Please conduct a strategic analysis of DuPont de Nemours, Inc. (DuPont) often known as DuPont (Essay Sample)

A Strategic analysis of DuPont de Nemours, Inc. (DuPont) Student Name Institutional Affiliations Instructor Date A Strategic analysis of DuPont de Nemours, Inc. (DuPont) Introduction Strategic analysis is the process of evaluating the business environment of an organization in order to have clarity on how the business operates aiding to determine the functioning and goals set by the business. In this context, DuPont de Nemours Inc. or generally DuPont is the company of concern. DuPont is a technology and material-based company operating in the US, Africa; Middle East, Europe, Latin America, Asia Pacific and Canada. The company majorly covers three business segments – water and protection, materials and mobility as well as industrial and electronics (Holliday, 2001). The company is involved in supplying printing systems and materials to the advanced printing industry, supplying solutions and materials for fabricating semiconductors and integrated circuits linking the front and back-end of manufacturing. DuPont’s has a huge product portfolio which is inclusive of printing and packaging materials, personal care, medical, textile, aerospace, electronics, food and beverages, automotive, building and construction, adhesives, animal nutrition etc (Hoffman, 2020). It is one of the largest chemical organizations globally founded in 1802 and headquartered in Delaware, US. Their operation cuts across industries – synthetic, specialty chemicals, biotechnology, agriculture and electronics among others. DuPont main business strategy is sustainability which is grounded on its main purpose of empowering the world with the key essential innovations of thriving as inspired by the UN Sustainable development goals. DuPont’s vision is focused on being the best and dynamic science company in the world through the creation of sustainable solutions for bettering healthier and safer lives for all people (Prowle & Lucas, 2016). Its mission is pursuit of sustainable growth which is the creation of societal and shareholder value while minimizing environmental carbon footprint along all the value chains where the company operates. The company’s value statement entails respect for people, ethical behavior, safeguarding the planet, diversity, inclusion and equity. Its objectives are focused on utilizing science to create a more sustainable world through innovation and collaboration. This strategic analysis looks into the external, internal, strategic directions and recommendations for bright future. DuPont’s External Environment The external environment is comprised of factors from the outside of operations of DuPont which affect its operations through impacting its activities and choices. The Macro business environment of DuPont can be evaluated using the PESTLE analytic model by looking into the political, economic, social, technological, legal and environmental factors affecting the company (Global business environment, 2015). DuPont operates in a dynamically changing business environment shaped by different regulatory, changes, social trends, and technological advances and evolving legal system. Political: DuPont is operating in US, Africa; Middle East, Europe, Latin America, Asia Pacific and Canada. Stability in most of these regions helps the company to advance predictable market trends. Some of the regions such as Middle East are fragile areas and have limited growth. Most of the regions have changing policies on business operations which impact performance. -Worker protests and pressure groups has been an issue that has demanded for close collaboration with countries to achieve long term goals. Other political factors are corruption and Bureaucracy which jeopardizes trust, trade restrictions and taxation rates. Economic: Different economic development of countries affects DuPont’s performance differently. High GDP indicates high willingness to spend. Fluctuations in exchange rates influence the company profitability globally. The labor market, i.e supply and demand of labor affects DuPont’s supply of skilled workforce. The efficiency in financial markets affects DuPont’s expansions. Also the business is affected by the prevailing economic structures in the regions it operates. Social: Demographic trends in different areas affect spending and thriving of the business. Power distance and equality affects the hierarchy of income hence the business. Distinguished Gender roles affect the marketing in different areas. Distinctive cultural norms also affect how DuPont should customize its marketing in different countries. Online shopping is the advent of e-commerce and DuPont must consider generational differences and value online presence. Spending behavior is different dependent on purchasing power of money in different areas. Technological: DuPont is leveraging opportunities on social media marketing. DuPont must keep an eye on every technological innovation such as 5G in order to keep the pace of competition. R&D must be enhanced to invest in disruptive technologies so as to maximize profits. New technologies have shortened the life cycles of products increasing power of supply chains. Environmental: DuPont is adopting innovative recycling of waste to reduce carbon footprint and for sustainability. Some countries are offering subsidies for investment in renewable technologies. Extreme weather conditions in some regions compel the company to increase its operational cost flexing the value chain. DuPont is adopting green business practices following increased trend on eco-friendly products (Kushwah, 2018). Legal: DuPont restricts itself on the labor laws in different countries. Customer protection laws for DuPont are becoming a norm due to increased concern for consumer data protection. DuPont adheres to intellectual property laws in different countries in order not to lose its competitive advantage. The external environment of DuPont is also comprised of the Key Trends and Forces in the Industry: Some of these trends and forces affecting DuPont include increased globalization and different economic forces which affects performance of the company. DuPont is also highly affected by acquisitions, mergers and partnerships which have been its major means of settling in the different products. The management of business portfolios and reduction of formula costs in the chemical industry also affects DuPont. The demand for innovation and regulated environment for chemical industries also impact the company. Analysis of DuPont’s Internal Environment The internal analysis of DuPont highlights the organizational strength and weaknesses as it relates to its core competencies, competitive advantages and resources. This gives the firm, a clear idea of where it is excelling and where there are gaps (DuPont, 2021). In this case, an analysis of the key resources capabilities and core competencies is done as follows: The company has excellent returns on capital expenditure and is always expanding its revenue streams giving it a competitive edge over other players. DuPont has reliable suppliers and easily overcomes all bottlenecks in the supply chain. High automation of activities at DuPont has given the company a purge of consistency in quality products. DuPont has a successful track record of incorporating firms via acquisitions and mergers hence easily streamlining operations. Training of workers at DuPont produces highly skilled and motivated laborforce. DuPont has a strong brand portfolio which easily enables it to expand into new markets. A broad distribution network enables DuPont to easily reach its market potential (Tedlow & Ruben, 2008). DuPont has a strong dealer community where dealers are well trained on how to deal with the customer at every level. With these competencies and resources, the organization can stay at the top of competition. DuPont has great potential which adds up to its capabilities. These capabilities add up if DuPont is determined to exploit on the available opportunities. New policies regarding the environment offer DuPont the opportunity to leverage more in new technology and heighten its competitive edge. DuPont can also leverage on the low shipping costs which can help lower prices of commodities hence boosting profitability through bigger share in market. Low inflation rates in different regions offers opportunities to stabilize in the market. Stability in flow of cash offers DuPont the opportunity to invest in adjacent products. New policies in taxations offer opportunity of increasing in profitability. Its core competencies present the potential of expansion into other similar fields. New Technology gives the company the potentiality to leverage the differentiated strategy of pricing. Free trade agreements offer opportunities for expansion to potential markets. DuPont’s Current Strategic Directions and Methods Strategic direction denotes the plans which DuPont needs to implement in order to progress towards realizing its vision and fulfill its mission. DuPont’s strategic direction entails majorly the company’s sustainability strategy. This strategy is comprised of three key areas which are innovation, protection and empowerment (DuPont de Nemours Inc DD, 2022). Under innovation, DuPont wants to create innovations which are sustainable to aid the society thrive and counter its pressing challenges. DuPont is adopting the UN Sustainable Development goals as a guide to understand what the world is in need of currently. The company’s innovations seek to address global rather than just local challenges where the SDGs are used as themes to drive decision-making on investments. DuPont is committed to realizing new models which design out waste, keep materials in use and support more restorative and regenerative systems. Through its innovative sustainability strategy, DuPont is committed to enabling the operationalization of a circular economy where ma...