Economists of scale and scope demands uniformity and

… economists of scale and scope demands uniformity and integraion across
markets…
-
Serving regional and naional markets requires adapion … to local condiions”
(HBR June 2013 p.114)
 Everyone’s wish: both!
Both integraion and responsiveness?
“I want need to be a
transnaional”
-
Pressure to
improve on both ends
increased in the 1990-
ies
14
Verspreiden niet toegestaan | Gedownload door Sybe klaas Kappe ([email protected])
lOMoARcPSD|105219

-
As “McDonaldizaion” of consumer tastes and insituions did not go as far as
expected (or hoped for)
-
But consumers sill wanted reassurance of internaional brand
-
AND a low price!
Organizaional opions for transnaional
-
Sevenies, Eighies: matrix
Matrix
-
Theoreically the ulimate soluion
-
In pracice: each manager has two bosses, result:
o Inighing
o Endless meeings
o Clumsy compromises
o Decision making horrible
ABB’s 3-dimensional matrix
-
Latest atempt: ASEA Brown Bover between 1993 and 1997: ended in failure
o To the frustraion of many consultants, professors of INSEAD and others…
Percy Barnevik’s 3-D matrix: nice idea, lousy pracice
A dynamic soluion
-
Conlicing interests like these are not resolved with simple & uniform organizaion
structures
-
Approaches chosen in pracice:
o 1. Operaional approaches:
 Operaional procedures, spanning diferent hierarchies (BPM)
 Technical soluions (postponement, modularity)
o 2. Diferent soluions in diferent regions
 “triad” regions containing several markets (VR2-3)
o 3. Diferent organizaion upstream and downstream
 Upstream: integrated
 Downstream: market speciic
o 4. Intensive
cooperaion across
funcions, embedded in
procedures and
systems (VR2-4)
-
Real world soluion: AkzoNobel
case
15
Verspreiden niet toegestaan | Gedownload door Sybe klaas Kappe ([email protected])
lOMoARcPSD|105219

AkzoNobel – Guest Lecture
-
Jaap van Mourik: Decoraive Paints
-
Mainly family owned business
Today’s Objecive
-
A short AkzoNobel introducion
-
Share the real-life struggle for balance: market responsiveness <-> standards
Case Outline – Deco’s operaing model
From past To present
Introducion Current operaing model
From country organizaion… Markeing/Sales
To trans-EU organizaion Above market structure
The interbellum Q&A
This is AkzoNobel today: Painings & Coaings
-
3 main pillars:
o A major specialty chemicals supplier and leader in many markets  specialty
chemicals
o A world leader in performance coaings technology and innovaion 
performance coaing
o Home to the world’s leading decoraive paints brands  decoraive paints
The world of AkzoNobel
-
Revenue: €9.6 billion
-
Proit: €0.9 billion
-
RoS: 9.4%
-
Employees: 35,700
A brief look at our history
-
1760: Lewis Berger opened a paint plant in London
-
1792: Sikkens opened a small paint/varnish works in Groningen
-
1895: Eka Chemicals founded with help of Alfred Nobel
-
1904: Protecive coaings plant by Holzapfel Ltd. In Felling, UK
-
1953: Dulux introduced in retail in the UK
-
1994: Akzo merger with Nobel to become Akzo Nobel
-
2008: Akzo Nobel acquired ICI
-
2010: Producion starts in Nigbo – China
AkzoNobel – Paints & Coaings
16
Regions % of revenue:
- North America: 12%
- Lain America: 9%
- Mature Europe: 33%
- Emerging Europe: 9%
- Asia Paciic: 32%
-