dvantage by creating new innovative products that their customer base considers to be unique and important, and maintaining a simple organizational structure. Dow Chemical has incorporated some elements of cost-leadership by adopting a decentralized form of management, a more hands on control of day-to-day functions of its niche, and reducing employee compensation cost. This form of management structure opens corporate communication channels and reinforces well-informed employees of the Companys mission. This was achieved by reducing the workforce by 30 percent and eliminating seven layers of management. The current management structure contains only five people between the most junior employee and the Chief Executive Officer. Dow Chemical appears to have embraced a Global Strategy, which is increasing profitability by reaping the cost reductions that come from experience-curves and location economies and by expanding its market share outside of its home country. This business savvy type of management approach seeks to penetrate a huge market availability, which as global markets develop will gradually combine into just one market. In developing their mission goals and corporate strategy, Dow Chemical has obviously considered both External and Internal stakeholders and how strategic maneuvers would impact their ultimate goals. Examples of stakeholder impacts are: External Stakeholders:- Customers: Provide the core of revenue, especially in untapped markets overseas.- Suppliers: Provide input w/significant savings through combined purchasing with Union Carbide Company and 13 other large companies.- Governments: Significant reduced manufacturing restrictions and potential incentives to conduct business in foreign countries.- Unions: Many foreign countries are not unionized, which could be a production cost incentive.Internal Stakeholders:- Stockholders: Maximizing their Return On Investment by expanding operatio...
