Kenics Corp Case Study

Problem definition

Inexperienced European Manager

Mr. Masson had no experience with the products.

Masson had only a 3day visit to be exposed to the Static Mixer then was told

to set up a European office.

Not prepared For Europe

Not enough research was done for the European office.

Mr. Masson was given no guidence.

Lack of understanding of cultural differences in Europe

Customers spoke many different languages

Each country had different approaches when making purchasing decisions and different cultures

Prices in Europe too high

The price could be raised by as much as 45% due to various fees

Discounts not offered

European office not organized properly

direct mail was used more than other types media

need to use other types of advertising

Sales agents had to invest their own money and had to pay for trade shows and other materials to help them sell

Super Size Nozzles not good in Europe

Europe had a much wider variety of nozzle sizes

The six U.S. sizes fit very few European machines

The existing agents had made investments that should soon pay off and the manager did not want to do away with what

they had already done.

Strengths

S1 Unique technology

S2 Custom Products

S3 good US sales

S4 excellent Engineering

S5 good office in Japan

S6 Canadian Joint Venture

S7 Subassemblies

S8 Super Nozzles

S9 good US sales

S10 Defined market segments

Weaknesses

W1 Management

W2 European office

W3 lack of understanding of European markets

W4 Poorly trained sales agents

W5 wrong approach used in Europe

W6 broad market Segments

W7 Inexperienced European manager

W8 Super Nozzles in Europe

W9 No clear sales goals

Opportunities

O1 Growth in Industrial Chemicals markets

O2 many different markets

O3 possible growth in European sales

O4 other markets not yet explored

O5 Joint ventures in new areas

O6 Branded sub-assemblies

O7 Plastics industry growth

O8 Canadian...