Glencore, Xstrata Case
Overview
Corporations often seek to acquire other companies. However, many of these acquisitions are misguided. This discussion helps you to understand how companies can create additional value through a diversification strategy. The Glencore, Xstrata case discussion helps you to apply your knowledge to understand the potential internal problems associated with diversification.
¢ What type of company did Ivan Glasenberg lead prior to the merger? Did he change the Glencore’s strategy, management structure, and systems?
¢ Was Glencore successful under Ivan’s leadership? Did he encourage wise growth through mergers? Explain.
¢ What can be said of Xstrata s CEO Mick Davis leadership and efforts to improve the firm’s financial situation?
¢ If you were the CEO of Glencore, Xstrata, what actions would you take immediately? Within the next year? Over the long term? What resources do have at your disposal to enhance the reputation of the firm and turn it round?