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SPLITTING THE COMPANY
Why ICI choose to demerge
Under what conditions could ICI have avoided a split up?
The long existing and successful company, ICI, faced a serious crisis during the eighties, due to a large mismatch between its corporate strategy and the needs of its individual businesses. Only the beginning of the next decade would bring relief: ICI decided to demerge into two separate firms, Zeneca and the new ICI. This huge decision could have been avoided under the following conditions.
First of all, this large multinational tended to look inward, not outward. Hostage to its legacy, ICI's policy was dominated by consensual decision making which retarded the procedures, tradition and emotional ties. Even though a series of changes were implemented during the eighties, ICI kept overlooking external conditions like fast growing and developing technologies and changing market and competition tendencies. A more open, aware corporate policy could have weakened the......
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Title: Ici
Approximate Word Count: 965
Approximate Pages: 4 (250 words per double-spaced page)
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