Van Leer Essay

472 Words2 Pages
PROBLEM STATEMENT Van Leer is an old and established company, which was created in 1919, and had significant growth early in its years, and further more through the 60’s, 70’s and 80’s. In the 90’s Van Leer employed close to 16000 people across the globe and had profits at 67 million. In 1994, they held 25% of the world’s large steel drum sales. Van Leer has a highly diversified client base. Spanning across 41 countries with 130 factories, they pride themselves with their motto: “wherever you need us, we go.” Their strategy of operating close to their clients is an essential part of their success. They also have a very diverse and international employee base, with every executive board member being from a different nationality, which mirrors their international status. The issue faced by Van Leer is the conflict arising from one of their main customers, TOTAL France. Van Leer is also faced with the uncontrollable increase in steel costs, which then must transfer the rising prices to its clients. TOTAL is going through a global reengineering effort, trying to standardize and cut costs. TOTAL has 3 main conditions for their suppliers: (1) offer goods internationally (2) factor in TOTAL’s international standard requirements (3) keep track of sales volumes and negotiate globally with a single representative. Van Leer is a company that will position itself close to its customers, and would be faced with many challenges, along with keeping their prices down, if they were to do what TOTAL is requiring of their suppliers. 20/80 S.W.O.T. Strengths Weaknesses • Highly diversified client base. • “wherever you need us, we go” • Having steel be their main substance for containers • Drum prices, tied to steel prices Opportunities Threats • grow into other substances other then steel. • Fewer competition • Increasing steel prices • Clients consolidating their

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