Dow Chemical Business Analysis

2076 words 9 pages
Who Founded Dow Chemical Dow Chemical Company, and American Chemical and Plastics manufacturer is one of the globe’s prominent suppliers of chemicals, plastics, synthetic fibers, and agricultural products. Dow Chemical was originated by Chemist, Herbert H. Dow, of Midland in 1897. Dow was to support Midland Chemical Company in 1890 and the Dow Process Company of 1895(Dow Chemical Company, (2012)).
What is a SWOT analysis? What does a SWOT analysis deliver in regards to organizations; it is a tool that categorizes the strengths, weaknesses, opportunities and threats of an organization? Once the SWOT is completed, it can determine what the firm can do in completing its objectives and what other accomplishments it can achieve to
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Dow enlarged its R&D expenditures for emerging new commodities.
Weaknesses
Fluctuating cash flow
Dow has not been able to produce steady cash flow from its processes. The organization listed deterioration in each different year. Cash flow from the processes of the organization is moved from $2,108 million in 2002 to $3, 780 million in 2003. Afterwards, it began to take a downfall to reach $2,670 million in 2004 and then to increase to $4, 474 million in 2005. Once again, in 2006, it deteriorated to lunge to $4,154 million. In 2007, the cash flow amplified to $4, 484 million. Furthermore, shifting cash flow could hurt the organization’s development tactics (Datamonitor, 2011).
Fluctuating profits
Although this company has not been able to make a steady income from its processes, the organization has recorded variations in its proceeds, showing deterioration in every different year. Functioning incomes of the corporation was chronicled at $2,971 million in 2004; it improved to $5,999 million in 2005; and degenerated to $4,267 million in 2006. In 2007, the functioning revenue reduced to $3,567 million. The functioning boundary also improved since 7.4% in 2004 to 13% in 2005 and weakened to 8.7% in 2006. In 2007, the functioning boundary has more reduced to 6.7%. Likewise, the remaining incomes improved from $2,797 million in 2004 to $4,515 million in 2005, and then it weakened to reach $3,724 million in 2006

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