BOREALIS Harvard Case Solution & Analysis

Borealis

Value chain diagram for Borealis:

                  

  • 1.      Inbound logistics includes the process of holding raw materials, transportation charges of bringing raw material of Borealis Company.

  • 2.      Operations include the core process of borealis of making polyolefin’s after converting raw materials into work in process.
  • 3.      Outbound logistics includes the process of converting raw material into polyolefin’s (finished goods) and now it’s time to send this product into market. For example carriage charges to send finished goods into the market.
  • 4.      The third point is marketing and sales process which includes the making advertisement of their products although borealis facing advertising difficulties but this process also includes enhancing the company’s by different means.
  • 5.      Services includes the after selling products services although Borealis products are not in nature which requires after sale services.

Polyolefin (Product) Value Chain Analysis:

The analysis of value chain includes the headings which are relevant to the polyolefin.

Inbound Logistics:

This product requires the different type of resources like Oil, natural gas etc., however these two are main inventory for producing polyolefin and holding cost of these inventories and bringing them in warehouse process held in the heading of inbound logistics for Borealis Company. Although holding cost of these types of inventory usually very costly.

Operations:

The production process of the polyolefin describes the operations heading, although production process includes the multiple steps, first is making the distillation of inventory (Oil and gas), secondly the crushing out the larger molecules of polyolefin into smaller molecules, third and last the making of molecules of larger chains at plant.

Outbound Logistics:

                                   It includes the delivery of polyolefin or plastic products to their customers, the process of transferring the product by Borealis Company is known as outbound logistics.

Marketing and Sales:

Although market related to this industry sometimes become depressed therefore Borealis needs to expand their process of making more sales through different means, however under the heading the polyolefin sales growth and its demand lies. Recently short-term market of the product declines due to the reduction in inventory because of reduction in the prices of inventory.....................

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