Review of Matthew Bellamy on a Multinational Company Polymer - Book Report/Review Example

Book Review Matthew J. Bellamy, Profiting the Crown: Canada’s Polymer Corporation, 1942-1990 (McGill-Queen’s Press, 2005) Abstract This paper discusses the insightful review of Matthew Bellamy on a multinational company Polymer that began while Canada was in duress and in dire need of rubber that had been cut off due to World War II. The paper discusses some of the most insightful decisions that the Canadian government made concerning the company that makes it viable to date. Bellamy sheds some light on government interference when it comes to management of business. According to Bellamy, the company survived since it managed to operate on the forces of demand and supply. Bellamy also looks at some of the rough times that the company underwent but still managed to emerge as a strong multinational company able to compete favorably with the US, which had some of the strongest and the best rubber companies in the world. Bellamy presents the book in a logical and sequential manner with substantial arguments. There is also an in-depth analysis of Polymer Corporation and its succession. The government’s role in the company is also widely speculated and emphasized by Bellamy. Introduction Profiting the Crown written by Matthew Bellamy is an interesting book covering a Canadian rubber company, the Polymer Corporation. The company, established in 1942, was the main sole producer of rubber in Canada. The government of Canada fully funded a major company in this time of duress. The company came into operation at a time when the country was suffering from the effects of World War II and needed to supplement the rubber after the oversees countries experiencing the war stopped exporting rubber. Canada, as per the time, relied mostly on other countries for most of its resources, including rubber. The company was opened in Sarnia, Ontario, fully funded by the Canadian government. Canada was in collaboration with the US as war partners and, therefore, had to contribute to America in return for protection during World War II. Canada was to supplement America with synthetic rubber while America played other major roles in protecting the two countries. The rubber products were used in manufacture of various war equipments that were quickly diminishing due to the war. The preface of the book contains the background information about Polymer Corporation. The key objectives are also mentioned in the book in the preface. One of the major objectives is to determine the role and challenges that politics and government policies offer to such companies. In chapter one of this review by Bellamy, a brief history of Canada is mentioned as well as its dependence on resources from other countries. This kind of dependence is what led to the formation of the company after foreign supplies had been cut off due to World War II. Rubber was a major input material that was used in the automobile industry, but Europe failed to see its importance and, therefore, neglected its production. Most of the European countries depended on East Asia for production of rubber. Japan was producing almost half of the world’s rubber during this time before it was engaged in war. In chapter two, Bellamy talks about the insightful formation of the company after the American attacked Japan in World War II. Japan was a major supplier of rubber as per that time. Under the hand of President McKenzie, the firm was established at a cost of $50 million. Bellamy discusses the company’s head of department of munitions and supply manager and his role in propelling the company past the post-war era. His ability to make wise and swift decisions is greatly praised by Bellamy since without him, government domineering would have led to the closure and eventual collapse of the company a long time ago. Bellamy raises the question of the company’s objective after the war since its inception was to deal with local demand and to supply the US with rubber during the war period. During this particular time, the quantity of rubber produced was more important than the quality, asserts Bellamy. In chapter three, Bellamy poses three challenges that faced the company after the post war period. One of the challenges was the lack of marker for its products, especially that the war was over and the US did not require their share of rubber agreement. The demand was low but the company had to keep its production. The second challenge the company faced at this particular time was a corporate strategy to ensure their propagation after post war period. The third challenge posed by Bellamy is the lack of a proper organizational structure that would successfully orient the company in the post war period. Bellamy further highlights another challenge of competition due to the government removing control and protection it had originally offered to the company. This meant that the company was more vulnerable to competition both locally and internationally. As already mentioned above, wise decisions made by C.D Howe rescued the company from collapsing. Howe managed to establish a strong research and development company to help in researching and locating market for their products. Despite this effort, the company still performed poorly domestically, argues Bellamy. During the 1950’s, the company opted to supply construction companies, which gave the company a good income. Bellamy points out in his review the autonomy of the government policies that inhibited the growth and expansion of this company during this time. In 1951, the company managed to change its organizational structure and terminated most of its operations with other companies, giving it a chance to survive as a free industrial enterprise. Bellamy also points out the key role of the government’s decision to relinquish its shares to the Polymer Company; however, the government maintained the shares in form of stock. According to Bellamy, this was a bright move since it sheltered the company from political influence that affected the country during those times. Most of the opposition parties attacked the company, but since the government had made its move, the company was safe to continue with its operations without political influence. In chapter four, Bellamy discusses various changes that gave the company success that it experiences to date. The changes in technology, social, managerial, and market approaches are amongst some of the alterations that led to its success. The shares of this company in the automobile companies of North America and Europe increased. The company began to expand and flourished in its earnings. The company at this time realized the need to expand and open its braches to other foreign countries. Two problems were faced by this company, as Bellamy asserts. One was the capital required to do the expansion and open branches in Europe and America while the other problem was whether to make the company a private corporation. The government had a bigger decision to make, and they made it wisely. The government did not leave the company in the hands of private organizations for fear of exploitation, foreign dominance, layoff of its workers, and cases of corruption and eventual collapse. The government authorized expansion of the company. According to Bellamy, this was a good move, but eventually 15, 000 workers were laid off to compensate for the money used in the expansion. Part of the department was also transferred to the new plant that was being opened. The government’s move was ironic due to its protective nature over its local industries. The company flourished at these times due to massive production of cars that was in high demand in foreign countries, especially in Europe. In his review, Bellamy mentions that the following two decades (1960’s-1970’s) did not profit the company in any way since the company engaged in unrelated lines, which saw it make losses; hence, it was not able to compete effectively with other companies. Bellamy argues that the diversification to Stressed Structures Inc. and Comshare High Tech Industry made losses and did not survive due to lack of proper research. Polymer’s association with Canadian Development Corporation further led to its woes eventually leading to the sale of the company to private investors. In the 1980’s, the company opted to shift from diversifications and concentrate in development and research. The company opted to concentrate in production of synthetic rubber, according to Bellamy. The company continued exploring technological advancement and geographic expansion. Polymer came into sale after its mother companies faced various problems. According to Bellamy, the sale of polymer to A.G Bayer is ironical since he was involved in various research activities back in the 1940’s, not forgetting that he was a German and not a Canadian. Bellamy gives credit to Howe, who successfully led this company until the government bought it back in 1971. The government bought this company through Canada Development Corporation, which later renamed it to Polysar Rubber Corporation in 1976 due to the company’s subsidiary involvement in production of polyurethane. In 1988, the company became a private company after being sold to NOVA Corporation. Bellamy gives credit to Polymer’s success to good timing and strategic opportunism. The back cover of the book contains the biography of Bellamy. Canada and the cost of World War II is also another great work by Bellamy. Bellamy is an associate professor at the University of Carleton. His areas of specialization include business, political, and economic history. He has been awarded with Capital Educators Award in 2009. His book Profiting the Crown received a National Business Bok Award in 2006. Commentary The book is well articulated with simple English. The book is organized logically from one chapter to another. The book begins from introduction to the final point. Every event involving Polymer Corporation is well highlighted. This review offers an in-depth revelation of the influence of government on the corporation. The book might pose a problem to people who are not natives, but readers who are native speakers find this book more interesting. The book highlights government’s role and how it affected the company’s policies. Generally, in conclusion, Bellamy succeeds in bringing out the pros and cons of Canada’s most successful industry for the last 50 years. The book also offers a sharp contrast between American industries and the Polymer Corporation. American industries must share their findings in research and expansion while Polymer enjoyed the sole advantage of research and expansion. Any interested political and economic scholar will definitely enjoy this book since it reveals good details from history and technological innovation. In terms of decision-making, the book also offers insights and gives good guidelines on how to make good decision at the right time and protect the legacy of a company. Despite a lot of success of the Polymer Incorporation, the book also brings out the challenges that the company underwent to still emerge among the most successful companies 50 years ago. It criticizes the government when it comes to C.D Howe, who did a critical task of directing the company in the right direction during the tough times. Howe is not rewarded by the government for the commendable job. It also criticizes the government for plunging the company into losses after acquiring it in 1971 and selling it to the Canadian Development Corporation, a company owned by the government. This gave the government the power to influence the management and control of the company. However, despite the fact that government made some faulty decision, this is not a valid reason to deter investors from investing in Canadian corporations. This review offers an insightful view and guides in overcoming challenges. The book also highlights the consequences of good decision-making. Read More