INTRODUCTION
PPG is a chemical company founded in 1883 in Pennsylvania, which operates in coatings and paints segment since 1900. Presented in more than 50 countries, it has six SBUs, Automotive, Refinish, Industrial, Protective and Marine Coatings, Packaging and Architectural, with 21 brands (PPG, 2017aa).
Brazil is the world's sixth paint market, the ten Brazilian largest manufacturers own 75% of market sales and PPG occupies the fourth position in this ranking. PPG Brazil’s net sales in 2016 were $3.4 MM and 1.5 MM liters produced. The market is divided into SBUs: Architectural has 85% in volume and 70% in sales, Automotive has 2% in volume and 4% in sales, Refinish has 4% in volume and 9% in sales and Industrial has 9% in volume and 17% …show more content…
About the first issue, Slater and Narver (1994) point out that the development of innovative new products is a key factor to growth and Gupta et al. (2016) highlight that the development of sustainable products creates a favorable reputation and facilitates increments in growth of revenue. In fact, PPG has achieved a 50% increase in net sales from sustainable products in 2016 compared to 2012 (PPG, 2017b) while total net sales increased much lower 21% in the same period (PPG, …show more content…
This aspect has been translated internally as the main mission for supply chain department: improve working capital through inventory reduction. This pattern repeats itself in all functional departments, with focus in other strategies that don´t have the customer in the foreground. A company that doesn´t have this driver in their marketing culture, is the side effect. PPG strategy is segmented in the same departmental format, each department looks at its responsibility in the strategy sheet and goes ahead with this focus, without looking in a macro view and without looking at the end of the long chain where the customer
PPG is a chemical company founded in 1883 in Pennsylvania, which operates in coatings and paints segment since 1900. Presented in more than 50 countries, it has six SBUs, Automotive, Refinish, Industrial, Protective and Marine Coatings, Packaging and Architectural, with 21 brands (PPG, 2017aa).
Brazil is the world's sixth paint market, the ten Brazilian largest manufacturers own 75% of market sales and PPG occupies the fourth position in this ranking. PPG Brazil’s net sales in 2016 were $3.4 MM and 1.5 MM liters produced. The market is divided into SBUs: Architectural has 85% in volume and 70% in sales, Automotive has 2% in volume and 4% in sales, Refinish has 4% in volume and 9% in sales and Industrial has 9% in volume and 17% …show more content…
About the first issue, Slater and Narver (1994) point out that the development of innovative new products is a key factor to growth and Gupta et al. (2016) highlight that the development of sustainable products creates a favorable reputation and facilitates increments in growth of revenue. In fact, PPG has achieved a 50% increase in net sales from sustainable products in 2016 compared to 2012 (PPG, 2017b) while total net sales increased much lower 21% in the same period (PPG, …show more content…
This aspect has been translated internally as the main mission for supply chain department: improve working capital through inventory reduction. This pattern repeats itself in all functional departments, with focus in other strategies that don´t have the customer in the foreground. A company that doesn´t have this driver in their marketing culture, is the side effect. PPG strategy is segmented in the same departmental format, each department looks at its responsibility in the strategy sheet and goes ahead with this focus, without looking in a macro view and without looking at the end of the long chain where the customer