1. Burmah Castrol Chemicals Group - Strategic capabilities zManaging customer interfaces zApplications rather than manufacturing know-how zBringing new ideas to market based on customers’ needs zIntimate knowledge of customers’ businesses to generate new ideas & applications zFocus on small, often localised, market niches zRequirement for team collaboration in terms of marketing, technological and commercial skills

2. Burmah Castrol Chemicals Group: Role of the Centre - View 1 zCentre sets targets and monitors performance - financial control zAcquisition and disposal but don’t interfere in SBU workings - portfolio management zPurpose - set expected returns to shareholders and monitor zSBU Portfolio - based on ability to generate expected returns zStructure and control - large & diverse group of SBUs operating relatively autonomously

3. Burmah Castrol Chemicals Group: Role of the Centre - View 2 zCentre directs strategy - strategic planning zAspiration - global chemicals business zSBU Portfolio - based on fit with global aspirations zStructure & Control - smaller group of global SBUs with centralised direction of strategy, sharing knowledge and resources

4. Burmah Castrol Chemicals Group: Role of the Centre - View 3 zCentre encourages skill & knowledge transfer and sharing of resources between SBUs - strategic control zAspiration - developing high margin, service orientated, industrial consumables business where knowledge of customer applications is critical zSBU Portfolio - based on fit with service aspirations zStructure & Control - smaller group of SBUs that benefit from group’s assistance in developing capabilities to meet aspirations; perhaps some SBUs operating more autonomously