Business adaptive strategies in the German chemical industry
: the case of BASF & Evonik facing the energy crisis

  • Luca Ehmer (Student)

Student thesis: Master's Thesis

Abstract

The energy crisis in Europe has immensely affected Europe, especially the German economy. Energy intensive industries are under immense pressure. The chemical industry is Germany´s largest industrial energy consumer, depending heavily on natural gas and electricity supplies. Three aspects give companies in the industry cause for concern: skyrocketing prices for electricity and gas, the threat of insufficient commodity supply, and fading economic competitiveness compared to global markets. The following thesis, presented as a pedagogical case study, focuses on the strategic measures of two companies to mitigate the severe consequences of the energy crisis: BASF and Evonik Industries AG. In a comparative analysis, their measures are being examined in the research note alongside three strategic management theoretical concepts: "Dynamic Capabilities"; "Resource-Based View"; and "Strategic Response to Crisis". The case study and the teaching notes are intended to be used as a pedagogical framework mainly suggested for management courses emphasizing business strategy, crisis management, and strategic renewal. As a result, both companies were able to cope with the devastating consequences of the energy crisis through the following measures: Entering into strategic partnerships to diversify energy and resource supplies, investing and relocating production to sites with less dependence on Russian gas, substituting natural gas with other energy sources, and implementing cost-saving and restructuring measures.
Date of Award25 Jan 2024
Original languageEnglish
Awarding Institution
  • Universidade Católica Portuguesa
SupervisorNuno Cardeal (Supervisor)

Keywords

  • German chemical industry
  • BASF
  • Evonik
  • Energy crisis
  • Energy sources
  • Business strategies
  • Dynamic capabilities
  • Resource-based view
  • Strategic response to crisis

Designation

  • Mestrado em Gestão

Cite this

'