9. Speciality Businesses Flashcards
What is a Business-to-Business company?
A company (such as a speciality company) that sells its products to a secondary business.
What is a Business-to-Customer company?
A company that sells its product to the end consumers, often sourcing its materials from other suppliers.
What is the model of a speciality company?
- Engage with customers
- Create innovative products that meet customer needs
- Make the product quickly and to a high standard
- Sell the ingredients directly to customers
What are the 3 main focuses of CRODA?
- Growth
- Innovation
- Sustainability
What are 3 Megatrends in the chemical industry at the moment?
- Health and wellbeing
- Feeding the planet
- Living sustainably
What are two technology trends in the chemical industry at the moment?
- Moving to biologics
- Sustainable ingredients
What is a speciality chemical?
A chemical that sits between the extremes of a commodity product and fine/performance chemicals. Often they are multicomponent products.
The volume of a commodity chemical is ____ whereas the volume of a speciality chemical is ___.
High
Low
Is the manufacturing equipment dedicated or multi-purpose for commodity and speciality chemicals?
Commodity: Dedicated
Speciality: Multi-purpose (so machines can be adapted to different requirements)
The flexibility of a commodity chemical company is ___ whereas the flexibility of a speciality chemical company is ____.
Low
High
The price of a commodity chemical is ___ whereas the price of a speciality chemical is ____.
Low
High
What is the price model for commodity chemical companies?
Cost-plus
What is the price model for speciality chemical companies?
Value-added
The profit margins of a commodity chemical are ___ whereas the profit margins of a speciality chemical are ____.
Low
High
The life cycle of a commodity chemical is ____ whereas the life cycle of a speciality chemical is _____.
Long
Short
________ chemical companies provide higher customer support than ________ chemical companies.
Speciality
Commodity
What are the departments of CRODA?
- Commercial
- Technical
- Operational
- Financial
- Cultural
What is the focus of a speciality commercial department?
- Sales and marketing
- Focus on understanding customer needs
- Fast response times to customers
- Nurture relationship with the customer
What is the focus of a speciality technical department?
- Translate customer needs into products
- Patent and protect technology
- Continual innovation
- Technical link to customer
What is the focus of a speciality operational department?
Managing the following sectors
- Cost (high)
- Flexibility (multipurpose)
- Technology (patented)
- Workforce (skilled)
What is the focus of a speciality cultural department?
A customer-focused culture.
What is the focus of a speciality financial department?
Giving good returns for the shares that customers buy.
Define cost
How much it costs you to produce/manufacture a product.
Define price
How much you are selling the product for.
