• How would you go about solving the issues of

a)Organize along the commodity lines, geographically, or both

b)Full Autonomy/ Centralized Controlc)Group directors?d)Group Directors and Business Unit Heads

INTRODUCTIONINTRODUCTION

Need for modifications?Need for modifications?

• Lack of focus

• Appalling safety record

• Structure and Culture

• Portfolio of products?

Organization StructureOrganization Structure

DECENTRALIZED HISTORIC DIVISIONAL STRUCTURE

JOHANNESBURG

LONDON

Decentralized & Autonomy

Economies of scope

Synergy

Best practices

Organizational ControlsOrganizational Controls

Actual Results with expected result

Strategic Controls

- External Environment & Competitive advantage

Financial Controls

- Return on Assets and Return on Investment

Value Creating DiversificationValue Creating Diversification

Operational R

elatedness

Corporate Relatedness

Low high

LowH

igh

SBU M-FormSBU M-Form

NEW DIVISIONAL STRUCTURE

Chile Brazil South AfricaAustrali

a

Commodity lines with geographic divisions

Moderate Autonomy & Centralization

Economies of scope ( Procurement)

Shared best practices

Synergy between business unit

Reemploy Chief strategic officer

Thanks for listening