Group 1

Anshul Aggarwal (258)

Pranav Nahal (034)

KENT CHEMICAL: Organizing for International Growth
Gaurav Suri (146)

Karan Patira (148)

Q1: Why did the GBD concept not work? Was it not implemented well? What would
you do differently if given an opportunity?

Ans 1: Challenges and Failure of GBD –

The President expected that every chief from the GBDs gathering would enhance
correspondence levels in three center business zones, urge neighborhood workplaces to
pursue worldwide tasks methodology. GBDs were approved to deal with every business part
in their area, however because of lack of nearby learning, they couldn't perform productively.
There were several reasons for its failure such as lack of local knowledge,
communication problems and interfering the local operations.
Lack of Communication between Kent International and other Kent Chemical Divisions.
a) Administration of subsidiary organizations were permitted to keep on working in
their own old propensities and working methodology. This represented a great deal of issues
in smooth operations of Kent globally.
. b) Kent Chemical Products Management were not engaged with choices being made
by the international subsidiaries and stayed in dull. Their control on subsidiary
company was extremely poor.
c) Many changes were made at the subsidiary facilities without much regard on how
it will affect the company globally.

Other problems
1. GBD roles were not properly defined
2. Each of GBD has different objectives.
3. The one at customer items comprehended the job in his own specific manner that
he's endeavoring to infuse shopper situated reasoning into overseas subsidiaries
and that he couldn't have cared less about his job as long as they did what he
needed them to do. Then again, one of the GBDs while then again the one at fire
protection felt that regional managers ought to be fundamentally in charge of creation
and government relations while the third felt that she can be best by incorporating
global and residential parts in their tasks.
What can be done
1. Cross functional teams
2. People from marketing, manufacturing team should be there to contribute heir
efforts
3. Proper protocols should be set for each GBD
4. Proper communication between GBD’s
Q2: Did the creation of the World Board not address some of the problems with GBD?
Why did it still fail in two divisions but succeeded in the Fire Protection Division?

Ans 2: Resulting to the most exceedingly terrible exercises took in by Kent Chemicals from
the GBD's defects, they built up the World Boards to help GBDs to take in the nearby
information. The World Board (WB) included specialists from nearby offices. Be that as it
may, because of the antagonistic picture created by local people for GBDs, the local
managers at Kent Chemicals were very reluctant to propose thoughts to the WBs.

They assumed were to connect to the regional and international operations and were told to
give overall showcasing and tasks arranging, improve worldwide sourcing create innovation
on a worldwide scale and so on.
It was infrequently ready to venture into assentions to be overseen locally/comprehensively.
Numerous residential division administrators felt that world sheets were shaped in order to
help the out of support and supporting GBDs more power which they were totally against.
Reasons of failure:
1. No clear strategy
a. Lack of unity
b. Only financial consolidation
2. Inequality between organisations
a. Home office just wanted to control.
b. Sharing information but not sharing knowledge
3. No identification of common areas.

Q3: Why do you think KCP decide to bring in Sterling Partners as consultant? With
poor performance of KCP and impending global recession, is it the right time to being
in the consultants? IF yes why? If no why not?

Ans 3: Kent Chemicals chose to use a consultant since it was imperative to fortify the
organisational structure. Arrangements given by Sterling Partners (Kent's Consultants) - As
the matter of Kent Chemicals had genuine administration issues and was showing low
execution, their counseling firm, Sterling Partners examined the situation and propelled a
rearrangement program.
In the program, a grid association was setup to realign communication effortlessly and
proficiently, and would mix worldwide guidelines and neighborhood necessity together.
Another significant change they set out on was the activity region of every business line
would change. For example, the buyer items division had maintained their business
dependent on client needs; as Kent Chemicals needed to fit in with flame assurance laws of
every nation of activity, consequently the fire insurance items were limited, and the in
conclusion the medicinal plastic division would be overseen by consolidating worldwide and
neighborhood tasks since their primary customers were multinational organizations which
could supply the items all around.
All these restructuring and reorganizing still could not contain the most pressing and
challenging issue faced by the company – Control of the Global Headquarters on the branch
locations.
The consultants analysed that KCI's main problem was caused by their structure and
strategy like a small company. They gave three advises to strategize:-
1. KCI should introduce - local and regional administration,
2. medical plastics business should be coordinated globally, and
3. fire control products should be managed regionally since the country regulations differ in
every country. They also recommended to use "decision matrix" to outline their decision
process and address their ownership issues clearly.

To check if it is right time,

 The subsidiaries are rivalling each other which will prompt disintegration of the general
benefit. The objectives of various product offerings and geologies are not lined up with
KCI.
 Efficient evaluating technique can be actualized between the subsidiaries alongside
coordination on item and system, to expand generally speaking benefits by utilizing
the system.
 Because of the danger from recession, the interest will go down and this will hurt
subsidiaries as rivalry will increment