Case Name :      Sandvik AB (A)

Authors :           Julian Birkinshaw, Roderick E. White, Robin Teigland

Source :             Ivey Publishing

Case ID :            98M012

Discipline :        General Management

Case Length :    29 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

The CEO of Sandvik Group is reviewing the initiatives he implemented since assuming leadership of the group. The case focuses on his attempts to increase the synergies between the six disparate businesses of the Sandvik Group. Also briefly describes the history of the company followed by a description of the businesses and corporate management of Sandvik. Specific measures taken by Sandvik’s management to increase the level of synergy between the businesses are outlined. Concludes with a discussion of the problems and challenges management has experienced in connection with the search for synergy. The main challenge is how to avoid a recentralization of power while at the same time encouraging employees to act with regard to both their business and the group. Closes with the CEO wondering how further changes could be made to expand and sustain the search and exploitation of synergies within the Sandvik group. Written for use in Business Policy/Strategy courses in the second year of an MBA program. Can be used as a corporate strategy case to illustrate concepts such as diversification, synergies, and parenting advantage. Can also be used as a management of change case by putting emphasis on the actions of the CEO can take to achieve his stated goals.