Questions
1. What was an important organizational goal for Rohm and Haas in the mid-1990s?
2. What competitive priorities of Rohm and Haas were important for its Tier I customers?
3. Compare the above steps with the steps of operations strategy formulation given in the chapter. What are the similarities and differences?
4. What policies and actions were used by Rohm and Haas in any of the nine strategic decision categories?
Rohm and Haas (R&H), based in Philadelphia, is a major producer of specialty chemicals such as polymer emulsions used in water-based paint. In the-mid 1990s, R&H was being squeezed between suppliers (petrochemical companies) and major customers such as Walmart and Home Depot. Furthermore, competitors were taking market share. R&H’s selling price had remained the same for five years whereas costs were going up. In addition, the production and order fulfillment was chaotic and stressful. The II U.S. plants each made all of the approximately 800 products. All customers, approximately 4,000, received the same service such as customized certificate of analysis or packaging/labelling. There was no fixed lead time; the due date was negotiated between tire customer service rep (C'SR) and tire schedulers. The production schedule kept changing, with less than a day’s notice.