Eastman Chemical to Triple Operations in 5 Years

Case Type: increase sales/market share; business expansion, add capacity.
Consulting Firm: Diamond Management & Technology Consultants (now PwC Advisory) 2nd round job interview.
Industry Coverage: Chemical Industry.

Case Interview Questions #00077: Your client Eastman Chemical Company (NYSE: EMN) is a large U.S.-based chemical company, engaged in the manufacture and sale of chemicals, fibers, and plastics. Eastman has 11 manufacturing sites in seven countries, supplying its products throughout the world. Founded in 1920 and based in Kingsport, Tennessee, eastman chemical companyEastman is a Fortune 500 company with sales of $6.7 billion in 2008, and approximately 10,000 employees.

The CEO of Eastman Chemical Company would like to increase the size of its operations substantially in the next few years. Their objective is to triple both sales and profits within 5 years (ambitious!). How can you assist them to achieve this goal?

Additional Information: (to be provided to you if asked)

Eastman manufactures and markets chemicals, fibers and plastics worldwide. It provides key differentiated coatings, adhesives and specialty plastics products. It is also a major supplier of cellulose acetate fibers and produces PET polymers for packaging. The products manufactured by Eastman Chemical Company are categorized in five key sectors:

  • Coatings, adhesives, specialty polymers and inks
  • Fibers
  • Performance chemicals and intermediates
  • Polymers
  • Specialty plastics

Possible Answers:

The following are a list of key questions that should be asked before your analysis of the case:

You need to be logged in to access/download the rest of the page. Please Log in or Register now.

This entry was posted in Case Interview Questions, add capacity & growth, increase sale/revenue and tagged , , , , , , , , , , , . Bookmark the permalink.

One Response to Eastman Chemical to Triple Operations in 5 Years

  1. sumanth_p2003 says:

    Use 4P method.
    I am trying to think about the products sold. We can get more information about the sales of each of the product and compare with those of the competitors. Check which of the products have more sales compared to the competitors and figure out the reasons if the sales of the client’s product(s) are low? May be competitors are using a new technology or they must be following some cost cutting activities leading them to reduce the prices.
    Compare the competitors promotion, and distributions activities. Also know about the sales process.
    segment the customers and identify what factors/features each segment values the most ( may be use conjoint analysis!) and sales/market shares out of each segment.
    can we use the same plant/equipment/labor/suppliers for manufacturing all the products? This can give us some ideas about the costs…

Leave a Reply

Your email address will not be published. Required fields are marked *

*

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>