CASE 4 SAMARTH RAO AND HIS “ALCOA” PROJECT
On a recent summer day in Hyderabad, CEO Samarth Rao unveiled his plans for Aluminum Co. of Andhra (Alcoa), the basic materials giant. What he presented was nothing short of a complete overhaul of a corporation that employed more than 30,000 people across 22 countries. He proposed a new structure that would focus on Alcoa customers and business units—“not Hyderabad, not the vice-presidents who service them, not the chairman—but business units.” Pooled corporate resources would exist for the sole purpose of linking and supporting the company's 22 business units.
Corporate structure was not the only thing about to change. By way of introducing the company's new strategy, Rao challenged the popular notion ...
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