Strategic Growth Of Dow Chemical

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Strategic Growth of Dow Chemical Sandy Beltran, Chris Chrisman, Nathan Hoskins, Jennifer Laplante FIN370 September 26, 2011 Steve Kraft Strategic Growth of Dow Chemical Dow Chemical needs to grow territorially and financially to expand their profitability as a corporation. The goal of any company in business is to make a profit. Team C must describe a strategic planning initiative and identify an initiative discussed in Dow Chemical’s Annual Report. The team must also explain how that initiative affects Dow Chemical’s financial planning. The team will determine how Dow’s initiative affects costs and sales. Team C must also describe the risks associated with the initiative and financial effects they may have. A strategic planning process delivers a set of defined initiatives (projects) that achieve a desired set of business goals (McDonald, 2007). A strategic initiative must be planned out and backed up with data to become an initiative worth undertaking. Dow Chemical increases its sales and eliminates risk by undertaking profitable initiatives. Dow Chemical’s broad strategic objective is to grow in evolving geographies, primarily Southeast Asia. Dow Chemical wants to construct new manufacturing facilities in China and Vietnam to expand production of advanced materials to reach strong industry channels. The next phase of Dow Chemical’s strategic plan is to acquire the company Rohm and Haas. Dow Chemical pursued the acquisition of Rohm and Haas to make the company more of a leading specialty chemicals and advanced materials company, combining the two organizations’ best in class technologies, broad geographic reach and strong industry channels to create a business portfolio with significant growth opportunities (Dow Chemical Company, 2011). The purpose in the acquisition of Rohm and Haas is to increase production for the growing demand of circuit boards,
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