Sandvik AB (A‪)‬

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.