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Tire City
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Titanium Dioxide
1.
What are Du Pont's competitive advantages in the Ti02 market as of
1972? How permanent or defensible are they? What must Du Pont do
to retain its competitive advantages in the future?
2.
Given the forecasts provided in the case, estimate the expected
incremental free cash flows associated with Du Pont's growth strategy
and maintain strategy for the Ti02 market. How much risk and
uncertainty surround these future cash flows? Which strategy looks
most attractive?
3.
How might competitors respond to Du Pont's choice of either
strategy in the Ti02 market? What other factors should Du Pont
consider in making this decision?
4.
Which strategy should Du Pont pursue?
Super Project
Capital Budgeting - Titanium Dioxide
1. What other relevant cash flows for General foods to use in evaluating
the Super project? In particular how should management deal with the
issues such as
1. test market expenses?
2. overhead expenses?
3. erosion of Jell-O contribution margin?
4. allocation of charges for the use of excess agglomerator
capacity?
2. How attractive is the investment? How useful are these measures of
investment attractiveness?
3. How attractive is the Super project in strategic and competitive terms?
What potential risks and benefits does General foods incur, by either
accepting or rejecting the project?
4. Sure General Foods proceed with the project? Why or why not?