Business Innovation

Business Innovation

Student’s Name


Business Innovation

Executive Summary

The products department in Momentive Specialty Chemicals Company, which is based in the United States aims at developing a cosmetic which is all natural. Adding onto the aspect of the chemical being all natural is the aspect of lack of silicone in the cosmetic. The company is the most outstanding globally in the manufacturing and production of specialty chemicals among other materials it specializes with. Silicone is a gel that, from research and studies that have been conducted about it, could have adverse negative effects to the consumers of products that contain the chemical (Agrawal, 2013). The innovation is aimed at producing a cosmetic that is free of silicone and this is aimed at ensuring that the cosmetic would not have adverse after effects on the well being of customers (Sarah, 2006).

Business Model and Strategic Plan

Existing Business

Currently, Momentive Specialty Chemicals manufactures products that have silicone as one of the component compounds. The company does not produce its products with the chemical in it with the aim of causing any harm to the clients. The company produces products with silicone in order to ensure that the products that reach customers are in the best stature and improved forms as much as possible. Silicone is used as a key component in some of the company’s products for the following reasons; the product silicone plays a key role in modifying the surfaces of the products, enhancing the wetness and better spreading of products, enhancing the softness and improving conditioning of the products and enhancing foam control for the products of the company. Silicone is a key additive in helping achieve these objectives in manufacturing and the development of the company’s products currently (Sarah, 2006).

New Business Division

There being a new division in the company, it is the role of everyone in the division to ensure and see to it that the products of the company are improved and enhanced more. The new division aims at achieving the goal of developing cosmetics that have no silicon compound content in them. This aims to be achieved through the redefined vision and mission in the division which borrow a lot from the vision of the company (Armstrong, 1996).

The New division is highly determined to see to it that the products already being produced, which are not judged of being of poor quality are improved and enhanced in the next few years. Improvement is aimed at beginning with enhancement of the value of the products and the enhanced safety of the products to their end users and consumers.

The company’s vision is the utility of the available resources in seeing to it that as a world leader in the manufacture of chemicals, it embarks on innovativeness in enhancing the quality of their products. Improvement in the quality of the products of the company is aimed at ensuring the lives of consumers are improved and the wants or needs of the clients are met accordingly (Armstrong, 1996).

Business Model and Strategic Plan Part II

SWOT Analysis

A SWOT analysis is an important tool and guide that is meant at ensuring that opportunities and other aspects of a corporation or a business are in check. It serves as a guide on what ought to be improved and enhanced for better performance among other aspects


Momentive is the global leader in the Chemical Industry and this gives it an upper hand if the cosmetic that has no traces of silicon is developed. The current wide consumer base gives the company the certainty that the product is more likely to be consumed once it is developed. This way, successful development of the product does not face a great risk. The company would easily influence consumption since it would be able to convince its customers on the fact that the new cosmetic is far much better and safer for the customers (Armstrong, 1996).

Momentive is a company that is financially stable. It is the global leader in the production and sales of chemicals. This translates to the fact that the company can be able to finance for research and development activities in a bid to develop cosmetics that are free of the product silicon. Lack of financial stability and strength is a factor that causes hardships and a barrier to the development of new products and services, especially small and medium sized companies (Armstrong, 1996).


The greatest weakness in producing or manufacturing cosmetics that have zero component of the compound silicon is ensuring that the new cosmetics have exactly similar or better quality and characteristics that could have been attracting consumers when the chemical silicon was included in the end products. Other market players and competitors could exploit the opportunity and try to make consumers see and think that the company was selling poor quality products knowingly. This could greatly harm the reputation of the company and its products globally. The new cosmetics must be made the company to appear like new or reformed products but the negative aspect of silicon that was rid off not be included to be among the reasons for the new cosmetic products (Westhues, 2001).

The sales of the company could decrease rapidly or be affected in a big way if the new cosmetics to be developed are to take the place of already existing cosmetic products, that are being highly consumed and that are liked by customers. The already existent products definitely have the chemical silicon in them. Once the new products that are free of silicon are introduced, the fact that they lack silicon in them could make them lose certain characteristics. This could make the products to lose attractiveness by their consumers and consumption could reduce drastically. This could affect the goals and targets of the company in a great way in terms of sales (Armstrong, 1996).


Many producers and manufacturers of cosmetics always use silicon as a component chemical compound. Many of these companies can barely manufacture cosmetics that are void of this chemical compound. However, the compound is harmful to their consumers in many different ways. According to trends in the current day and age, people are concerned more about the safety of products they consume. If the company could be capable of producing products that have zero compounds of silicon, and the company explain it to the clients on the importance of using the cosmetic that is free of silicon, then it is expected that there being no other silicon free cosmetics, it would be much easier to attract a wider global consumer base since many consumers would prefer t consume products with no silicon compounds in them (Westhues, 2001).

Many governments in the world have been banning cosmetics that are likely to affect the health of their consumers. This way, many countries have a deficiency of cosmetics. The innovation and subsequent development and manufacturing of products that have no silicon components in them is expected to attract support of governments and greater access to customers globally (Agrawal, 2013).


The greatest threat to the development of the new product is if it the innovation fails to produce cosmetics that are suitable enough and meet the standards that customers require. Failure to meet the requirements of customers could affect consumption and subsequent sales by the company. This would be dangerous for continued growth and development of thee company globally.

Technological advancements in the modern day and age are also a big threat. Through the application of advanced technologies, other cosmetic companies would easily develop products at greater ease and costs while Momentive invests a lot of its capital in research and development of silicon free cosmetics. If other companies apply technology, the cost of their products would be much lower and production would be more efficient hence beating the company in terms of sales (Westhues, 2001).

Environmental Analysis

Failure to use silicon chemical compound in the manufacture and subsequent development of the company’s products is aimed at reducing and cutting on the company’s contribution towards environmental pollution and degradation. The company aims at in every way possible; reduce the amount of environmental damage caused by the operations of the company. The company aims at enhancing and promoting sustainability and promoting environmental conservation as much as possible.

Business Model and Strategic Plan Part III


There is a strong belief that though there has previously been no cosmetic products’ lacking the compound silicon, the development of products with no silicon will be a dream come true at Momentive. The new product is also expected to have no negative effects and impacts on the skin of consumer. It is also assumed that a shift by consumers from using cosmetic products that have silicon to those that do not have the chemical component is to be smooth and with little or no hurdles or negative impacts in anhy given way (Agrawal, 2013).


The sales of the company are highly at stake. Failure to have a smooth transition would mean that it would be harder and more complicated for consumers to turn round and back to using the old products. The company would also not turn back to old products since it would make consumers to have little trust in the company.

Summary of Strategic Objectives

The new cosmetic products with little or zero content of silicon are the primary goal of the new innovation. The new product has a long term objective of building and enhancing the trust of customers in the company’s products and ensuring that the consumers of the company’s products are safe from any health hazard that could be as a result of silicon content or traces in their cosmetic products. The new cosmetic products are expected to have better reception by customers who will feel safer as they use the new products.


The new cosmetic products that are expected to be free of the chemical product silicon are meant to be an innovation that is a key objective in the company’s vision and goals. The company aims at embarking on innovation in product development to ensure that the developed products suit the needs of their customers.


Agrawal, N. (2013). “Silicone-induced granuloma after injection for cosmetic purposes: A rare entity of calcitriol-mediated hypercalcemia”. Case Reports in Medicine .

Armstrong, M. (2006). A handbook of Human Resource Management Practice. London: Kogan Page .

Armstrong, M. (1996). Management Processes and Functions. London.

Menon, A. (1999). “Antecedents and Consequences of Marketing Strategy Making”. Journal of Marketing .

Sarah, K. (2006). Silicone’s scary side effects. SALON .

Westhues, A. (2001). “A SWOT analysis of social work education in Canada”. The International Journal .