l looking for ways to further integrate and produce synergies amongst Sandvik’s business areas. Integration has already occurred or is being studied in human resources, marketing, and information technology. However, disagreement exists amongst managers over the amount and level at which integration is needed. Employees are also concerned about a return to centralized decision-making and loss of autonomy over their business area. Finally, it is still unclear how the cost, fit and significance of further integration may impact business area needs. The uncertainty surrounding these issues makes the whole idea of integration to create synergies questionable. My recommendation aims at allaying the fear of a return to centralized decision-making and autonomy loss. Hedstrom has visited operating units around the world and articulated the case for greater synergies between business areas. However, he has been unsuccessful at relieving the aforementioned fears and persuading employees to start acting in the interest of the Sandvik group rather than their own business. Employees probably view Hedstrom as an outsider unaware of their business needs. Therefore, I suggest Hedstrom utilize a bottom-up approach in implementing any changes. This permits managers from all business areas to participate in the process. Such transparency allows managers to judge first hand if the changes are going to diminish the autonomy of their business area. Fortunately, the gradual nature of the bottom-up approach provides the time to resolve any problems managers have with the changes. ...
