This website uses cookies to ensure you have the best experience. Learn more

Methanex Case Study (Ivey Case)

5380 words - 22 pages

Methanex: Developing Strategy in a Commodity Industry |

Methanex is the world's largest methanol producer. Before the economic crisis that had occurred in 2008, the company was very successful. It has been successful because of its leadership, which cut operating costs to a minimum, along with its reliable delivery. It also has a multi-million-dollar facility in remote, natural gas rich regions in the world and has its own distribution and logistics system.

Methanex is facing lower profit margins and having concerns of remaining sustainable in the market due the rising price of natural gas and political instability where its factories are ...view middle of the document...

86 million tonnes of methanol sit idle because of Argentinean government's ban on natural resource exports. This demonstrates how political instability and the government, which are both factors of the external environment, can play a significant role in Methanex's production and profit margins. In addition, Methanex’s environment is complex and unstable (Daft and Armstrong 2012, 141) making it mandatory for the company to keep up-to-date and be aware of the environmental changes. As a result, plans have been developed to set up plants in China, where the demand for methanol is increasing.
3.1) Strength
Methanex is a big company with substantial large capital and has the potential, along with resources to expand into different sectors to become more diversified. It has the ability to hold inventory as the company owns storage facilities in the main distribution hubs. Furthermore, the company establishes a competitive advantage through utilizing a cost-leadership strategy, where Methanex uses the lowest cost of operation in the industry to eliminate competition (Daft and Armstrong 2012-Porter’s Competitive Strategies pg.59). In addition, Methanex has formed a good reputation for delivering quality goods in a timely and professional manner. In 2011, the annual global demand for methanol was 50 million tonnes and therefore, one of the major strengths for the company is the fact that there is an increasing global demand for methanol. Methanol is used in manufacturing, such as wood glues, photographic films, solvents, and textiles.
3.2. Use of methanol (Refer to Appendix A and B )
In the energy sector, the demand for methanol has been increasing to reduce harmful automobile emissions. In addition, low natural gas prices, particularly in North America, reduce production costs for Methanex as it expands its business. Furthermore, Methanex is an international corporation which can diversify their company to protect against political uncertainty. Methanex has successfully placed its production plants near remote natural gas-rich regions with abundant supplies, thus allowing the company to decrease their overall transportation and logistics costs as well. Other oil industries produce different fuels making Methanex a dominant corporation in manufacturing methanol. Another strength aspect is the fact that the cost of methanol is increasing, which means Methanex can sell their product in the market at a high rate of profit. Methanex has many secured long-term contracts in New Zealand, Egypt, Trinidad, Louisiana plants as well as new emerging contracts as the company expands, thus portraying the analyzer strategy where the company seeks stability and focuses on internal efficiency while innovating on the side & expanding to new markets (Daft and Armstrong 2012- Miles & Snow’s Typology Strategy pg.61). Methanex also utilizes the geographic grouping structure where each geographic unit includes all functions required to produce...

Other Papers Like Methanex Case Study (Ivey Case)

Case Study

941 words - 4 pages Analysing a Strategy Case Study - Some TipsCopyright: Adrian Haberberg and the University of Westminster, 1998Give yourself time to assimilate a caseThe longer that a case study is given to "sink in" to your subconscious, the deeper the understanding you will get and the better your answers will be. Read the case material for the first time as soon as you have been allocated it as an assignment or seminar example. Get a general impression:Which

Case Study

992 words - 4 pages Objective: Case Study 1 1. Interview: After completing your assigned readings for this week, interview someone who has a customer relations/customer service role or responsibility where the person has organizational responsibility and knowledge of the company’s customer relations policies. This person could be in your own organization or in any other company. Ask the interviewee to describe the role and importance of customer relations

Case Study

1978 words - 8 pages [pic] OPERATIONS MANAGEMENT MGCR 472 CASE STUDY ASSIGNMENT Due on November 23 in class INSTRUCTIONS: 1. Make sure to write down the name, student # and section # for each student in the group on the cover page of the case study report. 2. This assignment counts for 14% of your final grade. 3. Late submissions and submissions by e-mail will not be accepted. 4. You have to work in this assignment in groups. The number of

Case Study - 1999 words

1999 words - 8 pages CASE STUDY Chapter SIX CASE 6-1 Case Study on “Transfer Pricing Problems” Case SUMMARY Division A of Lambda Company manufactures product X, which is sold to Division B as a component of product Y. Product Y is sold to Division C, which uses it as a component of Product Z. Product Z is also sold to customers outside of

Case Study - 874 words

874 words - 4 pages Case Study 7-1: Prosperity Painting Equipment (p. 232)  Instructions: Use the following framework for your case analysis. Your case analysis assignment is designated above and can be found in your textbook.  Step 1: Read the case thoroughly with a view to understanding the international marketing issue illustrated by the case. Make sure you discriminate between information which is relevant and that which is superfluous and/or ambiguous

Case Study - 616 words

616 words - 3 pages Case Study | Quantum Telecom Questions 1. How do we eliminate politics from gate review meetings? Gate review meetings are a form of project close. Gate review meeting could result in the closure of a life-cycle or the closure of the entire project. At each gate, the continuation of the process is decided by the project manager or a steering committee. The decision is based on the information available at the time, including the business

Case Study - 661 words

661 words - 3 pages Case Study Alzheimer’s Jamie Newell HSC/245 Intro to Health and Disease September 8, 2014 Gwendolyn Ivy Case Study: Alzheimer’s Case Study Chapter 21 Alzheimer’s disease is a progressive, degenerative disorder that attacks the brain’s nerve cells, or neurons, resulting in loss of memory, thinking and language skills with noticeable behavioral changes. (Alzheimer’s foundation, 2014). In the case of Jenny’s grandma

Case Study - 1470 words

1470 words - 6 pages Case Study William Smith Professor Leona Williams July 15, 2014 Columbia Southern University This case study paper is focused on the exclusionary rule, which is defined as an interpretation of the Fourteenth Amendment by the Supreme Court that holds evidence seized in violation of the U.S. Constitution cannot be used in court against a defendant (Dempsey, J., Forst, L., 2011). What this rule pretty much means is that any evidence

Case Study - 2568 words

2568 words - 11 pages CASE STUDY: STARBUCKS COFFEE BY: KATHLEEN LEE GRC 411 CASE STUDY: STARBUCKS Brief History: The first Starbucks location opened in 1971. The name is inspired by Moby Dick’s first mate. This name and the mermaid logo were inspired by the love of the sea, from Starbucks original location in Seattle Washington in the heart of Pike Place Market. Starting as a single shop specializing in high quality coffee and brewing products the company

Case Study - 975 words

975 words - 4 pages MGT C38F: Entrepreneurship Case Analysis September, 2006 Each case that we study is intended to sharpen your opportunity analysis skills and to inspire you with stories of entrepreneurial success. Your preparation should include the following sections: 1. Background Describe the key player(s), product(s) or service(s), market and if really important, other elements of the situational context. For a briefing memo, this should be no

Case Study - 994 words

994 words - 4 pages Case study Name Institution Date One of the sensational crimes of the 20th century was the kidnapping of Charles Augustus Lindbergh, who was the oldest son of Charles and Ann Morrow. During the time if kidnapping the son was 20 months old and this happened in his home one evening on March 1st, 1932. Two months later the kidnapped body of the toddler was discovered some few miles from Lindbergh’s home. After the body had been taken through

Related Essays

Case Study 779 Words

779 words - 4 pages MGT 448 Week 4 Individual Assignment Google in China: Case Study MGT 448 Google in China: Case Study China and Google have not seen eye to eye lately. the element of defending human rights or complying with the Chinese Government has placed Google with a decision to choose between the two . This paper will examine the case study, Google in China, and answer the following questions: What advantages and disadvantages does Google

Case Study 1495 Words

1495 words - 6 pages A. Definition The case study method is a research strategy that is different from every other teaching method. A case method is a teaching approach of the study of a situation, used as a tool to help students analyze a real-life business case in-depth. In order to follow this type of process, students will have to identify the problem, gather the most accurate and important information and facts that the case provides to find a solution to

Case Study 2855 Words

2855 words - 12 pages 1 How to Write a Case Study What Is a Case Study? A case study is a puzzle that has to be solved. The first thing to remember about writing a case study is that the case should have a problem for the readers to solve. The case should have enough information in it that readers can understand what the problem is and, after thinking about it and analyzing the information, the readers should be able to come up with a proposed solution. Writing an

Case Study 534 Words

534 words - 3 pages Running Head: Case Study 1 Case Study #1 Clinical Psychology: Severe Depression Princess Coles ABS 200 Introductions to Applied Behavioral Sciences Instructor Weniger 08/4/2015 Severe depression is one of the many mental illnesses that affect one out of ten Americans. Severe depression involves, extreme or constant feeling of sadness, loss of interest in activities and even relationships. Those suffering from depression