Assignment 1: Case 11: Great Lakes: Great Decisions - Essay Example

Over exposure to lead is said to cause increased blood pressure, hypertension and a higher risk of cardio-vascular disease. Children are adversely affected by lead and in developing countries where leaded gasoline and leaded paint is still being used a significant percentage of children from age zero to five have blood lead levels that exceed World Health Organization (WHO) standards. In the mid 1990’s it led to numerous strokes, heart attacks and premature death of adults and children in Egypt.

Technological The slow pace at which technological changes are taking place in developing countries has contributed significantly to Great Lakes continued viability. The developing countries do not have enough refineries that are capable of producing unleaded gas. Additionally, many of the cars being used have no catalytic converters. Economic Factors The banning of the use of lead additives in the U.S. has affected the sales of TEL which Great Lakes produce. The company’s only market is in developing countries. . The company will remain viable until the developing countries see the benefits of a speedy conversion to unleaded gasoline or companies in those countries decide to produce the additive themselves.

Octel Associates is the most successful of Great Lakes subsidiaries since it has accounted for well over half of Great Lakes total operating profit each year. This has been so despite the fact that its main product has been banned in the US and other developed countries. Environmental/Geographic Lead has damaged the quality of air. Octel Associates which is one of Great Lakes subsidiaries is a producer of the lead additive, TEL. Lead additives are banned in the United States and most developed countries and though it is still being used in many developing countries environmentalists are pressuring Great Lakes to stop producing it.

This would have a significant impact on the company’s profits. It would also negatively affect countries that have not yet transitioned from using leaded to unleaded gasoline in their cars and machinery. In the 1990s the United Nations Conference on Environment and Development which is commonly known as the Rio de Janeiro Environmental Summit called for the world-wide phasing out of lead.. Political/Legal/Government Factors Leaded gasoline has been banned in most of the developed world but many developing countries have not yet eliminated lead as an additive because there are no government regulations preventing its use.

The Energy Tax Act of 1978 has provided ethanol tax incentive in order to encourage and expand the use of ethanol in the U.S. In 2000 the European Union (EU) banned the use of leaded gasoline Question 2 Analyze the lead additives industry in the US using the five forces of competition model. Describe the impact of the five