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What is Nova Chemical’s strategy? How do the various divisions relate to the firm’s overall strategy?

Industry analysts are expecting high growth rates for specialty chemicals of 10-15%. As a result, Nova Chemical has a 5 year strategy that focuses on development of the company’s two specialty chemicals divisions: the Laboratory Products Division (LPD) and, more substantially, the Environmental Products Division (EPD). Investment will focus on the company’s EPD division through expansion of new production facilities. Doing so will require the company to consider alternatives in annual financing to handle the sharp increases in needed capital spending. One alternative includes the sale of Nova’s Industrial Products Division which makes non-specialty, basic chemicals. Due to the commoditized nature of basic chemicals, profitability of such is low and is expected to continue to experience downward pricing pressure for the foreseeable future. Despite the fact that......

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Approximate Word Count: 967
Approximate Pages: 4 (250 words per double-spaced page)

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