Subject category:
Strategy and General Management
Published by:
International Institute for Management Development (IMD)
Version: 17.06.2003
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https://casecent.re/p/11953
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Abstract
This case asks the reader to take the perspective of a board member of ICI, the British chemical company, in April 1996. Charles Miller Smith, the Chief Executive Officer of ICI, is asking for permission to approach Unilever about the possibility of buying four businesses (code name Mayflower) for a sum that could be between £4 and £5 billion. This appears to be a ''bet the business'' decision as this sum is close to the total market capitalisation of ICI. The case permits both a strategic and financial review of the decision. The deal did take place, but this is not apparent from the case. This case was submitted for inclusion in the Indiana University CIBER Case Collection through a CIBER-sponsored case competition.
About
Abstract
This case asks the reader to take the perspective of a board member of ICI, the British chemical company, in April 1996. Charles Miller Smith, the Chief Executive Officer of ICI, is asking for permission to approach Unilever about the possibility of buying four businesses (code name Mayflower) for a sum that could be between £4 and £5 billion. This appears to be a ''bet the business'' decision as this sum is close to the total market capitalisation of ICI. The case permits both a strategic and financial review of the decision. The deal did take place, but this is not apparent from the case. This case was submitted for inclusion in the Indiana University CIBER Case Collection through a CIBER-sponsored case competition.