To compeon research and development reporng and

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Unformatted text preview: mid- 1960’s above average growth for nickel – –  European and Japanese reconstruc>on, –  Korean War, –  Cold War •  Price of nickel form 1929 to mid 1960’s is controlled by Inco. –  Steady and climbing prices –  80% market share •  1960’s sales flaeen –  Market share collapses –  70 percent in 1950s to under 50 percent in 1969 Winter 2012 Jim Love ADMS 1010 14 Porter •  Strong demand and high prices bring in compe>>on •  US Government first stockpiles nickel – then gives contracts to Inco’s compe>>on (Falconbridge and Sherrit- Gordon) •  Capital spending and long term debt rising Winter 2012 Jim Love ADMS 1010 15 Reac>on •  Cost reduc>ons –  Grubb and team reduce workforce by 4,000 or 11 per cent in 1972 –  By 1974 Inco has dropped 6,000 people from their payroll •  Restructuring •  New methods of management –  Autonomy to opera>ng execu>ves –  Beeer financial controls and cost es>ma>ng Fall 2011 Jim Love ADMS 1010 16 The price of leadership •  Grubb wants to end status of “supplier of last resort” and take a more compe>>ve stand •  Stop supplying informa>on to compe>>on –  Research and development repor>ng and industry informa>on –  Only general guidelines reported •  Move head office back to Canada (first CEO in Inco’s history to reside in Canada) –  Poli>cal? –  Labour rela>ons? Winter 2012 Jim Love ADMS 1010 17 Other moves •  Diversifica>on –  ESB Corp – baeeries –  Daniel Doncaster and Sons 1975 –  Biogen –  New Caledonia, Guatemala, Indonesia, New Caledonia, Australia and Minnesota ...
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This note was uploaded on 01/26/2014 for the course LAPS ADMS 1010 taught by Professor D.jurkowski during the Winter '10 term at York University.

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