Final Application Project

Future product according to yahoo financial a joint

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Unformatted text preview: this market will continue to grow with a compound annual growth rate of 3% for the five- year period 2011- 2016. This industry growth provides Cooper Tire & Rubber with invaluable opportunities to increase its sales and market share in the US. Threats (External) An increase in rubber and oil prices in recent years pose a serious threat to the company’s cost. The company’s raw materials include natural rubber, synthetic rubber, and black carbon. Cooper Tires experienced this threat when its raw material expenses spiked in 2012. For instance, the average price for No. 3 rubber smoked sheets increased from $154.4 per pound in November 2011 to $169.1 per pound at the end of May 2012. This may hurt the company’s margins in the future unless they are able to cover these costs through the increase of product prices. Future Product: According to Yahoo financial, a joint effort between the U.S. Department of Agriculture and the Department of Energy has been arranged to promote the development and analysis of feed stocks, biofuels and bio based products. It can be referred to as the Biomass Research and Development Initiative. As a result, Cooper Tire & Rubber (along with a few other partners) has received a four- year grant (started in June 2012), to focus on “research efforts aimed at developing enhanced manufacturing processes for the production of guayule solid rubber as a biomaterial for tire applications, as well as evaluating the plant’s residual biomass for biofuel applications.” This $6.9 million initiative has the potentia...
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