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Burmah Castrol Chemicals Group - Strategic capabilities

Burmah Castrol Chemicals Group - Strategic capabilities . Managing customer interfaces Applications rather than manufacturing know-how Bringing new ideas to market based on customers’ needs Intimate knowledge of customers’ businesses to generate new ideas & applications

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Burmah Castrol Chemicals Group - Strategic capabilities

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  1. Burmah Castrol Chemicals Group - Strategic capabilities • Managing customer interfaces • Applications rather than manufacturing know-how • Bringing new ideas to market based on customers’ needs • Intimate knowledge of customers’ businesses to generate new ideas & applications • Focus on small, often localised, market niches • Requirement for team collaboration in terms of marketing, technological and commercial skills

  2. Burmah Castrol Chemicals Group:Role of the Centre - View 1 • Centre sets targets and monitors performance - financial control • Acquisition and disposal but don’t interfere in SBU workings - portfolio management • Purpose - set expected returns to shareholders and monitor • SBU Portfolio - based on ability to generate expected returns • Structure and control - large & diverse group of SBUs operating relatively autonomously

  3. Burmah Castrol Chemicals Group:Role of the Centre - View 2 • Centre directs strategy - strategic planning • Aspiration - global chemicals business • SBU Portfolio - based on fit with global aspirations • Structure & Control - smaller group of global SBUs with centralised direction of strategy, sharing knowledge and resources

  4. Burmah Castrol Chemicals Group:Role of the Centre - View 3 • Centre encourages skill & knowledge transfer and sharing of resources between SBUs - strategic control • Aspiration - developing high margin, service orientated, industrial consumables business where knowledge of customer applications is critical • SBU Portfolio - based on fit with service aspirations • Structure & Control - smaller group of SBUs that benefit from group’s assistance in developing capabilities to meet aspirations; perhaps some SBUs operating more autonomously

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