HOME
ABOUT
A
BLOG & NEWS
CASE STUDIES
September 28, 2015
|
Senthil Kumar
ALCOA Another company to join the stream of companies doing right sizing and shoaling form of corporate governance.
Metals firm Alcoa said on Monday it would split into two publicly traded entities, acknowledging that its legacy aluminum operations and higher-value and automotive businesses were diverging and no longer compatible.
New York-based Alcoa's traditional smelting business has been hurt by a ballooning surplus of aluminum, which has caused prices to sink and deepened the industry's worst crisis in years.
At the same time, the company has bet on growth from higher-margin titanium and high-strength aluminum sales to the aerospace industry, citing a growing order book for airplane production and renewed global spending on automobiles. Airplane manufacturers have turned to lightweight titanium from aluminum and automakers to new, strong aluminum alloys instead of high-strength steel to improve performance and fuel efficiency.
Klaus Kleinfeld, Alcoa chairman and CEO, said on Monday that it was the "right time to split the business."
He said the right size, strength and scale of the two businesses "allows us to put both businesses onto their own path independently to pursue their own strategies, which are very distinct."
Tags:
Shoaling
right sizing
split up
Shifting Sands Whilst Sifting for Profits: Volatile Markets & Crisis for Management
May 11, 2018
To Turn the Porter's Nail on Its Head...
March 27, 2016
Trustworthiness
August 1, 2019
Keep the Farmers Happy: A Global Appeal
May 14, 2020
GDP: A Misnomer? And Misinterpretations in the Context of India’s Economy….
January 30, 2020
Strategy: Competition VS Cooperation
September 10, 2019
Toward... a World of Free Energy or Free of Energy Cost
July 3, 2019
Power of Positive Words
February 7, 2019
Trust Equity: A Strategic Imperative
February 12, 2018
What is Your Firm's Financial Trend?
October 4, 2017
May 2020 (1)
January 2020 (1)
September 2019 (2)
August 2019 (1)
July 2019 (1)
February 2019 (1)
May 2018 (1)
February 2018 (1)
October 2017 (1)
September 2017 (1)
June 2017 (1)
March 2017 (1)
February 2017 (2)
December 2016 (1)
November 2016 (2)
October 2016 (2)
September 2016 (1)
July 2016 (3)
June 2016 (3)
April 2016 (1)
March 2016 (2)
February 2016 (3)
January 2016 (1)
November 2015 (2)
September 2015 (4)
August 2015 (1)
July 2015 (3)
June 2015 (1)
May 2015 (1)
Bureaucratic cost
Business Strategy
Change
Competitive strategy
Conglomerate
Convergence
Corporate strategy
Crisis for Management
Disentropy
Energy
Energy policy
Family
GDP
Get ready for action
Google
Government
India
Innovation
Innovation Management
Kaleidoscopic organization
Mini Stock exchange
Mobile phones
ROA
ROE
Renewable energy
School of fish
