Ciba-Geigy Case Study Essays for MBA Strategy Subject Essay

Ciba-Geigy Case Study Essays for MBA Strategy Subject - Essay Example The principle markets for this segment comprised of North America, Western Europe, South East and Japan. The industry consolidated, following the oil crisis in the 1970’s, and had become increasingly competitive with high entry and exit barriers requiring environmentally sound production techniques and high investment. But, Ciba, in spite of the adverse market conditions, on the strength of its innovative products had managed to achieve steady growth in its pigment business making pigments a strong performer within the industrial divisions. Some of the biggest customers of Ciba were in America and Japan, and during the year 1994, U.S. sales accounted for approximately 40% of its total sales for HPPs, besides, Ciba was the second largest employer in the state of Delaware, which added to the several strengths of the company and strengthened the argument in favor of investing in the Newport plant project. According to the portfolio planning initiative that took place in the year 1994, under the guidance and leadership of Verena Laanio, certain categories were designed and developed which aimed at serving three main functions: first, to serve as a resource allocation device, second, to manage the overall portfolio in terms of cash and growth; and third to provide management focus on the appropriate key success factors for each stage in the lifecycle. According to Ciba’s portfolio planning guidelines for core businesses, the Pigment’s division was responsible for increasing cash flows by about 50 million Swiss francs per annum, thus satisfying the company’s primary target. Secondly, Ciba’s pigment division head, Mark Schutz, assured the management of maintaining the required levels of 10% RONA, which at its very worst would dip to 6%, satisfying the second target set by the company. After the company’s reorganization, its businesses were divided into 33 segments which were further sorted into five categories;