Document LpZG5DVmkbXpG5V8BqGV6G4bX
Wil min g t o n , De l a w a r e 19898
CHEMICALS AND PIGMENTS DEPARTMENT
cc: P. 0. Grunwald
3 J. P, Glas
L. 0. Greenberg B. F. Kennedy W. H. Reynolds H. D. Smith R. J. Pavlin H. L, Glotzer H. D. Graham T. A. Bartolec R. T. Harding
N. J. DiMarino R. C. Butler A. M. Roe
S. T. ALLEN J. A. BLUMBERG R. 0. BRAENDLE J. C. BRECKENRIDGE R. A. DARBY G. C. TUNIS
September 9, 1983
r
EXECUTIVE SUMMARIES
I recently chaired a committee of your Divisional representatives to review / and revise the Executive Summaries. Attachment A is a list of the products for
which Executive Summaries will be written for the 1984 planning cycle.
Attachment B is an Executive Summary format with descriptions of the requested information. Attachment C is a sample summary using Solid Cyanides as
an example.
Since there are nine more summaries than last year, we attempted to stream line the process of creating the document by using the Business Plan Review format. For those products that had a General Management review, some straight forward editing of the Business Plan charts should yield most of the Executive Summary.
The data base for the Executive Summaries will be the #1-1984 forecast. The Product Divisions should begin to issue Executive Summaries after the fore cast is finalized In early October. All Executive Summaries should be completed and sent to Departmental Plans by December 16, 1983. Departmental Plans will issue a complete set of Executive Summaries to General Management by 1/1/84.
Questions re the Executive Summaries should be directed to'your DPD liaison.
KFB-.jds Attachments
N 26966
Attachment A EXECUTIVE SUMMARIES BY PRODUCT DIVISION
COLORED PIGMENTS
ACIDS & AROMATICS
Aniline *H2S04/S03/01eum Sodlum DCA PCL PD/NCB/ODA Nltrotoluenes
o l -Naphthylamine Sodium Nitrite Chlorosulfonic Acid Nitric Acid Silicates
WPSMP
Titanium Dioxide Ferric Chloride Mineral Products
METHANOL
Methanol Formaldehyde Methylamines/Methylamides BOO THF "Teracol"
DME/DMS Hydroxyacetle Acid
SPECIALTY CHEMICALS
Solid Cyanides Peroxygens . *Fluorochemicals Titanates
PETROLEUM CHEMICALS
Antiknocks Additives
Executive Summaries for these products were published last year
KFB:jds 8/10/83 Rev: 8/29/83
]S 26966
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Attachment B
BUSINESS PLAN EXECUTIVE SUMMARY BUSINESS NAME
BUSINESS DESCRIPTION:
What is the business? What products are made? What markets are served?
STRATEGIC MANAGEMENT CATEGORY: BUSINESS MISSION:
PRODUCT LIFE CYCLE: CURRENT COMPETITIVE POSITION:
PRIMARY STRATEGIC OBJECTIVE: A concise statement (a few sentences) describing what we're trying to accomplish In this business over the long term. This statement should also encompass mission and strategy.
N 26966.02
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Page 2
KEY ISSUES & KEY UNCERTAINTIES A key issue Is a description of an important problem, which if not resolved successfully, will prevent the business from accomplishing the primary strategic objective. Resolution of a key issue generally can be accomplished over time by the proper application of resources. Although most key issues will result from current business conditions, some will occur as the business' market structure or life cycle position changes over the forecast period. These key issues should be delineated and appropriate strategies developed to deal with them. A key uncertainty has the same attributes as a key issue, but may not be resolvable by the application of resources or may not have a strategy yet developed to resolve it.
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Page 3 BUSINESS PLAN - KEY ELEMENTS OF STRATEGY The Key Elements are those critical steps that the business must success fully implement to achieve the primary strategic objective. Examples are major pricing and volume strategies, significant process or product develop ments, key capacity requirements, and cost reduction objectives.
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Page 4 IMPLEMENTATION PLAN These are the specific actions required to achieve the business* objectives. The time frame is the remainder of 1983 and all of 1984. These items should be organized by functional responsibility: R&D, Marketing, Production, Product Division, and should have some specific timing. The implementation plan should be at most two pages.
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#1-1984 FINANCIAL FORECAST
Volume Revenues Pretax Earnings* Pretax Profit Margins
FINANCIAL SUMMARY
1983 (Estimated}
1984
Page 5
1985
1986
1987
1988
Volume Growth Rates (1983 - 1988) Price Growth Rates (1983 - 1988)
Retained Earnings Depreciation Capital Expenditures
LWorking Capital
Net Cash Flow
Authorizations (over 2MM$)
irk
Please footnote any significant Impact on PTE due to LIFO. **This section may be omitted for a small business where the major elements
of cash flow depend mainly on allocations.
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Pages 6 & 7 COMPETITIVE SECTION This section should contain data, graphs, and/or prose most descriptive of the competitive environment. Some examples: capacity/ demand data (Du Pont/competitors'), lists of key competitive strengths/ weaknesses, market environment descriptions, competitors' thrusts, technology advantages/disadvantages. The exact nature of the competitive section will be left to the discretion of the Product Division, but the emphasis should be on those key items driving the competitive environ ment. This section should be no more than 2 pages.
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SAMPLE EXECUTIVE SUMMARY
Attachment C
SOLID CYANIDES DESCRIPTION OF BUSINESS
BUSINESS DESCRIPTION:
Manufacturing and Marketing of Solid Sodium and Potassium Cyanides for use In mining, metal plating, and chemicals.
Du Pont is the only manufacturer of these products in North America with
- 70% of Domestic Market
- 58% of Western Hemisphere Market
STRATEGIC MANAGEMENT CATEGORY: Full Support
PRODUCT LIFE CYCLE: Mature
BUSINESS MISSION: Strengthen
CURRENT COMPETITIVE POSITION: Strong
PRIMARY STRATEGIC OBJECTIVE: Protect share in Western Hemisphere Market and capture growth in the North American mining industry.
JV 26966.
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SAMPLE EXECUTIVE SUMMARY
Page 2
SOLID CYANIDES KEY ISSUE
How can we position ourselves to meet North American price competition?
KEY UNCERTAINTY
Does increased competition depress pricing such that expansion cannot be justified to compete in Latin America?
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SAMPLE EXECUTIVE SUMMARY
Page 3
SOLID CYANIDES BUSINESS PLAN - KEY ELEMENTS
o Protect market share and maintain price in the high growth U.S. and Canadian gold mining markets through technical service/dfstribution advantages.
o Continue to reduce costs.
o Increase capacity to permit maintenance of market share in Western Hemi s ph ere ma rkets.
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Page 4
SAMPLE EXECUTIVE SUMMARY
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SAMPLE EXECUTIVE SUMMARY
Page 5
SOLID CYANIDE FINANCIAL SUMMARY
1983 (Estimated)
Volume - MM Lbs.
78
Revenue - MM$
47.8
Pretax Earnings - MM$
7.5
Pretax Profit Margin - % 16
1984
92 58.7 10.9
19
1985
100 69.4 12.9
19
1986
108 79.0 15.5
20
Volume Growth Rate (1983 - 1988) 9.4% per year Price Growth Rate (1983 - 1988) 5.7% per year
Retained Earnings - MM$ 2.3
Depreciation - MM$
2.1
Capital Expenditures - MM$ 4.9
AWorking Capital - MM$ (0.8)
Net Cash Flow - MM$
0.3
(Retained Earnings Basis)
3.3 2.2 4.8 0.9 (0.2)
3.9 2.5 4.5 1.5 0.4
4.7 2.5 3.2 1.5 2.8
1987 112
86.4 17.8
21
5.3 2.6 2.8 0.9 4.2
1988 116
94.7 20.1
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6.0 2.8 2.4 1.0 5.4
DUP050146172
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DUP050146173