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Celanese

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Celanese
Table of Content

1. Introduction

2. Task A - Analysis Celanese AG (CE) Competitive Force Model – Porters Five Forces Value Chain Model Celanese centralised enterprise system to its business strategy Business Value

3. Task B - Systems Development Methodologies

4. Task C

5. Bibliography

1. Introduction
Celanese AG is a global producer of value-added industrial chemicals. They are one of the leaders in their product areas; Celanese has the leading position in producing acetyl products and engineered polymers. Their products are manufactured in North America, Europe and Asia. In 2006 Celanese’s net sales went up from 1,471 million USD to 1,573 million USD while their operating profit decreased by 15 percent from 172 million USD to 147 million USD which is due to an overall increase in many other charges and also a loss in sales which is related to AT Plastics Films Business.

2. Task A - Analysis Celanese AG (CE) Competitive Forces Model – Porters Five Forces I. Rivalry
Celanese’s traditional competitors include BASF, Methanax, Lanxess and other companies in the chemical industry. All of the competitors offer a similar range of products and services in the almost identical market. The ‘older’ competitors mostly have an excellent intuition for the market and have a good customer base.
In this situation the rivalry is very intense, because the companies are driven by the industry conditions in terms of price cuts and also raising the prices. For example: The Vice president of Celanese Emulsion announced on 21st of November that they are going to raise the prices on Emulsion Products in North America by 5 cent per wet pound which is due to an increase of the prices of raw materials, feedstock’s, transportation and energy costs.
The exit barriers are very high – they are still the primary barriers to make profit. The companies who want to shut down and write off there assets can’t, because of ecological issues.
II. Threat of



Bibliography: Book Hicks, James O., 1990 Laundon, K.C. & Laudon, J.P., 2007. Essentials of Business Information Systems, 7th Edition. New Jersey. Pearson Education. Robson W., 1994. Strategic Management and Information Systems – An integrated approach. 2nd Edition. Great Britain. Pitman Publishing. E-books Koch, A., 2004 Available at: libweb.anglia.ac.uk/E-books [accessed 15 Nov 2007] Wagter, R., 2005 Available at: libweb.anglia.ac.uk/E-books [accessed 10 Nov 2007] Lau, L., 2004 Berinato, S. 2003. A day in the Life of Celanese’s Big ERP Rollup. [Online] Available at: http://www.cio.com/article/31637/A_Day_in_the_Life_of_Celanese_s_Big_ERP_Rollup/1 [accessed: 1 Dec 2007] MacKenzie, D. 2006. Tough laws loom for Europe’s chemical industry. [Online] Available at: http://www.newscientist.com/article/dn10269.html [accessed: 25 Nov 2007] Ariva.de 2006 Department Trade and Industry South Africa. 2006 [Online]. Available at: http://www.thedti.gov.za/publications/chemicals.htm [accessed: 2 Dec 2007]

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