Buckman Laboratories

1. DISCUSS THE HISTORY OF THE COMPANY IN THE CASE

 Founded in 1945 by Dr. Stanley Buckman

 Buckman started the company in Memphis, Tennessee, with five employees in a small building located on land that was once a lumberyard.

 Offices and laboratories were located on the first floor of the building, and a 50-gallon black iron chemical reactor and a steam boiler were placed in the basement.

 The 50-gallon black iron chemical reactor was sufficient to supply the initial order for 20 gallons of a microbicide, trade name BSM-11, to the company's first customer Ð'- Whiting Paper Company.

 Three years later, BSM-11 and its derivatives had become the industry standard for microorganism control.

 Soon a new production facility was built next door and Buckman Laboratories of Canada was formed.

 During the 1950s, the company's customer base expanded to include the leather, paint, sugar processing, agriculture, paint, coatings and plastics industries.

 During the 1960s, new manufacturing and sales companies were formed in Mexico and Belgium.

 The expansion during the 1970s followed with the opening of sales and manufacturing companies in South Africa and Brazil and a sales company in Australia.

 New products were introduced for water treatment, ranging from swimming pools to fresh water, and a new international headquarters housing all corporate activities, including Research and Development, were built in Memphis.

 In 1978, Dr. Stanley Buckman died of a heart attack in his office

 His son, Robert (Bob), became the new chairman and CEO.

In 1945, Buckman Laboratories started with one product, a 50-gallon process vessel and four employees in a small house in Memphis, Tennessee. Today, Buckman is a global business producing over 500 different products and employing over 1,300 people in over 70 countries. The company was originally founded on its unique ability to create and manufacture innovative solutions for controlling the growth of microorganisms. Ever since its inception, Buckman believes that a specialty chemical supplier should listen to and anticipate customer needs and then respond with innovative and unique solutions. Buckman will continue in the future as it has in the past providing value-added services and products to improve the efficiencies and products.

2. PROVIDE A SHORT DISCUSSION OF THE KEY MANAGEMENT OF THE COMPANY. DISCUSS BELIEFS, VALUES, AND PHILOSOPHIES OF THESE INDIVIDUALS. DISCUSS WHY THESE ARE IMPORTANT IN UNDERSTANDING HOW THE COMPANY OPERATES OR WHY THE COMPANY IS FACING A DECISION OR A PROBLEM IN THE CASE. ALSO DISCUSS THE TRAINING, EXPERIENCE OR BACKGROUND OF THE KEY MANAGEMENT INDIVIDUALS THAT ARE SIGNIFICANT TO THE CASE.

Dr. Stanley Buckman

Dr. Stanly J. Buckman, a microbiologist and biochemist, founded the worldwide Buckman organization in 1945 in Memphis, Tennessee. He believed that basic research, combined with knowledge of industrial processes and technology, could produce innovative chemicals to solve industry problems. Prior to his heart attack in 1978, Dr. Stanley's management style reflected one of a micro manager. Twenty-six people reported directly to "Dr. Stanley," creating a bureaucratic, less responsive organization.

Robert (Bob) Buckman

Becoming the new chairman and CEO of Buckman Laboratories after his father died of a heart attack in 1978, Bob was faced with many challenges and an evolutionary change in the business world. From the beginning of his leadership, Bob wanted to change the way the company operated. As he put it, "We were getting our lunch eaten. We were a multinational organization and needed to be a global organization." In the process, Bob wanted to change the management style of the organization. "I knew I didn't want to do it Dad's way. Every single business decision had to be approved by my father. I thought this is too much work." Even though the company had adopted the slogan "Creativity For Our Customers" in the 1960s, Bob was convinced that the company was too product-driven. Bob wanted the company to become "customer-driven." This shift reflected Bob's belief that "cash flow is generated on the front line with customers, by associates who have built relationships of continuity and trust, face to face with the customer, one individual with another, over a significant length of time."

3. ASSESS THE COMPETITIVE SITUATION IN WHICH THE COMPANY FINDS ITSELF IN THE CASE.

Strengths:

Ð'* Global leverage due to their international status

Ð'* World leader in the area of machine hygiene

Ð'* Competitive advantage to sharing knowledge with a system that they revolutionized in making them a industry leader (K'Netix)

Ð'* Employees have an incentive to bring knowledge to the table through monetary awards

Weakness:

Ð'* As size a strength, size can also be a weakness

Ð'* English was the dominant language for the website

Ð'* Non regulation of the site leading to "useless and irrelevant" knowledge

Ð'* CEO regularly reviewed traditional financial measures for the company but dismissed using them to evaluate K'Netix.

Opportunity:

Ð'* Rules and regulations for utilizing K'Netix

Ð'* Multilingual websites to accommodate the different languages around the globe

Ð'* Increase customer base through "customer intimacy"

Ð'* Revamp the company's mission statement to reflect the company culture

Threats:

Ð'* Other companies getting word of the success of K'Netix and making the