Great Lakes: Great Decisions - Research Paper Example

In developing countries, people usually have low levels of income therefore, cannot afford vehicles with unleaded gasoline. Great Lakes will continue to make lead additives to meet the increasing demand. However, when the developing countries will become developed, then there are fair chances that Great Lakes would have to bring the production of toxic tetraethyl lead (TEL) to halt. Technological: A great portion of Great Lakes revenue comes from the developing countries where people are still using lead gasoline in their vehicles.

When these countries will finish the journey from developing to developed countries, there is a great possibility that Great Lakes will have to close its gasoline production all together. However, in order to stay in competition, it must consider investing in technology and procedures in order to manufacture less toxic chemicals. Technically, Great Lakes can also consider investing in refineries in the developing countries. Economic: Great Lakes profits will be affected dramatically when developing countries will replace leaded gasoline with lead-free gasoline. . If Great Lakes start applying safety and environmental rules, it is likely that its profits will fall down.

However, it can consider producing chemicals with low toxicity. Political/Legal/Governmental: If Great Lakes do not terminate the manufacturing of lead additives and keeps ignoring environmental laws, there are chances that government will be involved and serious measures taken against the company. Great Lakes can also get its license cancelled if it keeps neglecting the laws regarding leaded gasoline production and distribution. 2) Analyze the lead additives industry in the U.S. using the Five Forces of Competition Model.

Describe the impact of each of the five (5) forces on the industry and based on this analysis, determine if the industry is attractive or unattractive. In order to study the degree of attraction of the industry and the intensity of competition, we need to analyze the Porter’s Five Forces model. Threat of New Entrants: As soon as nations switch to unleaded gasoline, Great Lakes will have to shut down its lead production permanently. Because of the awareness of the destructive effects that lead can cause to our health, no organization intends to invest in lead additives.

There is a healthy possibility that developing countries will stop sending import orders for lead thus, pushing away new investments. Bargaining Power of Suppliers: Companies in the chemical industry are producing less harmful fuel and also there is pressure from the environmentalists to put off lead production. This leaves Great Lakes to be the sole supplier of lead. Therefore, we can say that the bargaining power of suppliers in this case is high.