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Discuss the main points of the AGM report and discuss the company’s tactics when faced with a downturn in the market
Report on ICI Ltd
Imperial Chemical Industries Ltd (ICI) is a UK-based multi-national company that was first formed in 1926 when the four largest chemical companies in the UK at that time merged to become ICI. ... Today ICI has operations in 55 countries across six global regions. ... Currently, ICI is involved in the production of more than 50,000 products, which in 2002 accounted for its sales of £6 billion, about seven times greater than the figures presented in the 1996 AGM report. ...
The ICI annual statement, as shown in the Modular Task B1, tells us that in 1996 the company’s profits from polyester, titanium, dioxide and chlorine were much lower that expected, and describes the prices for these chemical substances as having ‘collapsed’. ... The report tells us there are three main approaches that the company will take in order to restructure itself, which will be done with the aim of reducing the economic impact of the ‘industry cycle’ on ICI’s profitability: These are:
i) The company will be adjusting its product portfolio towards higher value, and less cyclical products. ...
The overall picture is one of transformation; to demonstrate to its staff and shareholders that ICI can adapt and change as necessary in an environment of both local and global uncertainties. ... ICI started this process of adjusting its products’ portfolio in 1997 with the £4. ... These major acquisitions have resulted in the ownership by ICI of over 400 businesses in 55 countries that are involved with the administration, manufacturing, sales and research of ICI products. These companies are what make up the four specialised businesses that form the core of ICI. The names of these business units are: National Starch and Chemicals; Quest International; Uniqema; and ICI Paints. ... These, along with their percentage of ICI’s total sales in 2002, are:
1) Decorative and architecture – 36%
2) Diverse industrial – 17%
3) Food and beverage – 16%
4) Personal care – 13%
5) Paper and packaging – 11%
6) Electronics – 4%
7) Construction – 3%
The developments that have happened to ICI since 1997, as promised in the AGM report at that time, show that the company has come a long way in its transformation.
Approximate Word count = 1819
Approximate Pages = 7.3
(250 words per page double spaced)
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