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ICI » Topics » Strategic alignment of ICIs businesses

These excerpts taken from the ICI 6-K filed Mar 21, 2007.
Strategic alignment of ICI’s businesses
At the last strategic review, ICI’s business units were evaluated in terms of market attractiveness (e.g. financial strength and sustainability) and competitive position (e.g. quality of products, technology and market share). Reflecting their different strengths and weaknesses, each business was then mapped onto the 2x2 matrix shown below. This matrix is fundamental to the strategic development of the business. For example, ICI intends to invest to support growth in businesses with strong positions in high-growth markets – the “grow aggressively” segments – which are more attractive in the long term. In contrast, ICI will invest to improve cost and capital effectiveness in its businesses in relatively low growth markets – the “maintain selectively” segments – with the aim of continued cost effectiveness and resilient financial performance.

           
  ICI’s strategic matrix1      
  Strategic stance        
           
    Maintain aggressively   Grow aggressively  
    Paints North America   Paints Asia  
    Paints UK & Ireland   Adhesives Asia  
    Packaging Coatings   Starch Asia  
    Pan-Atlantic Adhesives   Electronic Materials  
    Pan-Atlantic Starch      
   
 
    Maintain selectively   Grow selectively  
    Regional and Industrial   Specialty Polymers  
        Paints Continental Europe  
        Paints Latin America  
        Adhesives Latin America  
        Starch Latin America  
       
    Strategic approach  
           
   
   
1 Continuing businesses only.

Strategic alignment of ICI’s businesses
At the last strategic review, ICI’s business units were evaluated in terms of market attractiveness (e.g. financial strength and sustainability) and competitive position (e.g. quality of products, technology and market share). Reflecting their different strengths and weaknesses, each business was then mapped onto the 2x2 matrix shown below. This matrix is fundamental to the strategic development of the business. For example, ICI intends to invest to support growth in businesses with strong positions in high-growth markets – the “grow aggressively” segments – which are more attractive in the long term. In contrast, ICI will invest to improve cost and capital effectiveness in its businesses in relatively low growth markets – the “maintain selectively” segments – with the aim of continued cost effectiveness and resilient financial performance.

           
  ICI’s strategic matrix1      
  Strategic stance       
           
    Maintain aggressively   Grow aggressively  
    Paints North America   Paints Asia  
    Paints UK & Ireland   Adhesives Asia  
    Packaging Coatings   Starch Asia  
    Pan-Atlantic Adhesives   Electronic Materials  
    Pan-Atlantic Starch      
   
 
    Maintain selectively   Grow selectively  
    Regional and Industrial   Specialty Polymers  
        Paints Continental Europe  
        Paints Latin America  
        Adhesives Latin America  
        Starch Latin America  
       
    Strategic approach  
           
   
1 Continuing businesses only.

EXCERPTS ON THIS PAGE:

6-K (2 sections)
Mar 21, 2007

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