WHE C H E M I C A L WORLD THIS WEEK SM's slogan; it allows its technical people t o utilize u p to 1 5 % of their time on any iusiness unit, headed b y a project mana. ger responsible for all phases of the new b»usiness development program. This unit contains personnel responsible for market research, product development, experimental manufacturing, and market testing. Most of these n e w business units are organized by the new products division which, is a "greenhouse for the growing o>f new businesses," he said. As companies grow large, one of their greatest dangers is that their new product development and promotional efforts will b-e insulated from top management and triat t"he controls devised will be so rigid a s to make their new product goals too fiscal a n d inflexible, according to Mr. W a l ton. Developing Business F o r e c a s t . In maki n g business forecasts for a company, it is well t o get the opinions of the people on tPie production line as well as of t h e people i n the front office because t h e other fellow w^ill t a k e more interest in a project if h e thinks it is his idea, said Lewis E . Lloyd, Dow Chemical Co. If the line people are n o t in on t h e forecasts and plans they will sHed responsibility in meeting goals set. T o keep line supervision interested in forecasts a n d planning and in taking action, tcz>p m a n a g e m e n t should make frequent inquiries about progress, which "creates a disturbed state which needles the individual into action," Lloyd said. In t h e rush of daily activities, t h e thinki n g on basic issues is too much shaped b y pzredigested information from business rraagazines and consulting services, t h e srpeaker continued. These secondary sources of information are valuable and fr-equently correct, but management should also h a v e available primary basic informali«on about t h e economy. In older industries, forecasts can be esta "Wished b y growth trend curves, b y stiidies of d e m a n d in the major consuming industries, a n d b y correlations with national indices. For new industries which a r e still growing rapidly, projections of growth trend curves, showing the percenta g e rate of growth, are the most satisfactory. A good trend line is one which integrates sound judgement about all the factors which have a bearing on t h e probleim, of which the historical data are only or*e. F o r products not yet on the market t h o speaker suggested charting pricevolmne relations to show quantities that might b e sold at any given selling price. 2&84
Louis W a r e ( r i g h t ) , International Mineral and Chemical Corp. a n d chairman of N F A board, addresses NFA meeting. True D . Morse, Undersecretary of Agriculture, looks on C&EN REPORTS:
N a t i o n a l Fertilizer Association
Farm Surpluses Are Opportunities, Not Problems, Says T. D. M o r s e Downward trend in farm income presents fertilizer industry with challenge W H I T E S U L P H U R SPRINGS, W. V A . T h e future for agriculture was never more secure and full of promise, True D. Morse, Undersecretary of Agriculture, told the 28th annual convention of the National Fertilizer Association here June 15 to 17. Efficient farmers, he said, will continue to prosper. T h e r e are those who take a dim view of what is ahead, said Mr. Morse, because we are again struggling with problems of managing so-called "surpluses". We should be thankful that we have this abundance instead of t h e hunger and meager existence that plagues three-fourths of the world's pornilation. Surpluses should be dealt with as opportunities, not problems, he declared, for abundant production gives opportunities to expand markets both at home a n d abroad. Mr. Morse reported that farm production increases have slowed down. The cost-price squeeze can b e met by all segments of the agricultural industry working together, assuming that w e have sound governmental programs. Costs of production can b e cut. Industries which promote more efficient farm programs through their sales and purchase programs insure farm prosperity. T h e r e is more concern in t h e fertilizer industry over the immediate future than during any recent years, said Louis Ware, International Minerals and Chemical Corp., CHEMICAL
Chairman of the B o a r d of the N F A . H e attributed this to w a r uncertainty, t h e changed government administration, and continued expansion in the plant food industry. He expressed t h e o p i n i o n that t h e change in Washington is t o the liking of most business men. Sufficient time must b e allowed, however, he cautioned, a n d corrective measures should not b e m a d e so fast that the agricultural industry will be made to suffer a p r i v a t e depression. In pointing to t h e ^600-million investment planned by the fertilizer industry between 1951 and 1 9 5 5 on one h a n d , a n d the current downward t r e n d in farm income on the other, Mr. W a r e said that t h e challenge to the i n d u s t r y c a n only be answered in one way: "that is, b y greater sales effort and by a d h e r i n g to good business p r a c t i c e s . . . . W e have h a d a relatively long period of easy selling, but t h e time is here for us to promote and sell more aggressively." While the a c c e p t a n c e of a reasonable food reserve as a part of our economy does not justify an u n m a n a g e a b l e agricultural surplus, our people should b e more realistic than emotional a b o u t owning a b u n d a n t food supplies, according to Russell Coleman, N F A president. The American people should demand an adequate r e serve of all storable f a r m commodities t o avoid any possible disaster. AND
ENGINEERING
NEWS
