Strategic Analysis Case Study Burton Group 1976-90

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MA in Management 2001-02. Strategic Analysis Case Study Burton Group 1976-90. Presented By. Joseph TaylorRoxie Whittle Glafkos TofaridesDan Worrall Pooja VaswaneyKei Yoshimura. Objective. Background Sir Ralph Halpern Features of the Strategy Logic of the Strategy - PowerPoint PPT Presentation

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Strategic Analysis Case Study

Burton Group 1976-90

Joseph Taylor Roxie Whittle Glafkos Tofarides Dan WorrallPooja Vaswaney Kei Yoshimura

MA in Management 2001-02

Presented By

Objective

Background

Sir Ralph Halpern

Features of the Strategy

Logic of the Strategy

Acquisition of Debenhams

Causes of Decline 1988-90

Conclusion

Background to Burton

Expansion (-1990)

Clothing Retailer; Traditional Family Business

Founded anonymously as ‘Montague Burton’ in 1900

Known as ‘Arcadia Group Plc’ since 1998

Peter Robinson (46), Topshop (65), Evans (71), Top Man (78), Dorothy Perkins (79), Principles for Women (84) and for Men (85), and Debenhams (85)

Arcadia SubsidiaryBurton MenswearDorothy PerkinsTopshopEvansPrinciplesRacing GreenHawksheadMiss SelfridgeWallisWarehouseOutfit

Arcadia SubsidiaryBurton MenswearDorothy PerkinsTopshopEvansPrinciplesRacing GreenHawksheadMiss SelfridgeWallisWarehouseOutfit

Sir Ralph Halpern

The Catalyst to Change‘You have to understand, he has immeasurable ego and immeasurable confidence – perhaps they are the same thing. The guy just exudes confidence.’ (one of his team, early 80’s)

1939-

‘I developed a multi-brand strategy which had become the basis of multiple retailing in the UK’ (himself)

Features of the Strategy

Company Portfolio

Centralised Policy Making

Re-structuring

Continuous Updating of Image

Expansion

Change in Ethos

Features of the Strategy

Company Portfolio

Centralised Policy Making

Re-structuring

Continuous Updating of Image

Expansion

Change in Ethos

Logic of the Strategy

Short-term Success

Internal Finances

Rapid Expansion

Acquisition of Debenhams

Advantages Disadvantages

Increase market presence

Image enhancement

Changing their successful formula

Under one roof

Comprise financial stability

Overall, Externally; A Good IdeaInternally; A Gamble

Causes of Decline(1988-90)

Recession

Loss of confidence by the City

DTI Investigation resulted in a fall in consumer confidence

Negative media attention

Acquisition of Debenhams

Conclusion

Over stretched and left themselves vulnerable

‘Quick Fix’

Narrow focus Short-term success

Lack of clarity in the long-term

Questions or Comments?

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