Lafarge (B): Looking to the Future

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Case

Reference no. 306-518-1

Subject category: Strategy and General Management

Authors: Ashok Som

Published by: ESSEC Business School

Originally published in: 2006

Version: 1 September 2014

Revision date: 10-Sep-2014

Length: 10 pages

Data source: Field research

Topics: Chief executive officer (CEO) succession; Portfolio restructuring; Organisational restructuring; Change; Internationalisation; Industry consolidation; Strategy; Growth; Emerging country; Albert Frere; Building materials; Cement industry; Holcim; China; India

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Abstract

This is the update of the case 'Lafarge: From a French Cement Company to a Global Leader'. The case discusses the recent changes that Lafarge faced after there was a chief executive officer (CEO) succession. It discusses what usually new CEOs do after they assume power and how the global 'mantra' of value creation is a prime concern for all. The case also discusses how a single powerful shareholder can influence the destiny of a 170 year-old organisation and how top-management responds to such a challenge. The update ends with growth opportunities in emerging countries and compares successful operations in China with not as successful growth in India.

Location:

France, China, India

Industry:

Building, construction material

Size:

Sales EUR16 billion, 80,000 employees in 76 countries

Other setting(s):

2003-2006