give an example of one company that has been impacted by reputational or credibility pressures to change? were they able to avoid or minimize damage to their reputation?

The ARCO chemical company had been impacted by external environment and internal organizational pressures to change to global business. It is necessary, because the ARCO Company has been loss profit too quick from $3.5 billion annually to $1.5 billion in the 1980s; by under the external environment pressure, they were start to go through globalization, however, the customers were global. ACRO chemical was able to increase sales. In 1992, the sales increases more than 40% of ARCO’s $3 billion were made abroad. In the past, this company’s exclusively to Detroit’s big three in the U.S market. Today, ARCO chemical sells to Nissan, Toyota, and Honda in Japan, the United States and Europe and so on. Also, it deals with ford and general motors in the United States and Europe.

When went to the global market, it facing the bigger competitive challenge, such as competitors Dow Chemical in U.S; Europeans companies have expanded operations in America, and Japanese competitors began to attack ARCO chemical’s business lines. However, ARCO jointed ventures and strategic alliances; they were stealing of one Asahi’s biggest customers in Japan. Also, ARCO’s joint venture partner, Sumitomo chemical, supplied competitive intelligence and its knowledge of the Japanese market.

ARCO chemical was acquired by Lyondell Petrochemical in 1998; it made the Lyondell’s desire to expand into high-growth global markets for ARCO’s products, as well as the opportunity to gain significant integration benefit with Equistar Chemicals, LP, and so on. The consolidation is a positive trend to enhance the efficiency of the industry. It will increase globalization and competition, which benefit both customers and investors.