Basf (baden Aniline and Soda Factory)

Business Policy

Assignment 2

Strategic Analysis

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Submitted By

Prathamesh Narkar

PGDM IB (2016-18)

Roll No. 37

BASF (Baden Aniline and Soda Factory)

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Introduction:

BASF SE is a German chemical company and the largest chemical producer in the world. The BASF Group comprises subsidiaries and joint ventures in more than 80 countries and operates six integrated production sites and 390 other production sites in Europe, Asia, Australia,the Americas and Africa. BASF was established in 1865. Its headquarters is located in Ludwigshafen, Germany. BASF has customers in over 190 countries and supplies products to a wide variety of industries. Despite its size and global presence, BASF has received relatively little public attention since it abandoned manufacturing and selling BASF-branded consumer electronics products in the 1990s. BSAF has an Indian subsidiary called BASF India

At the end of 2016, the company employed more than 122,000 people, with over 52,800 in Germany alone. In 2016, BASF posted sales of €70.4 billion and income from operations before special items of about €6.7 billion. The company is currently expanding its international activities with a particular focus on Asia. Between 1990 and 2005, the company invested €5.6 billion in Asia, for example in sites near Nanjing and Shanghai, China and Mangalore in India.

BASF is listed on the Frankfurt Stock Exchange, London Stock Exchange, and Zurich Stock Exchange. The company delisted its ADRfrom the New York Stock Exchange in September 2007. The company is a component of the Euro Stoxx 50 stock market index.

Current annual turnover with business-wise and country-wise break up.

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Distribution of revenue by region

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Strategic fit of businesses:

In about 70% of its businesses, BASF has a top three market position. They will add new specialty and solutions businesses through its innovation pipeline as well as acquisitions. They will, however, also continue to look for better owners of businesses that only provide a low strategic fit.

Since 2010, they have divested businesses with sales of about 21 billion Euro and bought higher value-added businesses with sales of 5.5 billion Euro.