BASF Growth

Paper Summary:

This paper discusses BASF's growth strategy of expansion, competition, and aggressive growth. It describes its strategy of focusing on non-cyclical portions of the company's markets and how this is able to sustain consistent growth, even in periods of economic fluctuation. The paper begins by discussing the concept behind non-cyclical product development and then applies it to BASF's growth strategy.

From the Paper:

"There can be no question that BASF uses its non-cyclical products as a mainstay of growth, as can be seen through a comparison of the divisions' revenue in 2002. In total, oil and gas sales in 2002 were higher than in any other BASF division (BASF, 46). In comparison, the sales of agricultural products, typically cyclical in nature, were the lowest in the same year (BASF, 43). Additionally, in 2000, BASF announced their intention to increase their market share of non cyclical products, which they have consistently done (Milmo, 85). By focusing on non-cyclical portions of the company's markets, BASF is able to sustain consistent growth, even in periods of economic fluctuation, provide consistently strong revenue, and increase research, development, and expansion for future growth prospects."

Sample of Sources Used:

• BASF. Annual Report 2002. Germany: BASF Aktiengesellschaft, 2002.
• BASF. "About Us." BASF: North America. 2006. 12 Dec. 2006. <http://www.basf.com/corporate/aboutbasfindex.html>.
• BBC News. "Finland's Paper Strike Rumbles On." 23 June 2005. 12 Dec. 2006. <http://news.bbc.co.uk/1/hi/business/4124040.stm>.
• IAL Consultants. Polyurethane Additive Markets in Europe, Middle East and Africa. United Kingdom: Business Research Group, 2006.
• Investopedia. "Cyclical Versus Non-Cyclical Stocks." Investopedia. 28 Aug. 2000. 12 Dec. 2006. <http://www.investopedia.com/articles/00/082800.asp>.

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