Sherwin-Williams Case Study Answers

Sherwin-Williams current strategy is to continue expansion through acquisitions with a focus on global expansion. However, the company faces some external and internal challenges. Some of the external challenges faced by Sherwin-Williams are the possibility/threat of economic downturn, increasing raw material costs (particularly crude oil and titanium dioxide), the demand for improvements in green technology and products, the threat of increased competition from home improvement stores, and increasing global competition as the company continues to expand. Some of the internal challenges faced by Sherwin-Williams are the amount of externally financed debt, increasing raw material costs, heavy reliance on the Paint Stores group, e-commerce, an increasing global footprint, a mature market, the Valspar acquisition, management training, manufacturing and product safety, …show more content…
To face the challenge of the green initiatives, Sherwin-Williams should increase the use of less harmful chemicals in paint and coatings. This will also improve the safety of workers. If a particular safety incident occurs, safety programs should be increased, as well as marketing efforts to minimize public scrutiny of a particular incident. The final two triggers are large acquisitions by PPG and unexpected resignation of the CEO. If Sherwin-Williams’s largest competitor, PPG Industries, were to make a large acquisition, Sherwin-Williams should pursue an alternative acquisition that would allow the company to maintain or increase market share. If the final trigger, unexpected resignation of the CEO, were to occur, Sherwin-Williams should apply the next man up philosophy. The management training program that Sherwin-Williams has in place will allow for a smooth transition between