Creating shareholder value through total customer solutions

Abstract

This thesis examines how various chemical companies create shareholder value. Against the backdrop of the latest strategic thinking of Arnoldo C. Hax and Dean Wilde Il as discussed in the Deha Model, the author reviews the strategic position of each company and compares them to the shareholder value they create. This thesis concludes that adopting the Total Customer Solutions strategic posture creates enhanced shareholder value. The Chemical Industry, despite its rich and profound history, when compared to the Standard and Poor's 500 over the last five years, has been consuming value. In order to reverse these trends, companies have been focusing their energy on Rapid Globalization, Increased Mergers and Acquisitions, Business Transformation and Innovation. The advent of the Internet and how companies position themselves within this new space will also play a critical role in most companies' future success. The thesis suggests that all of these activities should be viewed from the Total Customer Solutions perspective, creating stronger alignment between strategy, adaptive processes, and execution. The thesis concludes by suggesting how Eastman Chemical Company may utilize the principles embedded in the Deha Model to strategically reposition itself as a Total Customer Solutions Company.