Strategy

This research paper aims to explore the rationale behind the decision to spin-off a division from a large steel company from the rest of the Group. Second, the research will assess if the initial objectives behind this corporate spin-off have been achieved. The research will then shed light on the key success factors leading the divested unit to increase performance against competition after its separation from the parent Group.  

Building on the in-depth study of the spun-off entity genesis, reorganization, and strategic development, the case study shows clear evidence that the spin-off has been the catalyst for improved performance against the competition. However, the initial objectives behind the separation deal have only been partially achieved.  The case also highlights the rich nuances of how the divestment has affected the singular trajectory of the spin-off entity within its Industry, providing context to create unique strategic opportunities combining internal organization considerations and external competitive and cooperative interactions.