Kent was established in 1917 as a rubber producer, with the founding Fisher family controlling majority of the stock. Due to overseas acquisitions, expansions and increased sales, Kent Chemical had become a leading global specialty-chemical company; a multiheaded hydra with $2.2 billion revenues in 2007. Through intensive R&D and innovations the company had developed a viable product line including consumer, fire protection and medical plastics products. However, the decision to transform Kent from a U.S. company dabbling in international markets into a viable contender that develops, manufactures and sells worldwide became a top priority in 1998, when Ben Fisher became CEO of the company. To implement his vision of a global integrated company, Fisher named Morales, a 22-year Kent veteran who had become a country manager to head the international division of Kent Chemical Products.
1. What were the problems facing Luis Morales as he began implementing Ben Fisher's international expansion strategy?.
The speedy growth of the overseas business had also led to some challenges that needed to be confronted by Morales as part of his special assignment. First, Morales was concerned that the organization lacked the proper response to changing pressures and demands. For instance, the corporate reporting systems that were designed to centralize the various divisions of the organization had become a source of strain between them. They were no required to follow common procedure in capital allocation, financial reporting and target setting to mention just a few.
The second concern stemmed from the overseas subsidiaries' long history of independence that led to protection of self-interests by managers. As a result, it became difficult to integrate overseas operations strategies as parochial attitudes prevailed.
Thirdly, Morales discovered that the regional organization in his own international division did not have a global perspective or the experience to deal with issues with global implications.
