FMC Corporation is a global chemical manufacturing company headquartered in Philadelphia. It was founded in 1883 and has since grown and diversified its operations. The document provides an overview of FMC's history, core operations in agricultural solutions, health and nutrition, and lithium, as well as its vision, mission, organizational culture, and approach to sustainability and stakeholder management.
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An overview of Food Machinery and Chemicals Corporation (FMC)’s Managerial hierarchy
1. 12/7/2015 An overview of
Food Machinery
and Chemicals
Corporation
(FMC)’s
managerial aspect
Ayesha Majid, Bilal Sarwar, Huma Zafar, Maaz
Junaid, Sana Shaukat
2. TABLE OF CONTENTS
Corporate Overview ............................................................................................... 5
History ...................................................................................................................... 6
Core Operations...................................................................................................... 8
FMC Agricultural Solutions ................................................................................ 8
FMC Health and Nutrition .................................................................................. 9
FMC Lithium ......................................................................................................... 9
Vision Statement .................................................................................................. 10
Mission Statement................................................................................................ 10
Organizational Culture......................................................................................... 10
STORIES................................................................................................................. 11
Zeek & Tom: Pure Genius ............................................................................... 11
What Drives Marina? ........................................................................................ 11
Brian Lifts Batteries .......................................................................................... 12
Cultural Dimensions ............................................................................................. 13
External and Internal Variables ......................................................................... 13
External Variables: ........................................................................................... 13
Economic Component: ................................................................................. 13
Demographic Component:........................................................................... 13
Technological Component: .......................................................................... 13
Sociocultural Component: ........................................................................... 14
Political/Legal Component:.......................................................................... 14
Global Component: ....................................................................................... 14
3. Internal Variables: ............................................................................................ 16
Uncertainty Matrix ............................................................................................ 16
Shades of Green ................................................................................................... 18
Valuing Sustainability Certifications .............................................................. 18
Global Water Usage .......................................................................................... 18
Global Energy Usage ........................................................................................ 19
Global GHG Emissions...................................................................................... 19
Managing Stakeholders ....................................................................................... 20
Organisational Structure ..................................................................................... 21
Board of directors ............................................................................................. 22
Hierarchical Structure.......................................................................................... 29
Levels of management ........................................................................................ 35
Chain of command ............................................................................................... 36
How do they manage crisis ......................................................................... 36
Departmentalization............................................................................................. 37
Agriculture department.................................................................................... 37
Specialty Chemicals Group.............................................................................. 38
MACRO TRENDS............................................................................................. 38
FMC BIOPOLYMER ......................................................................................... 38
STRENGTHENING OUR CORE...................................................................... 39
Industrial Chemicals......................................................................................... 39
SODA ASH MARKET....................................................................................... 39
PEROXYGENS ................................................................................................. 40
ENVIRONMENTAL SOLUTIONS.................................................................... 40
4. Human resource planning................................................................................... 40
Procurement....................................................................................................... 41
Management’s Internal Control Over Financial Reporting ........................ 41
Human Resource Management .......................................................................... 41
Employees .......................................................................................................... 41
Measuring Employee Engagement ............................................................. 42
Sustainability Supports Recruitment............................................................. 42
Broadening Expertise and Diversity .............................................................. 42
Employee Motivation ........................................................................................ 42
Career Development Programs.......................................................................... 43
Business Planner ............................................................................................... 43
Supply Chain...................................................................................................... 44
MBA Financial Analyst ...................................................................................... 44
Institute for Management Studies (IMS): ................................................ 45
Leadership Boot Camp:................................................................................ 45
FMC Academia: .............................................................................................. 45
Corporate Social Responsibility.......................................................................... 46
Responsible Care core principles are: ....................................................... 46
Measures of Organizational culture................................................................... 48
Management’s Internal Control over Financial Reporting ......................... 50
Ratios ...................................................................................................................... 51
Liquidity:............................................................................................................. 51
Current Ratio: ................................................................................................ 51
Acid Test Ratio:.............................................................................................. 51
5. Leverage:............................................................................................................ 51
Debt to Assets: .............................................................................................. 51
Times interest earned: ................................................................................. 51
Activity:............................................................................................................... 51
Inventory Turnover: ..................................................................................... 51
Total Assets Turnover: ................................................................................. 51
Profitability:........................................................................................................ 52
Profit margin to sales.................................................................................... 52
Return on investment................................................................................... 52
6. CORPORATE OVERVIEW
FMC Corporation is an American chemical manufacturing company
headquartered in Philadelphia, Pennsylvania. The company was originally
founded by chemist John Bean in 1883 as the Bean Spray Pump Company in Los
Gatos, California, producing piston pumps for insecticides. In 1928, Bean Spray
Pump purchased two companies: the AndersonBarn Grover Co. and Sprague-
Sells Co. At this time the company changed its name to Food Machinery
Corporation, and began using the initials FMC. In 1941 the company FMC
received a contract to design and build amphibious landing vehicles tracked
vehicles for the United States War Department and afterwards the company
continued to diversify its products. FMC currently employs some 5,500 people
worldwide, and had gross revenues of US$3.4 billion in 2011.
As a global leader utilizing advanced technologies and customer-focused
research and development, FMC provides innovative and cost-effective solutions
to enhance crop yield and quality by controlling a broad spectrum of insects,
weeds and disease, as well as in non-agricultural markets for pest control.
Our food ingredients are used to enhance texture, colour, structure and physical
stability. The pharmaceutical additives are used for binding, encapsulation and
disintegrant applications. Some of our products are increasingly being used as
active ingredients in nutraceutical and pharmaceutical markets. Our lithium
products are utilized in energy storage, specialty polymers and pharmaceutical
synthesis.
7. HISTORY
FMC's Spirit of Invention was born in 1883 when founder John Bean created an
innovative insecticide spray pump to combat scale, an infestation that was
ravaging California's orchards and endangering the livelihood of growers. Below is
thee timeline of how FMC developed itself into a multinational corporation.
1880s John Bean invents a spray pump to battle disease in his orchards.
1960s FMC develops underwater wellhead equipment for offshore drilling.
1970s Corporate FMC trademark is created and launched.
1980s FMC makes initial investments in subsea wellhead and completion
systems product lines.
1990s FMC acquires Kongsberg Offshore, National Oilwell Fluid Control
Systems, Smith Meter, and CBV Subsea, solidifying its position as
industry leader.
2000s FMC restructures to create two separate, publicly traded companies -
FMC Technologies (machinery) and FMC Corporation (chemicals).
FMC Technologies, Inc. begins trading on the New York Stock
Exchange
(NYSE: FTI) on June 14, 2001, and becomes an independent
company
December 31, 2001.
Supplied the world's first high pressure/ high temperature (HPHT)
vertical subsea tree system for BP's Thunder Horse field in the Gulf of
Mexico.
2010 First oil at Shell's Perdido in U.S. Gulf of Mexico, which utilizes
innovative subsea separation and boosting systems supplied by FMC
Technologies.
8. 2011 Delivered landmark subsea separation projects on time and
under budget: Totals's Pazflor and Petrobras's Marlim.
Awarded three of the largest subsea projects in Australia: Chevron's
Wheatstone, Shell's Prelude, Woodside's Greater Western Flank.
Opened South American Technology Center in Rio de Janeiro to
support Brazil's growing offshore and deepwater markets, and to
support the pre-salt efforts of Petrobras and other customers.
Set a new world deepwater completion record of 9,627 feet in the Gulf
of Mexico as part of the Perdido development.
2012 Awarded $1.5 billion pre-salt subsea tree contract from Petrobras – the
largest order in the company's history.
Acquired Control Systems International, a leading supplier of
innovative control and automation system solutions for the oil and gas
industry and other markets.
Acquired Schilling Robotics, a world leader in robotics technology.
Acquired Pure Energy Services, a leading provider of frac flowback
services and an established wireline services provider.
Formed FTO Services, a 50/50 joint venture with Edison Chouest to
provide integrated vessel-based subsea services including equipment
intervention, riserless light well intervention, plug and abandonment,
and other services.
2013 Awarded $1.2 billion by Total for subsea equipment for its Egina field.
Partnered with Sulzer Pumps to develop subsea pumping systems.
2014 Signed a joint industry partnership agreement with four of the world's
largest operators - Anadarko, BP, ConocoPhillips, and Shell - to
design the next generation of subsea production equipment for high
pressure/high temperature fields.
9. 2015 Introduced Forsys Subsea, a 50/50 joint venture with Technip, to
redefine the way subsea fields are designed, delivered, and
maintained.
Today, FMC continues changing lives as the innovative force behind industry and
agriculture, where our products maintain leading market positions.
CORE OPERATIONS
FMC AGRICULTURAL SOLUTIONS
Over the past five years, FMC has initiated
more than 20 technology-focused
acquisitions, alliances and collaborations
including our venture with Chr. Hansen, to
develop a robust biological product
platform that is expected to bring new
products to market in late 2015. FMC is
among the global leaders in synthetic
chemical and biological crop protection
products with a growing position in seed
treatment and plant nutrition.
FMC’s announced acquisition of Cheminova will expand product offerings to
current customers in sugarcane, soybeans and cotton and provide faster access
and wider market penetration into additional crops, such as cereals
10. FMC HEALTH AND NUTRITION
FMC Health and Nutrition
initiated a segment-wide
restructuring effort and
implementation of
Manufacturing Excellence
programs to deliver operational
improvements
Ongoing research in new
product applications for foods,
pharmaceuticals and
nutraceutical helped drive the 10th consecutive year of record earnings for this
segment.
FMC LITHIUM
FMC Lithium continues to
wisely manage assets and
optimize returns from
downstream customers. Its
underlying business
fundamentals and market
dynamics are stronger than
ever. Demand for energy
storage applications has continued to grow at double-digit rates globally, thanks to
the ubiquitous use of smart phones, tablets and laptops, as well as rising
consumer preferences for hybrid and electric vehicles (EVs). As domestic and
international automobile manufacturers continue to produce increasingly attractive
EVs based on lithium-ion batteries, we expect to maintain a strong position in the
11. automotive supply chain. Presently, we are the largest supplier of lithium
hydroxide used in batteries to power EVs.
VISION STATEMENT
Improving the Quality of Life across the Globe.
MISSION STATEMENT
Feeding the world, providing health, and providing the conveniences of life.
ORGANIZATIONAL CULTURE
The Culture of the organization is highly sophisticated, mannered and stable. FMC
has made its employees a central part of its culture, it describe dimensions which
create significantly different cultures. As FMC is spread widely across the globe
the organization helps its employees adapt to the culture through socializing
among each other. Furthermore FMC is committed to support innovation and
change therefore employees are open to suggest ideas and participate in the
development of the company and its products.
12. STORIES
ZEEK & TOM: PURE GENIUS
FMC's Jared (Zeek) Kropf and Tom Findlow were tasked with developing a low-
cost process to produce high-purity milled trona (primary source of sodium
carbonate) from a feedstock often containing more than 10 percent impurities.
They quickly identified a unique, robust beneficiation technology that yielded some
of the highest product recovery ever achieved by FMC.
WHAT DRIVES MARINA?
13. The thought of having every car on Earth powered by batteries would be a dream
come true for Marina Yakovleva and her team. Through the development of
FMC's Stabilized Lithium Metal Powder (SLMP®) technology, they are helping
launch the next generation of lithium batteries to power electric vehicles. SLMP is
an enabling material and technology that significantly improves energy density of
the Li-ion battery.
BRIAN LIFTS BATTERIES
Brian Fitch and his innovation colleagues on the FMC CLEAR (Center for Lithium
Energy Advanced Research) Lab team are helping power a new generation of
better, longer lasting batteries to power everything from electronic tablets to
trucks. The Bessemer City, North Carolina, lab features a "dry room" for sensitive
lithium testing, plus a battery formulation centre that's become a global nexus for
knowledge exchange on lithium-ion technology.
14. CULTURAL DIMENSIONS
FMC is a worldwide corporation and aims to maintain their same organizational
culture worldwide. The prime focus being safety and a better and safe
environment for the members of FMC. FMC focuses on continuous improvement
in safety planning, preparation and accurate implementation of their systematic
approach in all departments of the company. It adheres thoroughly to the ethical
standards set forth in their well-defined Code of Ethics and Business Conduct.
The code summarizes the legal and ethical principles to be followed at FMC. The
Corporate Responsibility Committee manages overall compliance with applicable
laws and FMC policies, and reports directly to the Audit Committee of the Board of
Directors to ensure no corners are being cut.
EXTERNAL AND INTERNAL VARIABLES
EXTERNAL VARIABLES:
ECONOMIC COMPONENT:
FMC deals with a wide range of products. The economic component is a very
important external factor. Interest rates set by banks have a direct impact on the
company. During high inflation disposable income of consumers is reduced.
During no inflation there is an increase in consumer’s disposable income and thus
sales increase. FMC Corporation has huge assets on the stock market and is
affected by stock market fluctuation. FMC performed well during the “Great
Recession”. Since the company does not deal with a huge credit market like home
mortgage markets so the economic downfall as a result of the great recession was
cushioned.
DEMOGRAPHIC COMPONENT:
Demographics affect FMC like other companies. During the recent years high
population has increased the sales of agricultural products. People who work with
FMC chemicals, polymers etc are educated. Both high income and low income groups
affect FMC.
Technological Component:
15. Since it manufactures high tech products so FMC has to constantly innovate
and refine its technology.
SOCIOCULTURAL COMPONENT:
FMC promotes sustainability and embraces responsible resource management.
FMC employees continue their involvement in improving the welfare of the
communities where they live and work. With an emphasis on four areas of
opportunity – education and science, health and human services, arts and culture,
and environment and conservation – FMC helps reinforce already strong bonds
with schools, advance much needed healthcare solutions and support a range of
non-governmental organizations (NGOs) that provided community assistance.
Their activities at sites around the world include volunteerism, leadership, and
financial support.
FMC Corporation maintains good relations with the sociocultural variables in the
countries it operates in as without that it wouldn’t be possible to operate there.
POLITICAL/LEGAL COMPONENT:
FMC abides by the legal laws and takes into account the political situation of the
countries it operates in.
GLOBAL COMPONENT:
FMC works with its consumers to tackle globalization. While FMC leadership has
committed the company to sustainability gains across operations, innovation and
business practices, the energy and ideas needed to make sustainability a daily
habit must come us to make globalization work. Just as the company has focused
on safety in the workplace, at home, and everywhere between, FMC wants
sustainable ways of doing business and living life to become second nature.
Global economic conditions also affect FMC.
External variables affect the jobs and employment in a region. They also help to
assess the environmental uncertainty. They also affect the stakeholder
relationships. FMC doesn’t hire freelancers and part time temps. It requires highly
qualified staff who are experts in their fields as it deals with high tech products. In
environmental uncertainty matrix it falls in cell 4.Stakeholders help shape
17. INTERNAL VARIABLES:
The internal variables are the top management, employees, finance department,
research and development department and operations department.
FMC has to take into account the top management decisions, employee feedback
and demands, its finances, the quality of its research and development for
innovation along with its cost.
Finally operations department is taken into account which has to carry out the laid
out tasks.
UNCERTAINTY MATRIX
It falls into the fourth quadrant. This is because it operates in a dynamic and
unpredictable environment. Global markets are constantly changing and evolving
due to various factors. Also climate change is another major factor that affects the
company as it deals with agricultural solutions and products. There are multiple
components to be taken into account. The components are not similar to one
another. FMC deals with products from agricultural solutions, food and nutrition to
chemicals, glass and ceramics, household care etc. so the components are
dissimilar and constantly change. Also there is high need for sophisticated
knowledge of components as it deals with high-tech products and machinery and
there is constant innovation.
18.
19. SHADES OF GREEN
VALUING SUSTAINABILITY CERTIFICATIONS
Our FMC Health and Nutrition business uses
sustainability certifications as a factor in
screening suppliers. Certification by Friends of
the Sea is required for all of our fish oil, and we
are working with the New England Aquarium to
develop best management practices for
sustainable seaweed. One of our stabilizing
food ingredients, microcrystalline cellulose, is
derived from wood pulp. To counter the threat
of deforestation we ask pulp suppliers to
confirm that their forest sources are sustainably managed using a standard such
as the Sustainable Forestry Initiative, Forest Stewardship Council or other
externally verified, globally accepted standards.
GLOBAL WATER USAGE
FMC water intensity decreased
slightly in 2014. The solution
mining process of our Alkali
operations is highly water intensive
and the main driver of our water
use. The Alkali business, divested
in early 2015, made up 47 percent
of FMC’s water usage. It is
important to note that our FMC
Lithium business, the second most
water intensive of our businesses, decreased its water intensity by 13 percent. We
will be focusing our efforts in 2015 on our FMC Lithium facilities with opportunities
for water minimization. We will continue to monitor our water risk profile, drawing
data from the World Resources
20. Institute’s Aqueduct tool. Our water risk assessment conducted in 2013 will
be updated to re-evaluate our portfolio and include newly acquired sites
from Cheminova.
FMC Health and Nutrition implemented systems to recover byproduct to be sold
as biofuel at our Alesund, Norway, site. The improvement decreases the amount
of waste discarded and ensures that byproduct is used for beneficial reuse.
The Alesund site also improved technology to recover additional omega-3 content
from our process. This improvement allows us to use 9 percent less crude fish oil
to produce the same high-quality omega-3, thereby maximizing this valuable
resource.
GLOBAL ENERGY USAGE
Energy intensity increased slightly, with FMC Health and Nutrition facilities driving
the increase due to a product mix in 2014 that relied on sites that are high energy
users. Action: Through our
Energy Management Center of Excellence (EMCOE), we are implementing actions
identified in the energy audit conducted at our Rockland, Maine, site. We will continue
to examine our FMC Health and Nutrition operations and are developing an energy
improvement roadmap as part of our operational excellence plan. In 2015, the primary
focus will be continued improvements in Rockland and a new focus on Cork, Ireland,
where we will complete an energy audit and develop an action plan to reduce energy
intensity. Energy audits at additional FMC Health and Nutrition sites will be targeted in
2016, with Newark, Delaware, and Haugesund, Norway, as the next priorities.
GLOBAL GHG EMISSIONS
Based on the results of a third party pre-assurance audit conducted in 2014, we
updated the emissions factors used in calculating our GHG values to the most
current U.S. EPA factors. These factors drove our reported GHG emissions up 4
percent over 2013. It is important to note that while FMC reported an overall
increase in intensity, two of our businesses recorded a decline in GHG emissions.
We will monitor our FMC Agricultural Solutions contract manufacturers and work
to better understand our greenhouse gas emissions at those sites.
21. MANAGING STAKEHOLDERS
FMC’s primary stakeholders are employees and prospective employees, customers,
suppliers, investors, communities, non-governmental organizations (NGOs) and
governments. We obtained their perspectives through one-on-one interviews
conducted by an independent third party.
Interviewers sought feedback on our 2013 report and input on concerns from a small
sample of Europe- and U.S. based employees, customers, suppliers and NGOs. We
undertook a similar review each of the last two years in order to improve the
relevance of our sustainability reporting. Based on stakeholders’ input, we continue
to add data and details about our performance results when available. We have also
made an effort to be more precise about our approach to environmental
responsibility, product stewardship and how we address major global challenges.
23. BOARD OF DIRECTORS
Pierre Brondeau
President, Chief Executive Officer and Chairman of
the Board, FMC Corporation
Pierre Brondeau joined FMC Corporation on
January 1, 2010, as President and Chief Executive
Officer and became Chairman of the Board on
October 1, 2010. Mr. Brondeau came from Dow
Chemical Company where he served as President
and Chief Executive Officer of Dow Advanced
Materials until September 2009. Prior to joining Dow,
Mr. Brondeau was President and Chief Operating
Officer of Rohm and Haas Company, which was
acquired by Dow Chemical in 2009. During his 20-
year career at Rohm and Haas, Mr. Brondeau held
numerous executive positions in Europe and the
United States with global responsibilities for
marketing, sales, research and development,
engineering, technology and operations
Eduardo E. Cordeiro
Executive Vice President and Chief Financial Officer of
Cabot Corporation, a global specialty chemicals and
performance materials company
Mr. Cordeiro has served as Executive Vice President and
Chief Financial Officer of Cabot Corporation since 2009.
He joined Cabot in 1998 and has held several corporate,
business and executive management positions including
General Manager of Cabot’s Fumed Metal Oxides and
Tantalum businesses and Vice President of Corporate
Strategy. Prior to joining Cabot, Mr. Cordeiro was a
consultant with The Boston Consulting Group and a
24. founding partner of The Economics Resource Group. Mr.
Cordeiro brings extensive strategy, finance and chemical
industry experience to the Board. He has developed
corporate strategy experience working for The Boston
Consulting Group and more specifically chemical industry
strategy experience leading Cabot’s corporate strategy
function for the last several years. He also brings deep
financial experience having held multiple finance roles at
Cabot over the last 14 years, including, most recently, the
CFO position. Mr. Cordeiro also brings operational and
chemical industry business experience to the Board having
been General Manager for two of Cabot’s core specialty
chemical businesses.
G. Peter D’Aloia
Managing Director and member of the Board of Directors of
Ascend Performance Materials Holdings, Inc., a producer of
Nylon 66 and related chemicals
Mr. D’Aloia has served as Managing Director and a member
of the Board of Directors of Ascend Performance Materials
Holdings, Inc. since June 1, 2009. From February 2000 until
June 2008, Mr. D’Aloia served as Senior Vice President and
Chief Financial Officer of Trane, Inc. (formerly American
Standard Companies, Inc.). Prior to that, he was employed
by AlliedSignal Inc. (now known as Honeywell), a diversified
industrial company, most recently serving as Vice President-
Strategic Planning and Business Development. He spent 28
years with AlliedSignal Inc. in diverse management positions,
including Vice President-Taxes, Vice President and
Treasurer, Vice President and Controller, and Vice President
and Chief Financial Officer for the Engineered Materials
sector. He is a member of the Boards of Directors of ITT
25. Corporation and Wabco, Inc. Mr. D’Aloia’s significant
financial and business experience resulting from senior
executive and financial roles in large manufacturing
operations, and service as a director of other public
companies, make him eminently qualified to be a director of
the Company and to serve as a financial expert on the Audit
Committee.
C. Scott Greer
Principal, Greer and Associates, a private investment
management firm
Since June 2006, Mr. Greer has been a principal in Greer and
Associates, a private investment management firm. Until June
2005, he was Chairman, President and Chief Executive Officer
of Flowserve Corporation, a manufacturer of industrial flow
management equipment. He served as Chairman from April
2000 and as its President and Chief Executive Officer from
January 2000. Mr. Greer joined Flowserve Corporation in 1999
as President and Chief Operating Officer. In March 2005,
without admitting or denying the SEC’s charges, Mr. Greer
consented to the issuance by the SEC of an administrative
order concluding that he caused Flowserve to violate the
SEC’s periodic reporting requirements and Regulation FD, and
he consented to the entry of a final judgment requiring him to
pay a related $50,000 civil penalty. Prior to joining Flowserve,
Mr. Greer was President of UT Automotive, a subsidiary of
United Technologies Corporation, a supplier of automotive
systems and components, from 1997 to 1999. He was
President and a director of Echlin, Inc., an automotive parts
supplier, from 1990 to 1997, and its Chief Operating Officer
from 1994 to 1997. Mr. Greer served on the Board of Directors
of Washington Group from 2002 to 2007. He was also a
26. member of the Board of Directors of eMedicalFiles, Inc. Mr.
Greer’s experience in senior executive roles, including as
Chairman and CEO of a publicly-traded global manufacturing
operation, as well as his service as a director of other public
companies, enable him to make a significant contribution as a
director of the Company.
K’Lynne Johnson
CEO and President of Elevance Renewable Sciences
K’Lynne currently serves as CEO and President of Elevance
Renewable Sciences. K’Lynne has over 20 years experience
working within the oil and petrochemicals industry for Amoco, BP
and Innovene. During this time she has worked in a variety of
roles covering general business management, e-commerce,
supply chain optimization, HR management, strategy
development, leadership development, and organizational
design and effectiveness. Prior to her current role as CEO of
Elevance, K’Lynne was the senior vice president (SVP) of the
Global Derivatives operating company within BP Innovene, one
of the world’s largest global petrochemical and refining
companies. K’Lynne’s SVP role included P&L accountability for
multiple global commodity and specialty chemicals businesses
with revenues of $3 billion. K’Lynne was formerly a Director of
the TPC Group Inc. and currently serves on the Board of
Advisors for the Morton Arboretum, Board of Directors of the
Illinois Biotechnology Industry Organization (iBIO), and the
Institute and the Board of Directors for Women in Biotech
27. Dirk A. Kempthorne
President and CEO, American Council of Life Insurers
Governor Kempthorne was appointed to his current position with
the American Council of Life Insurers in November 2010. Prior to
that, he served as the 49th United States Secretary of the Interior
from June 2006 until January 2009. From January 1999 until his
appointment as Secretary of the Interior, Governor Kempthorne
served as the Governor of Idaho. He was also a United States
Senator representing the State of Idaho from 1993 to 1999 and
was the Mayor of Boise, Idaho from 1986 to 1993. Governor
Kempthorne has been Chairman of the National Governors
Association, Chairman of the Western Governors Association and
President of the Council of State Governments. He also served as
a member of the Homeland Security Task Force. Governor
Kempthorne is a member of the Board of Directors of Olympic
Steel. His lengthy experience in government, both on the federal
and state level, makes Governor Kempthorne well qualified to
serve as a director of the Company, which interfaces with
numerous regulatory agencies in several facets of its operations
Paul J. Norris
Retired Chairman and Chief Executive Officer of W. R. Grace &
Co., a manufacturer of specialty chemicals
Until May 2005, Mr. Norris served as Chairman and Chief
Executive Officer of W. R. Grace & Co., a manufacturer of
specialty chemicals. Mr. Norris was actively engaged in W. R.
Grace’s businesses for the six years prior to his retirement as
Chief Executive Officer. He resigned as a member of W. R.
Grace’s Board of Directors in February 2010. Mr. Norris joined
W.R. Grace as President and CEO in November 1998 and
became Chairman in January 1999. Prior to joining W.R. Grace,
28. Mr. Norris was at AlliedSignal Inc. (now known as Honeywell) for
nine years and served as Senior Vice President and President,
Specialty Chemicals, from 1997 to 1998; President, AlliedSignal
Polymers Division from 1994 to 1997; and President, AlliedSignal
Chemicals & Catalysts (formerly Fluorine Products Division) from
1989 to 1994. From 1981 to 1989, Mr. Norris served in various
executive capacities with Engelhard Corporation (now a part of
BASF Corporation), including President of Catalysts and
Chemicals, Senior Vice President and General Manager of
Catalysts, and Vice President and Business Director for Petroleum
Catalysts. Mr. Norris has previously served on the Board of
Directors of Borden Chemicals, Inc., Ecolab, Inc. and Nalco
Holding Company. He is the Non-Executive Chairman of the
Board of Directors of Sealy Corporation, and performs advisory
services for Kohlberg Kravis Roberts & Co., currently the major
stockholder of Sealy Corporation. As the former Chairman and
CEO of a specialty chemical company and with over 30 years in
the chemical industry, Mr. Norris has significant business
experience relevant to the Company which makes him well
qualified to serve as a director.
Robert C. Pallash
Retired President, Global Customer Group and Senior Vice
President of Visteon Corporation
Until 2013, Mr. Pallash has served as President, Global Customer
Group and Senior Vice President of Visteon Corporation, an
automotive parts manufacturer, since January 2008. From August
2005 to January 2008, Mr. Pallash was Senior Vice President,
Asia Customer Group for Visteon. He joined Visteon in September
2001 as Vice President, Asia Pacific. Visteon filed for bankruptcy
protection under Chapter 11 of the U.S. Bankruptcy Code in May
2009 and exited in October 2010. Prior to joining Visteon, Mr.
29. Pallash served as President of TRW Automotive Japan from 1999.
Mr. Pallash serves on the Board of Directors of Halla Climate
Controls in South Korea, a majority-owned subsidiary of Visteon
Corporation. Mr. Pallash’s international experience, particularly in
Asia where the Company seeks to grow its business, enables him
to bring significant value as a member of the Board.
William H. Powell
Retired Chairman and Chief Executive Officer of The National
Starch and Chemical Company, a producer of specialty polymers,
electronic and engineering materials, and specialty food ingredients
Mr. Powell retired as Chairman and Chief Executive Officer of The
National Starch and Chemical Company in 2006. He joined National
Starch in 1976 and held numerous management and executive
positions in the company. When National Starch was a subsidiary of
the UK chemical company ICI PLC, Mr. Powell was an Executive
Vice President and a director of ICI PLC. Prior to joining National
Starch, he was with Novamont Corporation and Air Products and
Chemicals, Inc., and served as an officer in the United States Air
Force. He currently serves as a non-executive director for Granite
Construction Incorporated and PolyOne Corporation. Mr. Powell’s
deep background in the chemical industry, his global expansion and
innovation systems experience, his extensive public company board
service, and his role as a chief executive officer during periods of
growth add great value to the Board of the Company.
Vincent R. Volpe, Jr.
Chief Executive Officer and President of Dresser-Rand Group, Inc.,
an industrial equipment supplier
Mr. Volpe is the Chief Executive Officer, President and a director of
Dresser-Rand Group, Inc., a leading supplier of rotating equipment
solutions to the worldwide oil, gas, petrochemical and process
30. industries. He has served in those positions since his election in
September 2000. Previously he served as Chief Operating Officer of
Dresser-Rand Group, Inc. from 1999 until September 2000. Since
joining Dresser-Rand in 1981, Mr. Volpe has held several diverse
management positions. Most recently, he served as President,
Turbo Products Division from 1997-1999; President-Europe from
1996-1997; Vice President and General Manager, Turbo Products
Division-European Operations from 1993-1996; Executive Vice
President, European Operations from 1992-93; Vice President,
Marketing and Engineering, Steam & Turbo Products-European
Operations. Mr. Volpe is currently a Trustee of St. Bonaventure
University and an advisor to the Board of Directors of Archbishop
Walsh High School (Olean, NY). In his current role as the CEO of a
large manufacturing company and with his significant international
experience, Mr. Volpe has the experience necessary to provide
valuable oversight to the Company in the conduct of its business.
HIERARCHICAL STRUCTURE
FMC Corporation works under a formal hierarchical structure of five layers starting
at Chief Executives level and ending down at operators.
31. Pierre Brondeau
President, Chief Executive Officer and Chairman of the Board,
FMC Corporation
Pierre Brondeau
Pierre Brondeau joined FMC Corporation on January 1, 2010,
as President and Chief Executive Officer and became Chairman
of the Board on October 1, 2010. Mr. Brondeau came from Dow
Chemical Company where he served as President and Chief
Executive Officer of Dow Advanced Materials until September
2009. Prior to joining Dow, Mr. Brondeau was President and
Chief Operating Officer of Rohm and Haas Company, which
was acquired by Dow Chemical in 2009. During his 20-year
career at Rohm and Haas, Mr. ...
Paul Graves
Executive Vice President and Chief Financial Officer
Paul Graves
Paul Graves was named executive vice president and chief
financial officer on October 1, 2012. He brings more than 19
years of international banking and accounting experience, with a
specialized focus on chemicals and agriculture.
Mr. Graves previously served as managing director and partner
in the Investment Banking Division at Goldman Sachs Group in
Hong Kong, where he was the co-head of Natural Resources for
Asia (excluding Japan). In that capacity, he was responsible for
managing...
32. Mark A. Douglas
President, FMC Agricultural Solutions
Mark A. Douglas
Mark Douglas was named President, Agricultural Solutions
effective October 1, 2012. He joined FMC Corporation in March
2010, as Vice President, Global Operations and International
Development and as a member of the Executive Committee and
was named President, Industrial Chemicals Group in 2011. Mr.
Douglas joined FMC from Dow Chemical where he was Vice
President, President Asia, and Dow Advanced Materials. Prior
to joining Dow, Mr. Douglas was Corporate Vice President,
President Asia, Rohm and ...
Andrea E. Utecht
Executive Vice President, General Counsel and Secretary
Andrea E. Utecht
Andrea Utecht was named Executive Vice President, General
Counsel and Secretary, effective January 1, 2011. She joined
FMC in July 2001 as Chief Legal Officer and was elected Vice
President, General Counsel and Secretary in January 2002.
Prior to joining FMC, Ms. Utecht was Senior Vice President,
Secretary and General Counsel of ATOFINA Chemicals, Inc.
(now known as Arkema Inc.). She was with ATOFINA and its
predecessor companies for 20 years, including three years as
Vice President...
Andrew D. Sandifer
Vice President, Corporate Transformation
Andrew D. Sandifer
Andrew Sandifer serves as Vice President, Corporate
Transformation for FMC Corporation. In this role, Mr. Sandifer is
33. leading the overall effort to integrate the recently announced
acquisition of Cheminova A/S.
From 2010 to June 2014, Mr. Sandifer served as Vice President,
Strategic Development, with overall responsibility for all Mergers
and Acquisitions and Strategic Planning activities, working in
close partnership with other business and functional leaders.
Before joining ...
Kenneth A. Gedaka
Vice President, Communications and Public Affairs
Kenneth A. Gedaka
Kenneth Gedaka joined FMC Corporation as vice president of
Corporate Communications in September 2011. He is
responsible for the company’s public affairs, internal and
external communications, executive communications,
philanthropy, and corporate brand and reputation.
Prior to FMC, Mr. Gedaka spent 16 years with Rohm and Haas
Company in a variety of corporate and business communication
roles of increasing responsibility, including manufacturing site
public affairs, organizational ...
Barry Crawford
Vice President, Operations
Barry Crawford
Barry Crawford joined FMC in February, 2012, with more than
25 years of global manufacturing, supply chain, and engineering
experience in the specialty chemical industry. In his new role, he
has functional oversight for the global FMC Manufacturing
34. Network, large-scale capital projects, and the company’s global
supply chain.
Mr. Crawford joins FMC from The Dow Chemical Company,
where he most recently led manufacturing, engineering, and the
technical organization for Dow Coating Mate...
Karen M. Totland, Ph.D.
Vice President, Global Procurement, Global Facilities &
Corporate Sustainability
Karen M. Totland, Ph.D.
Karen M. Totland, Ph.D. serves as Vice President, Global
Procurement, Global Procurement and Corp Sustainability for
FMC Corporation
Karen joined FMC in November of 2010, from Firmenich, a
leading Fragrance and Flavour company based in Switzerland
where she spent 14 years, most recently as Vice President,
Global Purchasing. Here she obtained experience leading
purchasing and strategic sourcing at a global level. Karen has a
proven track record building new organizations, achieving
both...
Eric Norris
Vice President, Global Business Director, FMC Health and
Nutrition
Eric Norris
Eric Norris was named Vice President, Global Business
Director, FMC Health and Nutrition in November 2014. He was
previously Vice President and Global Business Director for the
Lithium business.
35. Since joining FMC in 2001, Mr. Norris served leadership roles in
investor relations, corporate development and Director of FMC
Healthcare Ventures.
Prior to joining FMC, Mr. Norris founded and led an internet-
based firm offering formulation and design tools to the chemical
industry...
Kyle Matthews
Vice President, Human Resources
Kenneth R. Garrett Executive Vice President Human Resources
36. Barry J. Crawford Vice President Operations
D. Michael Wilson President Specialty Chemicals Group
Pierre R. Brondeau President, Chief Executive Officer and Chairman of the Board
Mark A. Douglas President Agricultural Products Group
LEVELS OF MANAGEMENT
MANAGEMENT AND EMPLOYEE RELATIONS
The current CEO of FMC Corp is Pierre Brondeau. He has
served as president and CEO and became chairman of the
board on October 1, 2010. Mr. Brondeau came from Dow
Chemical Company where he served as President and CEO of
Dow Advanced Materials until September 2009. Prior to joining
Dow, Mr. Brondeau was President and CEO of Rohm and Hass
Company which was acquired by Dow Chemical in 2009.
Mr. Brondeau serves on the board of directors of Tyco Electronics and is a member
of the American Chemistry Council’s Responsible Care Strategic Review Executive
Taskforce. He earned both his Bachelor of Science degree and Ph.D. in Biochemical
Engineering from INSA in Toulouse, France. Mr. Brondeau also holds a master’s
degree in Food Sciences from the University of Montpellier, France.
The current CFO of FMC Corp is W. Kim Foster. He has served as
CFO since 2001. Prior to serving in his current role, Mr. Foster held
numerous other executive and management positions within FMC,
including Vice President and General Manager -Agricultural
Products Group from 1998 to 2001; Director, International,
Agricultural Products Group from 1996 to 1998; and General
Manager, Airport Products and Systems Division, from 1991 to 1996.
Rebecca Golden: Disintegrants, Coatings and Hydrocolloids Product Manager
Eric Beatty Global Marketing Director
Alden Gibson Business Analyst
37. Christophe Massip Binders Product Manager
Kieran O’Dwyer Operations Manager
Susan Chiu Business Analyst
CHAIN OF COMMAND
FMC follows a formal chain of command with the following characteristics:
• Centralized decision making.
• Follow unity of command & unity of direction.
• Disciplined.
• Order in materials & workforce.
• Equity of employees.
• Following Esprit de corps by promoting team spirit &harmony within organization.
HOW DO THEY MANAGE CRISIS
• Continually update our Crisis Management Plan to reflect the latest changes in our
organization.
• ongoing crisis management exercises during the year
38. • Ensure that local and regional crisis management plans integrate well with our
overall corporate plan.
• Conduct workshops and seminars for the time to time training of our employees.
Setting Meaningful Targets
• Set theme based yearly goals and then set strategies to follow those themes.
• Implemented since 2012 which has shown a tremendous effect in the outcomes of
the organization.
Introduction of the new technique and methods of sustainability the organization
made new and innovative commitments which were achieved successfully and upon
which future projections were made.
DEPARTMENTALIZATION
AGRICULTURE DEPARTMENT
Agricultural Products Group completed its ninth consecutive year of record earnings
by strengthening its technology portfolio and growing its global presence.
Operations within the agricultural segment include developing, manufacturing and
selling a portfolio of crop protection, professional pest control and lawn and garden
products to consumers and farmers. There innovation and growth efforts are fuelled
by the goal of increasing farmers’ yields and providing cost-effective alternatives to
previous chemicals.
1. The INSECTICIDE PRODUCT LINE is the largest product line in the agricultural
products segment. It is mostly comprised of pyrethroid and carbamate chemistries
intended to control a wide range of insects, including chewing pests (ex: caterpillars)
and sucking pests (ex: aphids). FMC’s insecticides can be applied as sprays, dusts
or granules on a wide variety of crops.
2. The HERBICIDE PRODUCT LINE primarily targets niche uses and controls a
wide variety of difficult-to-control weeds. Management states their herbicide product
39. line has grown significantly due to organic growth, new product launches and the in-
licensing of new chemistries.
3. The FUNGICIDE PRODUCT line began FY 2009 with the successful acquisition of
the proprietary fungicide Banalaxyl. The purpose of the acquisition was to broaden
the agricultural product portfolio.
Specialty Chemicals Group
had a mixed year, with the BioPolymer business unit delivering its eighth consecutive
year of record earnings while continuing to build its new natural colours platform and
pectin business. But the solid performance in BioPolymer was offset by operational
challenges in the Lithium business.
Specialty chemicals has delivered steady sales growth through the first three years
of the company’s Vision 2015 strategic plan, with our BioPolymer business posting
its eighth consecutive year of record earnings in 2012. Our two core businesses,
BioPolymer and Lithium, have broad, global footprints, with a strong presence in
rapidly developing economies.
We are an industry leader in functional chemistries that provide innovative customer
solutions in the food, pharmaceutical, energy storage and other specialty markets.
We employ a collaborative strategy to anticipate our customers’ needs, focusing our
technical capabilities to set the standard for quality and performance.
MACRO TRENDS GUIDE MICRO DECISIONS The crops and markets we serve
are closely tied to four significant demand categories: food, fibre, feed and fuel. In
the coming years, consumption of products within these four categories will continue
to rise due to several major factors.
FMC BIOPOLYMER: PURSUING A ‘NATURAL’ GROWTH PATH FMC
BioPolymer accounts for three-quarters of the Specialty Chemicals Group sales. The
foundation of this business is a unique, all-natural product line of food ingredients
and pharmaceutical excipients. We extract, purify, standardize and process
renewable materials to create a highly functional and flexible array of texturants,
colorants and binders.
40. Our products include microcrystalline cellulose (MCC), derived from specialty wood
pulps; carrageenan and alginates, extracted from seaweed; pectin, taken from lemon
peel; and natural colours, derived or extracted from a variety of plants and other
natural sources.
The pharmaceutical industry uses our MCC products, including our flagship Avicel®
brand, which for 50 years has been the industry’s “gold standard” for tablet binders
and disintegrates. MCC is also used in the food industry along with our carrageenan
and alginate products to provide texture, structure and physical stability, enabling our
customers to achieve customized products that meet their exacting requirements.
STRENGTHENING OUR CORE We have made significant progress toward our
key 2015 strategic imperatives: strengthening our core leadership positions,
extending our reach into fast-growing geographies, and expanding our offerings with
additional products.
With capacity expansions at our facilities in Cork, Ireland; Haugesund, Norway; and
Newark, Delaware, our MCC and alginate positions are better able to support
increasing demand for FMC’s food and pharmaceutical products.
INDUSTRIAL CHEMICALS
Industrial Chemicals Group increased both revenue and earnings over 2011, and
launched a new business unit – FMC Environmental Solutions – that leverages our
technologies in the environmental remediation and pollution prevention market
To meet these market needs, we pursue external growth by acquiring product lines
and enabling technologies that broaden and improve our portfolio. During the past
year, we launched more than 30 new products globally. By 2015, we expect to add
another 100 new products to achieve our goal of 35 percent of sales from products
introduced since the inception of the Vision 2015 plan.
SODA ASH MARKET: Plays ROLE TO OUR STRENGTH. We are the largest
producer of natural soda ash, thanks to the location of our manufacturing complex in
Green River, Wyoming, on the world’s largest reserve of trona ore. Nearby, our
41. Granger plant, restarted in 2011, also added 500,000 tons of production capacity.
Our reserves, coupled with FMC’s pioneering efforts, enable us to produce soda ash
at a substantially lower delivered cost than synthetic producers.
PEROXYGENS: SPECIALIZING SPELLS SUCCESS FMC Peroxygens was, at
one time, largely a commodities business. Today, customized applications drive our
transformation as the demand for specialty grade hydrogen peroxide, persulfates
and per acetic acid continues to grow. Since 2007, we have more than doubled
revenues tied to specialty uses.
ENVIRONMENTAL SOLUTIONS: A NATURAL FIT The $40 billion environmental
remediation and pollution prevention market is growing at a rate of 10 to 30 percent
per year, depending on the specific industry segment. This growth is fuelled by new
and more stringent government regulatory controls in many parts of the world. Global
markets want cost-effective compliance alternatives that produce better results and
are more sustainable than traditional chemical or non-chemical approaches.
For a number of years, FMC’s Alkali and Peroxygens business units have served the
remediation needs for air, soil and water. Through an 18-month development
process, we assessed global environmental markets, identified under-served
segments and examined new opportunities for our proven remediation technologies.
As a result of this effort, we determined that these markets deserved a more focused
effort. FMC Environmental Solutions is developing customized solutions for three
core market segments: air pollution control, site remediation and water treatment.
HUMAN RESOURCE PLANNING
The first responsibility of every leader and employee at FMC is to achieve an injury-
free workplace. In 2012 we launched our “Think! Safe.” initiative to remind everyone
that nothing is more central to our success and sustainability than the safety of our
people. We made good progress with fewer injuries in 2012 compared to the year
before. In fact, we recorded our lowest injury rate in over a decade. Zero injuries is
our ultimate goal, and we remain diligent in our resolve to create a robust safety
culture.
42. PROCUREMENT
Procurement is a strategic organization, poised to deliver real value to FMC that is
well beyond our original 2015 cost savings target of $80 million.
Although much of our buying operations remain within individual FMC businesses,
procurement employees now report to a centre-led organization responsible for
strategic sourcing, major contracts, and best-in-class training. Our sourcing
managers, who specialize in critical procurement areas, have already saved millions
in energy costs alone by leveraging volume and working with FMC sites on
alternative fuel strategies.
We are investing in new technologies that improve procurement speed, accuracy,
and efficiency, too.
MANAGEMENT’S INTERNAL CONTROL OVER FINANCIAL REPORTING
FMC’s internal control over financial reporting includes the controls themselves,
monitoring and internal auditing practices and actions taken to correct deficiencies
as identified.
HUMAN RESOURCE MANAGEMENT
EMPLOYEES
We employ approximately 5,700 people, with about 2,700 people in our domestic
operations and 3,000 people in our foreign operations. Approximately 31 percent of
our U.S.-based and 32 percent of our foreign-based employees, respectively, are
represented by collective bargaining agreements. We have successfully concluded
most of our recent contract negotiations without any material work stoppages.
In those rare instances where a work stoppage has occurred, there has been no
material effect on consolidated sales and earnings. We cannot predict, however, the
outcome of future contract negotiations. In 2013, 10 collective-bargaining
agreements will expire. These contracts affect about two percent of our U.S.-based
employees and 24 percent of foreign-based employees.
43. MEASURING EMPLOYEE ENGAGEMENT
Conducting Internal surveys for measuring our progress.
It also identified specific areas where additional focus might improve workforce
involvement.
SUSTAINABILITY SUPPORTS RECRUITMENT
At FMC managers engage with employees even before they join the FMC team.
There are clear articulated Programmes that helps our employees quickly
understand and appreciate our program
BROADENING EXPERTISE AND DIVERSITY
FMC believes that the most critical learning happens on the job and we work to
create an environment in which everyone has opportunities to learn, grow and apply
their skills. Thus they are partnering with schools and universities to actively promote
these courses of study.
Employee Motivation
Employee motivation is increased by:
• Lucky draws
• Cash prizes.
• Medical insurance.
• Recreational trips every year.
• Employee of the month award.
• Hygienic working conditions.
• Social security.
44. CAREER DEVELOPMENT PROGRAMS
BUSINESS PLANNER
Business Planning is a highly visible position that allows recent MBA graduates to
gain a variety of business exposures. This experience generally consists of a 12 to
18 month rotation in which the Planner is exposed to significant, multifunctional
commercial projects in the Food Ingredients, Pharmaceutical and Personal Care
businesses. Successful planners generally have a technical background with
commercial experience in the areas of sales, marketing, business development or
strategy. Upon completion of the rotation, the Planner usually transitions into a
commercial role based on their strengths, interests and the current needs of the
business. This rotation is the first step towards general management within FMC
BioPolymer. Manufacturing Development Through this structured development
program, individuals will gain valuable experience and exposure in the following
areas:
• Supply Chain
• In-depth manufacturing process understanding
• Exposure to the commercial side of the business
• Supervising direct reports
• Understanding of the financial drivers of the business
Structured rotations will be offered for the individual’s first 3 to 5 years. Each is
generally 18 to 24 months in duration and will offer exposure to several
manufacturing locations. Successful individuals generally have a background in
Process or Chemical Engineering with a demonstrated ability to lead others and
think analytically. Geographic mobility is also essential. At the completion of the
rotation, the individual will be ready to assume a manufacturing position within the
business.
45. Supply Chain
Through this program, individuals will gain valuable experience and exposure in the
following areas:
• Demand planning and forecasting management
• Logistics and distribution
• Warehousing costs and inventory levels
• Product allocation
• Exposure to the commercial side of the business Successful individuals should be
able to recommend and drive state-of-the-art supply chain practices across the
organization.
The ability to understand and interpret complex data is also a key part of this
position. This rotation is generally 12 to 24 months in duration at which point the
individual will be ready to assume a supply chain position within the business.
MBA Financial Analyst
The Financial Analyst position allows recent MBA graduates with a finance
background to gain a variety of experiences within FMC BioPolymer’s finance
organization. This position offers exposure to significant projects in the Food
Ingredients, Pharmaceutical and Personal Care businesses. Major areas of
responsibility could include:
• Provide analysis and explanation of business financial results
• Prepare financial presentations for Division and Corporate reviews
• Facilitate budget process in close coordination with the Business Analysts and
Finance Manager
• Develop long range planning models for the business
• Partner with marketing and sales organizations to provide both financial and
strategic assistance.
46. The ability to understand and interpret complex financial data is a key part of this
position. Demonstrated success in this role would then lead to higher-level positions
within the Finance organization.
INSTITUTE FOR MANAGEMENT STUDIES (IMS):
FMC partners with IMS to provide leadership education and professional
development training for employees
LEADERSHIP BOOT CAMP:
Boot Camp sessions to develop their personal leadership styles, practice
interpersonal skills, and learn how to effectively lead teams at FMC.
FMC ACADEMIA:
Development focuses on several knowledge areas to improve leadership, business
competencies, quality of life, safety and the environment.
47. CORPORATE SOCIAL RESPONSIBILITY
Responsible Care is the global chemical industry’s environmental, health and safety
(EHS) initiative to drive continuous improvement in performance. It achieves this
objective by meeting and going beyond legislative and regulatory compliance, and by
adopting cooperative and voluntary initiatives with government and other
stakeholders. Responsible Care is an ethic and a commitment that seeks to build
confidence and trust in an industry that is essential to improving living standards and
the quality of life.
Specific elements vary among the national chemical industry associations, but all
have the common theme of making progress toward the vision of no accidents,
injuries or harm to the environment - Responsible Care® is good chemistry at work.
Responsible Care was adopted by the American Chemistry Council (ACC) in 1988
and today, is practiced by 55 national and regional associations of chemical
manufacturers in 60 economies around the world. Through membership in the
International Council of Chemical Associations (ICCA), each member chemical
industry association commits to Responsible Care.
FMC is a member of ACC and implementation of Responsible Care is a requirement
of membership in ACC. FMC’s EHS Policy, among other elements, adopts the
Responsible Care Principles as we do business globally, and is the foundation upon
which we have built our sustainability programs. FMC has also signed the
Responsible Care Global Charter.
Responsible Care core principles are:
Continuously improve the environmental, health and safety knowledge and
performance of technologies, processes and products over their life cycles so as to
avoid harm to people and the environment
Use resources efficiently and minimize waste
Report openly on performance, achievements and shortcomings
Listen, engage and work with people to understand and address their concerns and
expectations
48. Cooperate with governments and organizations in development and implementation
of effective regulations and standards, and to meet or go beyond them
Provide help and advice to foster the responsible management of chemicals by all
who manage and use them along the product supply chain.
In the United States, a key element of the ACC Responsible Care program is
implementation of a management system – a rigorous plan-do-check-act program -
for health, safety and environmental programs called the Responsible Care
Management System (RCMS). The ACC requires third-party auditing to certify our
implementation of, and compliance with, RCMS.
49. MEASURES OF ORGANIZATIONAL CULTURE
Top Ten Global Ranking of Agrochemical Companies(2013)
Ranking Company Sales
1 Syngenta 10.9 Billion
2 Bayer CropScience 10.4 Billion
3 BASF 6.9 Billion
4 Dow AngroSciences 5.5 Billion
5 Mosanto 4.5 Billion
6 DuPont 3.5 Billion
7 Adama 2.8 Billion
8 Nufarm 2.1 Billion
9 FMC 2.1 Billion
10 Sumitomo
Chemicals
2.0 Billion
The Pakistan crop protection industry is estimated at Rs.32 billion with more than a
few hundred companies who have registered as pesticides providers that makes it a
very competitive sector. The market leader with a market share of around 20% is
Syngenta, followed by Ali Akbar with a share of 19 % of the market. Large
multinationals in order of ranking after Syngenta are Bayer Crop Sciences. FMC, and
Arysta Life Sciences. Due to the huge competition and the introduction of generic
pesticides by local companies, both multinationals like DuPont, BASF, and Dow Agro
Sciences, and many other local companies have had to liquidate their operations in
Pakistan.
In 2013, the top twenty global companies achieved a total sales of $59.27 billion
which was a 10% increase on the previous year. The top six firms have
50. maintained a stable growth with total sales accounting for 70% of the total sales of
the top twenty firms.
FMC focuses greatly on constant development of the biggest asset they claim;
their employees. The firm offers a variety of development opportunities to further
polish and enhance their skill set required now and in the future. They focus on
educational and experiential learning opportunities such as conferences and
education and certification classes. In order to build a sustainable, disciplined and
standardized approach globally, they focus greatly on their employee
development programs in order to strength the company from within. These
programs create great loyalty and pride within the employee resulting in
maintaining a low turnover rate.
Turn Over Rate
2012 2013 2014
Globally 5.0 % 6.1 % 6.2 %
Non-Exempt 5.9 % 8.4 % 7.5 %
Hourly 2.3 % 2.7 % 2.1 %
Exempt 5.9 % 6.4 % 7.4 %
Global Workforce by Region
North America Latin America Asia Specific Europe, Middle East & Africa
51. Being the global force that FMC is, it aims to keep a balance between the diverse
work force it has and the opportunities that it provides its employees. Attracting
women and minorities has been a priority to diversify the labour force and provide
equal opportunities and support to everyone. It has added diversity measurements
to the success standards and aims to further diversify its work force. Diversity
criteria is set and quarterly reviews are held in order to ensure no biases are being
faced by the employees and potential employees and ensuring these criteria is
met globally. The women employee population and people of colour are measured
quarterly to ensure the diversity goals are being met.
Women in Management 2013 2014
Percentage of women at FMC 23.7% 25%
Women in professional roles 25.8% 26.3%
Women in senior management 21.3% 21.3%
Several initiatives are launched in order to further strength the diverse workforce.
“Women’s Initiative Network” was launched in order to support and help women
achieve their goals and professional success and growth at FMC. “Lunch with
Millennials” provides peer-to-peer knowledge sharing under the guidance of senior
professionals.
To overcome talent shortages in the fields of science, technology and engineering
in agriculture sector, numerous community programs and on-site internships help
students who have potential to enter these fields and start their careers at FMC. In
the summer of 2014, for example, several college students gained valuable
experience as interns in our FMC Agricultural Solutions business.
MANAGEMENT’S INTERNAL CONTROL OVER FINANCIAL REPORTING
FMC’s internal control over financial reporting includes the controls themselves,
monitoring and internal auditing practices and actions taken to correct deficiencies
as identified.
52. RATIOS
LIQUIDITY:
CURRENT RATIO: Current Assets/Current Liabilities
= 3,238.1/1,455.0
= 2.225498281786942
ACID TEST RATIO: Current Assets-Inventories/Current Liabilities
= 3,238.1-906.1 /1,455.0
= 1.602749140893471
LEVERAGE:
DEBT TO ASSETS: Total debt/Total assets
=2,048.5 /6,447.0
=0.3177446874515278
TIMES INTEREST EARNED: profit before interest and taxes/Total interest
charges
= 94.6 /59,700
=0.0015845896147404
ACTIVITY:
INVENTORY TURNOVER: Sales/Inventory
= 659.4/906.1
= 0.7277342456682485
TOTAL ASSETS TURNOVER: Sales/Total Assets
=659.4/6,447.0
53. =0.1022801302931596
PROFITABILITY:
PROFIT MARGIN TO SALES: Net profit after taxes/total sales
=59.4/659.4
=0.0900818926296633
RETURN ON INVESTMENT: Net profit after taxes/ Total assets
=59.4/6,447.0
=0.0092135877152164