Hermann Gudmundsson, the CEO of Esso Iceland (supplier of fuel and lubricants) was expected to start merging Esso Iceland with Bilanaust, an Icelandic automotive spare parts retailer with the end result of an unified entity that would be dominant in its respective industries. The Icelandic economy was growing at favourable rates and Esso had have its standing as the leading fuel supplier in Iceland for the previous 60 years with 40 per cent of the market.
Gudmundsson and his associates bought Esso Iceland in 2006 from a private equity firm that had been focused on stripping Esso Iceland down to its core fuel business, using staff decreases as part of a price-reduction plan. Gudmundsson believed that Esso Iceland had untapped riches that could just be improved by the cross selling synergies formed as an effect of a successful integration of over 500 accounts in both firms. His overriding concern was to direct the organization that is combined to attain these targets in the next two years without destroying shareholder value.
PUBLICATION DATE: September 03, 2010 PRODUCT #: 910C16-PDF-ENG
This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE
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