Starting with Hanson's May 14, 1991 stake in ICI, the case describes the background of Lord Hanson and Lord White; the origins and history of Hanson Plc (then Hanson Trust); Hanson's approach as an acquirer and seller of businesses and Hanson's approach as an industrial manager. The case describes the nature and role of the Hanson corporate offices as well as the corporate influence that is exerted over the businesses, in terms of control, planning, resource allocation and incentives. The case ends with some of the arguments surrounding the prospective bid for ICI, and on some of the criticisms levelled against Hanson-style management.
The case examines and contrast the corporate strategy of respectively acquisitive conglomerates and diversified industrial companies; to explore how each creates economic value, and to examine the sustainability of such value creation; to examine and contrast the administrative approach and corporate influence mechanisms of conglomerates and diversified industrials; to explore the public policy issues raised by hostile takeovers and corporate restructuring.
