Internal Entrepreneurship at the Dow Chemical Company

CASE STUDY ON

INTERNAL ENTREPRENEURSHIP AT THE DOW CHEMICAL COMPANY

SUBMITTED BY:

NIRJALA PANDEY

February 1st 2010

OVERVIEW OF THE CASE

With the launch of e-epoxy.com in 2000, Dow Chemical Company became the pioneer in the field of science and technology by 2002 specializing in chemical, plastic and agricultural products. But the scenario was different before 2000 with declining profit margin. The company then figured out ways to foster success and came up with a new growth initiative: E-epoxy.com venture. Epoxy Products and Intermediates (EP&I), located at Dow’s European headquarter at Switzerland, designed, produced and sold epoxy resins and was a high margin business for Dow Chemical.

SWOT ANALYSIS

STRENGTHS

* Epoxy was a specialty business with a high profit margin. Most of its revenue was generated from top 20% global customers and its product line can be termed as its initial competitive advantage.

* Epoxy’s global customer base was highly supported by Dow Chemical by providing technical and other important services.

* Ian Telford, a visionary European Sales Director for EP&I, can be coined as major strength of the company. His knowledge base of Dow Chemical, enthusiasm for growth and innovative activities, ability to identify growth opportunities, risk taking and entrepreneurial behavior proved beneficial for the success of new e-epoxy.com venture. In addition, Telford’s vision and clearly defined business protocols got immense support from senior managers and consultants. He hired employees who were willing to take risks. His concern for employees and encouraging team work became source of motivation for the employees.

* Ability to foresee and anticipate future needs and demand became strength for Epoxy. Seeing the rise of dot.com businesses, Epoxy immediately realized its growth prospects and decided to form its own internet platform. Epoxy wanted success; hence goals and immediate targets were set for realizing the success....