Jacobs Division
Introduction
MacFadden Chemical Company is among the largest chemical firms
around the globe. From the year 1980 till the start of 1990’s, the sales of
the company was growing at a 10 percent rate. But, with the start of the
year 1993, the company realized a decline in its sales growth rate and
overall profit. The reason behind this decline was the overcapacity in basic
materials in the chemical industry that led to price cutting. Moreover, the
companies started to spend huge amounts on their R&D departments as
well in order to stay competitive in the market and for marketing purposes.
MacFadden Chemical Company consisted of eleven operating divisions
that were categorized in three groups. One of its newest divisions, ‘The
Jacob Division’, is the smallest division and unlike other divisions, its
products are centred on a single core material. The focus of The Jacob
Division is on the speciality industry products like dyes, finishes, and
adhesives. It manufactures and sells around a hundred and fifty basic
products that come with variety as well. Also, unlike other divisions, the
sales of The Jacob Division are done in small lots. Most of its products
have a sale of around 500,000 dollars. The Jacob Division is one of the
fastest growing divisions of MacFadden Chemical Company.
