An Individual Report on
British Commercial Investments (BCI) Ltd.
BA _____
General Management
Submitted to:
Submitted by:
28 March 200_
I. Case Overview
British Commercial Investments Ltd. (BCI), a diversified holding company based in London, has 16 subsidiary companies operating in various industries including production of oil drilling equipment and electrical instruments, special steel fabrication, asphalt products, and construction of agricultural buildings. Recently there is a shift in emphasis in corporate objectives and investment efforts, namely, internal expansion of the existing subsidiaries and acquisition of related companies. Another change is geared towards an increased focus on formal planning through the BCI three-year forecast which is instituted to sustain and reinforce the strength of the firm.
These recent efforts resulted in changes in the relationship of BCI with its subsidiaries. The BCI parent company offers support services to its subsidiaries by appointing director nominees, who usually take the role of chairman of the board, to the subsidiaries. The director nominees try to initiate reforms in the subsidiaries and also share their experiences and expertise. In particular, the case focuses on the ensuing relationship between BCI, through its director nominee to the subsidiary as represented here by Mr. Henry Lampton, and the top management of Harrogate Asphalt Products Company, one of the subsidiaries of BCI Ltd. Mr. Lampton wanted to initiate changes in Harrogate but he experienced difficulties due to the refusal of Paul Denham, the Harrogate Managing Director, to cooperate.
II. Assumptions
The case will be analyzed from the point of view of Mr. Hen ...