Product details

The central issue in this case is how to merge the operations of two large multinational companies. Schneider Electric (SE) (a French multinational with euros 8.8 billion sales in 2003, 75,000 employees, 150 manufacturing facilities in 130 countries), decides to merge its subsidiaries in seven Nordic and Baltic countries with those of Lexel (a Nordic company with euros 600 million sales in 2003, 5,200 employees and 44 operating units in 18 countries), a company that it acquired in 1999 but left alone until now. A small Danish consulting firm, Valcon, is brought in to help with the merger. The new integrated unit Schneider Nordic Baltic (SNB) will be the third largest SE subsidiary (after US and France). In resolving how the different businesses of SE Nordic and Lexel can be combined into one organisation the case highlights key challenges that need to be dealt with in just a few months. It is a multidisciplinary case comprising the strategic, operational and change management issues, which the management have to face. Among these, a critical one is how to position Lexel's main product line, called Ultra Terminals, within SE. In the new organisation the R&D unit is not reporting to the CEO (Chief Executive Officer), even though it is physically located in a building next to his head office in a suburb of Copenhagen. A DVD (605-016-3) is available to accompany this case. A teaching note supplement '605-016-9' is available to accompany the teaching note.