strength:

- burmahcastrolhadaverysuccessfuldevelopingworldposition,particularly
inAsiaPacific.however,thecompanyhadadifficultyearaboutlongrun
developmentsinthepassengercarengineoilbusinessinEuropeandNorth
America
- ThecompanysuccessfulbuyFosecowhichacompetitioncompanyinthe
early90s.becauseFosecohadlostitsway;itssharepricewasverydepressed.
- Chemicalsbecamehigherperformerthroughcostcutting.Ex:high
performing.
Weakness:
- They were Reduce in share price in Castrol.Theirshareprice
reached10intheearly1990.Itmovedto13atonepointanddownto7.
- Lackofvisionthataffectedcompanyinternally.by1999,Internallytherewas
somefeedbackaboutthelackofvisioninthecorporation.Afterthat,theyhad
aseriesofmeetingCEOaboutfindingaclearbannerforthefutureofthe
corporation.Butitnotsuccessfulsoithadsomelackofbeliefinternally,lack
ofbeliefexternallyandapossiblytimelimitedopportunityasaresultofoil
industryconsolidation.
- ThecompanyNotbeingmarketresponsive.vulnerabletoeconomiesofscale
Opportunities:
- expansion.ItmeanthatincreaseinsizethroughacquisitionoftheChemicals
portfolio.
- Implicationsofconglomeratecreation
- Abilitytoimproveoperatingefficiency
Threat:
- Overexpansioncouldhaveimpactonmanagementwhichcouldstart
operatingreactiveratherthanproactive
- Substantial(75%)dependencyoftotalprofitsonsingulartierwithinthe
structure.ex:engineoilbusiness,whichrepresented75percentoftotal
profits,facedtheprospectofmoreefficientenginesrequiringlongerand
longergapsbetweenoilchanges;soitcanlongtermvolumedecline.
Recommendation CEO:
- Initiallyapproachothermajorplayeri.e.Exxon,seekinvestorsinmideast.
- Fusiondevelopment.Ex:restructurewithfocusonsaleandmarketing,besides
itsellingunrelatedchemicalunits.
Recommendation sale of BC:
- theyshouldfaceofvalueprovisiontoshareholders,bigcompetitorsandtheir
abilitytoutilizeeconomiesofscale.itwouldbeadvisabletosellthebusiness.
-

theyshouldimproveabilitytostrategicallyallywithmajorcompetitorsgrows
concernofbeingsuccessivelydamagedtoanextentthatcompanymust
continuouslyrestructure