The business development manager for General Electric (GE) Canada, met with executives from GE Supply, a US-based distribution arm of GE. The purpose of the meeting was to discuss new business opportunities in energy management and efficiency. The business development manager had identified some opportunities for business development in Canada, while leveraging GE's strategic capabilities did not fit well with GE's corporate structure. He was keen to work with GE Supply but wanted to retain a high level of operating autonomy. The challenge was to put together an appropriate organizational structure and find a home for the new development idea. (A sequel to this case is available, titled GE Energy Management Initiative (B), case 9A94G006. A 12-minute video may also be purchased with this case, video 7A94G005.)
In a fast-moving, increasingly competitive world, a firm's only enduring source of advantage is its knowledge. Managing that knowledge is therefore crucial, and this article offers suggestions on how leaders can meet that challenge effectively. The author describes a practical six-step process for making knowledge management work. The process he describes will interest CEOs and managers of global corporations as much as it will entrepreneurs of small and medium-sized firms.
The CEO of the Sandvik Group is reviewing the initiatives he implemented to increase the synergies between the six disparate businesses of the Sandvik Group. Specific measures taken by Sandvik's management to increase the level of synergy between the businesses are outlined. In search for synergy, management has experienced many problems and challenges. The main challenge is how to avoid a re-centralization of power while at the same time encouraging employees to act with regard to both their business and the group. The case 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. This case can be used as an advanced corporate strategy case, to illustrate concepts such as diversification, synergies, and parenting advantage. It can also be used as a management of change case by putting emphasis on the actions the CEO can take to achieve his stated goals. A follow-up case (9A98M013) is available.
The business development manager for General Electric (GE) Canada, met with executives from GE Supply, a US-based distribution arm of GE. The purpose of the meeting was to discuss new business opportunities in energy management and efficiency. The business development manager had identified some opportunities for business development in Canada, while leveraging GE's strategic capabilities did not fit well with GE's corporate structure. He was keen to work with GE Supply but wanted to retain a high level of operating autonomy. The challenge was to put together an appropriate organizational structure and find a home for the new development idea. (A sequel to this case is available, GE Energy Management Initiative (B). A 12-minute video may also be purchased with this case, GE Energy Management Initiative - Video.)
Six months into the operation of the energy management business, GE Energy Management Initiative has lost a bid for a large contract. Its general manager learns that the division to which it reports is getting out of the energy management business because of a questionable strategic fit within the division, and a lack of results. The general manager wonders how to proceed. (This is a sequel to GE Energy Management Initiative (A).)
The newly appointed president and CEO of Wellington Insurance, a company without hope according to a recent consultant's report, is faced with the challenge of effecting a complete revitalization at Wellington when prospects for the industry and company look bleak. The case series Wellington Insurance (B) and Wellington Insurance (B1) (Condensed B Case) provides the opportunity to experience the full breadth of strategic analysis, from analyzing the competitive options within an industry to assessing an organization's readiness and capability for revolutionary change.
The Wellington (B) case takes the position of the new chief operating officer of Wellington. He is looking back on the successful turnaround achieved by Murray Wallace (this is described in Wellington Insurance (A)), and wondering how he can build on it. In particular, he is concerned about (a) whether the high-stress environment of change that Wallace generated can be sustained, and (b) whether he is in the position to take decisive action, bearing in mind the temporary appointment of the chairman as CEO.