Caso loctite

2008

LOCTITE

Pedro Juárez Ibarra Verónica Aguilar Gorocica Flavio Méndez ITESM-CEM 1/24/2008

CONTENTS

1.

Recommendations .............................................................................................................................................. 3

1.1.

Background.................................................................................................................................................. 3

1.2.

Recommendations .................................................................................................................................... 3

1.2.1.

Processes Standardization ........................................................................................................... 3

1.2.2.

Innovation........................................................................................................................................... 4

1.2.3.

Hong Kong operation ..................................................................................................................... 4

2.Background............................................................................................................................................................ 5

3.

Needed Resources............................................................................................................................................... 5

4.

Expected Results................................................................................................................................................. 6

5.

Conclusions ............................................................................................................................................................ 6

1. RECOMMENDATIONS
1.1. BACKGROUND
As seen throughout the case, Loctite began operations within the United States and as the company grew, it began to face the challenge of penetrating new markets around theglobe with the different products they had to offer. The organization experienced a quite rapid growth based on key acquisitions such as Woodhill Chemicals as well as other silicone and polyurethane companies, which at the same time let them expand to other countries, to such a point in which 60% of their sales as well as 70% of their earnings were derived from operations outside the US.

1.2.RECOMMENDATIONS

1.2.1. PROCESSES STANDARDIZATION
The first recommendation is given in the light of the rapid growth that the company experienced, specifically regarding its organization structure. What we recommend regarding the structure, is that the company should be thinking of implementing an integral system or business model that allows them to have much more control over their operationsaround the globe as well as for improving the communication and coordination efforts, which would facilitate the design of horizontal processes which would at the same time let them standardize their way of operating, avoiding problems of familiarization with the products by the local staff as well as high expenses of having to send people from the main offices all over the world to operate thedifferent distributors and companies instead of training the local personnel. One alternative for this recommendation could be implementing a process management model, in which Loctite would be able to horizontally align certain processes throughout the three or more regional groups, to achieve communication between the different regions and therefore, a significant increase in their efficiency.North America

Europe

Asia/Pacific

Finance & Human Resources (training) OEM & MRO

Consumers & Automotive aftermarket

1.2.2. INNOVATION
A very interesting issue in the case is that Loctite noticed that the adhesives they made were actually suitable products for other purposes than just for the one they have been created. This second recommendation is based on a continuous...