In 2006, Hermann Gudmundsson (the Chief Executive Officer [CEO] of Bilanaust, an Icelandic vehicle spare parts retailers) was part of a group of partners who had bought Esso Iceland. He had subsequently been appointed the CEO position at Esso Iceland. The two companies were quite different: Bilanaust treated with real-time needs of customers, wore a wide range of products, and enjoyed an increasing market share and profits. Esso Iceland was 12 times as large as Bilanaust, sent in developi … Read more »

In 2006, Hermann Gudmundsson (the Chief Executive Officer [CEO] of Bilanaust, an Icelandic vehicle spare parts retailers) was part of a group of partners who had bought Esso Iceland. He had subsequently been appointed the CEO position at Esso Iceland. The two companies were quite different: Bilanaust treated with real-time needs of customers, wore a wide range of products, and enjoyed an increasing market share and profits. Esso Iceland was 12 times as large as Bilanaust, sent in the development and implementation of medium-to long-term strategies, and was active in a stagnant market. Gudmundsson assesses the opportunities before him, could be a successful merger of the two companies are bred, or it would be better to get two separate units upright? He noted that a lot of work needs to be done to gain consensus on the right strategic direction for the future. Careful thought identified three initial areas of focus: 1) improving staff morale, 2) a sense of optimism, and 3) placing effective leaders at key points in the organization
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Ken marks
Gerard Seijts
Source: Ivey Publishing
6 pages.
Release Date: 03 September 2010. Prod #: 910C15-PDF-ENG
Merging Esso Iceland and Bilanaust (A) HBR case solution

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