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CHEM4006: Enterprise For Scientists > 9. Speciality Businesses > Flashcards

9. Speciality Businesses Flashcards

1
Q

What is a Business-to-Business company?

A

A company (such as a speciality company) that sells its products to a secondary business.

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2
Q

What is a Business-to-Customer company?

A

A company that sells its product to the end consumers, often sourcing its materials from other suppliers.

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3
Q

What is the model of a speciality company?

A
  1. Engage with customers
  2. Create innovative products that meet customer needs
  3. Make the product quickly and to a high standard
  4. Sell the ingredients directly to customers
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4
Q

What are the 3 main focuses of CRODA?

A
  • Growth
  • Innovation
  • Sustainability
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5
Q

What are 3 Megatrends in the chemical industry at the moment?

A
  • Health and wellbeing
  • Feeding the planet
  • Living sustainably
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6
Q

What are two technology trends in the chemical industry at the moment?

A
  • Moving to biologics
  • Sustainable ingredients
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7
Q

What is a speciality chemical?

A

A chemical that sits between the extremes of a commodity product and fine/performance chemicals. Often they are multicomponent products.

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8
Q

The volume of a commodity chemical is ____ whereas the volume of a speciality chemical is ___.

A

High
Low

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9
Q

Is the manufacturing equipment dedicated or multi-purpose for commodity and speciality chemicals?

A

Commodity: Dedicated
Speciality: Multi-purpose (so machines can be adapted to different requirements)

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10
Q

The flexibility of a commodity chemical company is ___ whereas the flexibility of a speciality chemical company is ____.

A

Low
High

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11
Q

The price of a commodity chemical is ___ whereas the price of a speciality chemical is ____.

A

Low
High

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12
Q

What is the price model for commodity chemical companies?

A

Cost-plus

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13
Q

What is the price model for speciality chemical companies?

A

Value-added

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14
Q

The profit margins of a commodity chemical are ___ whereas the profit margins of a speciality chemical are ____.

A

Low
High

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15
Q

The life cycle of a commodity chemical is ____ whereas the life cycle of a speciality chemical is _____.

A

Long
Short

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16
Q

________ chemical companies provide higher customer support than ________ chemical companies.

A

Speciality
Commodity

17
Q

What are the departments of CRODA?

A
  • Commercial
  • Technical
  • Operational
  • Financial
  • Cultural
18
Q

What is the focus of a speciality commercial department?

A
  • Sales and marketing
  • Focus on understanding customer needs
  • Fast response times to customers
  • Nurture relationship with the customer
19
Q

What is the focus of a speciality technical department?

A
  • Translate customer needs into products
  • Patent and protect technology
  • Continual innovation
  • Technical link to customer
20
Q

What is the focus of a speciality operational department?

A

Managing the following sectors
- Cost (high)
- Flexibility (multipurpose)
- Technology (patented)
- Workforce (skilled)

21
Q

What is the focus of a speciality cultural department?

A

A customer-focused culture.

22
Q

What is the focus of a speciality financial department?

A

Giving good returns for the shares that customers buy.

23
Q

Define cost

A

How much it costs you to produce/manufacture a product.

24
Q

Define price

A

How much you are selling the product for.

25
Q

Define value

A

How much the customer is prepared to pay for it.

26
Q

Give the equation for profit margin

A
27
Q

Give the equation for % margin

A
28
Q

Describe profit margins graphically

A
29
Q

Give the equation for contribution

A
30
Q

Describe negative margins graphically

A
31
Q

What is the best way to price an item?

A

Just below the customer value. At this price, the customer feels like they’re getting a good deal (while the company still makes a profit) so may buy more.

Setting it at the market value is also a good strategy but the customer may be more hesitant/negotiate.

32
Q

How is the price set using the cost-plus method?

A
33
Q

How is the price set using the value-added method?

A

CHEM4006: Enterprise For Scientists (13 decks)

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