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 .....more

As a follow-up to the Sandvik AB (A) case (9A98M012), the (B) case outlines the organization changes undertaken in the pursuit of synergies. Students can be asked to evaluate the magnitude and appropriateness of the changes and propose other ideas. The case allows for consideration of how the CEO of a large complex organization actually accomplishes strategic change.