This is a consulting package for DowDuPont Merger and Acquisition.

1. Dow: Breakthroughs to World Challenges
Yuuki KPA and Anh Do

2. 1. Key Recommendations
2. Executive Summary
3. Approach
4. Detailed Recommendations
1. Recommendation I
1. Problems and Impacts
2. Solutions & Recommendations
3. Implementations
2. Recommendation II
1. Problems and Impacts
2. Solutions & Recommendations
3. Implementations
5. Conclusions
6. Appendices
6.1 Appendix 1: PESTEL
6.2 Appendix 2: SWOT
6.3 Appendix 3: Financial Information
7. Citations
Table of Content
Page 2

3. Key Recommendations
I. Research on stakeholders’ post-merger
reactions regarding sustainability
II. Develop strategies to retain talents and
share knowledge and resources
Page 3

4. Executive Summary
DowDupont currently has two sets of sustainability goals: Dow’s 2025 Sustainability Goals and Dupont’s 2020
Sustainability Goals, addressing different areas. Post-merger reorganization of the sustainability goals is vital so
DowDupont as a merged entity can best reallocate resources to enjoy the merger synergies. To formulate the
best sustainability strategies, DowDupont needs to reconcile three forces: the overall end goal or desired
synergy obtained from the merger*; what stakeholders want from the merger, how their reactions change and
the implications of these changes on their expectations; and what information, knowledge and resources are
now available to both companies, and their research, development and production potentials. Our
recommendations center around research initiatives to understand and anticipate stakeholders’ post-merger
reactions, which will help DowDupont reformulate sustainability goals; and leverage existing resources to
secure the means to achieve the goals.
*These are Dow and Dupont’s visions and purposes of the merger, which is assumed in this report as having been clearly recognized
and effectively communicated to all DowDupont’s management and employees.
Page 4

5. Core Problems
DowDupont’s biggest problem regarding sustainability efforts is currently having two sets of sustainability goals:
Dow’s 2025 Sustainability Goals and Dupont’s 2020 Sustainability Goals. These two goals have their similarity
and differences. As the two companies merge into one Holding, having separate sets of goals based on their
previous names does not highlight the desired and promised post-merger synergies, since the separations imply
two companies are not working together. It is important for the DowDupont Holding to have either one set of
goals for the entire Holding, or three sets of goals for the three smaller companies you intended to create under
DowDupont Holdings, or other options that don’t involve splitting the goals by the pre-merger entities.
Page 5

6. Approach
The merger largely changed the external and internal factors affecting DowDupont’s sustainability efforts.
We approached the problems through a thorough environmental and internal analysis of DowDupont after
the merger. We also studied scholastic research and advice from consulting firms regarding post-merger
integration, and applied the ideas and knowledge to DowDupont’s sustainability efforts.
We used the PESTEL model for external analysis and the SWOT model for internal analysis to assess these
factors and understand how impactful each of them are. The report is build upon the AFI model as we first
Analyze the problems, the Formulate the strategies, and finally build a plan to Implement the strategy.
The recommendations and implementation steps mentioned in this report are theoretical and brief. We must
first know the desired synergies of DowDupont’s merger, whether it’s cost synergies or growth/revenue
synergies. After analyzing the industry, we realized that DowDupont needed both synergies. With the most
updated combined financial situation, and the merged entity’s budget for sustainability, we can give
consulting advice on which synergies to choose. We would need to follow up with the company’s own
market research, results of the information system upgrade, interviews with employees, the chosen culture,
etc. More detailed consulting advice could be formulated with these pieces of information.
Page 6

7. I. Research on stakeholders’ post-merger expectations regarding sustainability
A. Problems and Impacts
In a McKinsey’s article, Gryzwa, et al stated “during post-merger integration (PMI), the stakeholder landscape is
becoming more difficult to navigate,” meaning post-merger research for changes in stakeholders’ expectations is
essential. External stakeholders may form new sets of expectations towards DowDupont, the merged holding, with
some remain the same, brand new ones added and old ones removed.
Page 7
These changes impact DowDupont as a whole, and the merged entity sustainable efforts. Here are a few possible
changes via the PESTEL analysis for us to see the impacts (refer to Appendices 1 and 2 for more complete analysis):
● Political and Legal: DowDupont agreed to a new set of regulations upon the success of the merger;
government may set even stronger sustainability targets to DowDupont. Government will expect more from
them regarding to the protection of the environment.
● Social: Consumers may expect more from sustainability efforts following DowDupont’s major merger since
they care about the environment tremendously.
● Economic: External shareholders or activist investors play an increasingly stronger role in shaping post-
merger businesses. For example, Third Point, one of DowDupont’s investors, already sought to split
DowDupont Holdings into six smaller companies, and you negotiated for three, “with a transfer of products
representing approximately US$8 billion of revenues from the materials products business into the specialty
products business” (Deloitte, 2018). Other similar demands can arise, and can result in major reallocations of
sustainability resources.

8. I. Research on stakeholders’ post-merger expectations regarding sustainability
B. Solutions and Recommendations: Conduct thorough market research
According to Kato and Schoenberg (2013), “a more complete understanding of what determines acquisition
performance is only likely to come when the impact on all salient stakeholders is considered,” which calls for
thorough reassessment of stakeholders demand and expectations post-merger.
Page 8
Before searching for new ideas and innovations for more sustainable production,
DowDupont should conduct market research to capture any changes in the
internal and external factors affecting the merged entity. You could use primary
and secondary sources for your research. After you got the information and data
from your research, you can bring in their internal team to discuss your plans and
strategies regarding to post-merger expectations.
Furthermore, the results of these research projects can help DowDupont be
proactive when facing new demand from external stakeholders.

9. I. Research on consumers’ post-merger expectations regarding sustainability
C. Implementations
DowDupont should first reassemble a list of stakeholders, and rank them in terms of their power and influences on
DowDupont’s business. Before ranking, it’s essential to highlight which stakeholders are the same between the two
companies, and which previously only belong to one.
Secondary exploratory research based on case studies of stakeholders’ reactions to previous mergers and
acquisitions (M&A) efforts should be conducted to formulate hypotheses potential reaction to the merger.
Page 9
Primary research (such as interviews, focus groups, surveys) should be conducted to the most
powerful stakeholders so DowDupont can confirm or reject the hypotheses, and have a
clearer, more direct view of the changes (if exist) in stakeholders’ expectations post-merger.
For customers alone, this can also be a great attempt to reach out to them and reassure them
of the quality and number of choices they still have, despite the merger; and prevent them from
switching to competitors. These are problems identified by BCG (BCG, 2018).
Note: Not to fall under confirmation bias is of quintessential importance. It’s very easy to form a
hypothesis that nothing changes, then design the research to prove exact that. A fair research
design will not only yield useful results that help DowDupont find its long term direction, but
also prevent future passive responses to problems that could have been anticipated.

10. While knowledge sharing is highly desired for effective integration (Faulkner et. al, 2012), the merger makes
information sharing between two organizations harder due to “the lack of shared context and mutual knowledge”
(Heo and Yoo, 2002). This is one of DowDupont’s post-merger weaknesses and since it is still in the beginning
phase of of the merger which added problems to their post-merger efforts.
Page 10II. Develop strategies to retain talents and manage knowledge
A. Problems and Impacts
Challenges facing the chemical industry include managing toxic wastes and high carbon
footprint, as well as the need to sustain local jobs and conserve natural resources such as
soil and water (Porter et. al, 2017). Having higher expenses than competitors (Appendix 2)
means DowDupont must soon create the synergies from shared resources.
Furthermore, two research teams from two companies come from two different cultures that
will need time to assimilate and collaborate smoothly. Both teams are competent, and their
tremendous land and capital resources for research and development are a few of their
strengths (Appendix 2), but if they cannot work together, DowDupont will not be able to
mitigate its existing weakness: having high expense.
“During a merger, a company risks losing key personnel,” according to BCG report on Post
Merger Integration, since the uncertainties following the merger make employees question their
future at the company (BCG, 2018). Success in sustainability efforts depend on a good team of
researchers and product developers, whose skills are transferable to competing companies and
other industries. Hence, it is more difficult and important to keep these imperative and specialist
talents in the new merged entity. This is a post-merger threat facing DowDupont (Appendix 2).

11. II. Develop strategies to retain talents and manage knowledge
B. Solutions and recommendations
For information sharing, DowDupont should allow information and research data to
be shared between research teams from both companies. This step is the process
of sharing knowledge on how that will advance current research and allow
allocation of resources between two companies that will eventually improve
efficiency and reduce cost (Jen-te, 2007).
Page 11
Culture assimilations between the teams can start fostering an understanding the differences in
cultures, then figuring out the desired culture (BCG, 2018). Dow and Dupont both had very high
expenses compared to competitors before the merger (Marketline, 2017). DowDupont needs the
economies of scales to reduce cost. Having different teams working on similar tasks concurrently
can be highly inefficient and counteract the economies of scales to be grasped from the merger to
reduce cost (BCG, 2018). Culture assimilation efforts are also communication initiatives that
assure employees of the fairness and transparency of the merger.
To retain talent, financial bonuses can be employed to “align employees with the goals of
the PMI” (BCG, 2018). Tying the bonuses to a performance metrics can motivate employees
and create a clearer picture of the “future in the company” that they want to see.

12. II. Develop strategies to retain talents and manage knowledge
C. Implementations
Information Management:
Information systems should be reorganized to facilitate sharing of information across departments from both
companies. All researchers and employees should read about the other teams’ sustainability efforts and related
research to get a profound understanding of each other “strategies and plans.”
Note: avoid assuming that some information is common sense or taken for granted (Jen-te, 2007).
Page 12
Culture Assimilation:
First, norms, values, and culture artifacts should be communicated clearly
between the teams. The teams then identify the differences in their cultures
and prioritize which ones are relevant to the new culture of DowDupont as a
whole. Everyone must agree to these new values.
Talent Retention:
Communicate with researchers and sustainability efforts employees to
figure out what they need. Formulate a bonus strategy for these employees
based on their needs and concerns.

13. Conclusions
DowDupont currently has two sets of sustainability goals: Dow’s 2025 Sustainability Goals and Dupont’s
2020 Sustainability Goals, addressing different areas. As the two companies merge into one Holding,
having separate sets of goals based on their previous names does not highlight the desired and promised
post-merger synergies. To find out the right way to formulate new sustainability goals, DowDupont needs
to reconcile three forces: the overall end goal or desired synergy obtained from the merger*; what
stakeholders want from the merger, how their reactions change and the implications of these changes on
their expectations; and what information, knowledge and resources are now available to both companies,
and their research, development and production potentials.
The company can do so by simultaneously research the changes in stakeholders’ expectations, and take
steps to retain talents and facilitate information and knowledge sharing. By doing so, DowDupont will have
a higher chance of reaping the benefits of the merger, such as economies of scales, shared resources and
cost reductions, etc., while mitigating the effects of culture clash and unforeseen changes in stakeholders’
expectations.
Page 13

14. Conclusions
For strategy implementation, both primary and secondary market research should be conducted to
understand the market demand and anticipate changes in stakeholders’ expectations. Concurrently, pre-
merger Dow and Dupont should speed up the process of knowledge and resource sharing to optimize
research capacity and cultivate culture assimilation between research team from both companies. Plans
to provide financial incentives for employees should be formulated to retain the best talents in time of
post-merger uncertainty.
These strategies help DowDupont develop sustainability goals that align with stakeholders’ demand and
expectations, while reducing expenses and build better research teams for future sustainable innovations.
Page 14

15. Appendix 1 : PESTEL Analysis (focusing on sustainability)
Political
● Different environmental protection policies
between countries.
● Changes in expectations post-merger.
● Will get involved if not adhere to the
environmental regulations.
Economic
● Price fluctuations in oil and other raw materials.
● Low demand, stagnant growth.
● Stakeholders will have a say in the new
sustainability efforts.
Social
● The public will expect greener products from
this merger
● Want to purchase products from environmental
conscious companies
Technological
● Advancement in technology for specialties
and materials.
● Could help with their sustainability efforts in
the production processes.
Ecological
● Productions processes cause high carbon
footprint and toxic waste.
● Chemical production uses high energy and
natural gas consumptions.
Legal
● Different and complicated legal processes and
requirements between countries.
● Will get sued if not abided by the
environmental standards and expectations
Page 15

16. Appendix 2 : Industry Growth
This figure shows the
increasing trend in global
chemical market values
from 2013 to 2017.
However, during the period,
the Asia-Pacific has grown
by 5.5% while the US
market has grown by only
0.8%. The global market is
expected to maintain the
momentum in the next five
years, but that’s thanks to
the growth in Asia-Pacific
offsetting the slow growth
in the US market.
Page 16

17. Appendix 3: SWOT Analysis
Strengths
● Large scale production lowers cost,
allowing more resources for sustainability
● Excellent research teams experienced in
multiple areas
● Two companies’ resources and efforts
Weaknesses
● Dow and Dupont are pursuing separated
sustainability goals
● Employees are uncertain about their future
● Very high expenses compared to competitors
● Cultural clashes between two companies post-
merger
Opportunities
● Increasing in demand in Asia
● Ample supply of natural resources for
U.S. based companies
● A chance to build a purposeful brand to
attract and retain customers’ loyalty
Threats
● Decreasing global demand for commodity
chemicals
● Increasing influences from external shareholders
● Higher expectations post-merger regarding
reduction of energy needs, improvement of
process efficiency, compliance with environmental
regulations, and repurposing of existing products.
Page 17

18. Appendix 4: Financial information - compare with competitors
Page 18

19. Appendix 5: Financial information - compare with competitors
As shown in this figure, DowDupont
is not found in the top ten highest
income, but it is found on the top ten
highest revenue (previous slide). This
shows that the company has higher
expense than competitors.
Page 19

20. Citations:
BCG (2018). BCG on Poste-Merger Integration. Slideshare. Retrieved in April 29th 2018 from: https://www.slideshare.net/TheBostonConsultingGroup/bcg-on-pmi-a-
handbook-for-senior-executives
Deloitte (2018). 2018 Global Chemistry Industry Mergers and Acquisitions Outlook. Deloitte. Retrieved in April 29th 2018 from:
https://www2.deloitte.com/content/dam/Deloitte/global/Documents/Manufacturing/gx-global-chemical-report-2018.pdf
Faulkner David, Teerikangas Satu, and Joseph J. Richard. (2012). The Handbook of Mergers and Acquisitions. Oxford Scholarship Online. Retrieved in April 29th 2018 from:
http://www.oxfordscholarship.com/view/10.1093/acprof:oso/9780199601462.001.0001/acprof-9780199601462-chapter-18?print=pdf
Follette Clint, Jung Udo, Kharisov Ilshat, Felde zum Meyer Alexander, and Rubel Holger (2017). Making a Business Case for Sustainability in Chemicals. BCG. Retrieved in April
29th 2018 from: https://www.bcg.com/publications/2017/making-business-case-sustainability-chemicals.aspx
Heo Dongcheol and Yoo Youngjin (2002). "Knowledge Sharing in Post Merger Integration," Case Western Reserve University, USA . Sprouts: Working Papers on Information
Systems, 2(18). Retrieved in April 29th 2018 from: http://sprouts.aisnet.org/2-18
Jen‐te Yang, (2007) "The impact of knowledge sharing on organizational learning and effectiveness", Journal of Knowledge Management, Vol. 11 Issue: 2, pp.83-90, Retrieved
in April 29th 2018 from: https://doi.org/10.1108/13673270710738933
Kato, Junichi and Schoenberg Richard (2014). The Impact of Post-Merger Integration on the Customer-Supplier Relationship. Industrial Marketing Management. Volume 43,
Issue 2: 335-345. Retrieved in April 29th 2018 from: https://www.sciencedirect.com/science/article/pii/S0019850113001910
Jen‐te Yang, (2007) "The impact of knowledge sharing on organizational learning and effectiveness", Journal of Knowledge Management, Vol. 11 Issue: 2, pp.83-90, Retrieved
in April 29th 2018 from: https://doi.org/10.1108/13673270710738933
MarketLine. (2017). MarketLine Industry Profile Global Chemicals. MarketLine. Retrieved March 19 2018.
Porter, Kramer, and Lobb. (2017). Dow: Breakthroughs to World Challenges. Harvard Business School. 9-715-403.
Sarathy, Morawietz, Gotpagar, and Bebiak. (2017). 2017 Chemicals Trends. Strategy& PwC. Retrieved in April 20th 2018. https://www.strategyand.pwc.com/trend/2017-
chemicals-industry-trends
The Dow Chemical Company. (2018). 2025 Sustainability Goals: Delivering Breakthrough Innovations. Dow. Retrieved March 19 2018. https://www.dow.com/en-us/science-
and-sustainability/2025-sustainability-goals/delivering-breakthrough-innovations
The Dow Chemical Company. (2018). Dow open to collaborative approaches to meet global sustainability challenges. Dow. Retrieved March 19 2018.
https://www.dow.com/en-us/science-and-sustainability/dow-open-to-collaborative-approaches-to-meet-global-sustainability-challenges
Page 20