… 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% -
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