Strategic Analysis Case Study Burton Group 197690

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Strategic Analysis Case Study Burton Group
1976-90
MA in Management 2001-02
Presented By

• Joseph Taylor Roxie Whittle Glafkos
  Tofarides Dan WorrallPooja Vaswaney Kei Yoshimura

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Objective

• Background
• Sir Ralph Halpern
• Features of the Strategy
• Logic of the Strategy
• Acquisition of Debenhams
• Causes of Decline 1988-90
• Conclusion

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Background to Burton

• Clothing Retailer Traditional Family Business

• Founded anonymously as Montague Burton in 1900
• Known as Arcadia Group Plc since 1998

• Expansion (-1990)

Peter Robinson (46), Topshop (65), Evans (71),
Top Man (78), Dorothy Perkins (79), Principles
for Women (84) and for Men (85), and Debenhams
(85)
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Sir Ralph Halpern
1939-

• 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 80s)

I developed a multi-brand strategy which had
become the basis of multiple retailing in the UK
(himself)
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Features of the Strategy
Change in Ethos

• Company Portfolio
• Centralised Policy Making
• Re-structuring
• Continuous Updating of Image
• Expansion

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Re-structuring in Early 80s
Each division has functional senior executives
reporting directly to functional managing
directors
Functional Managing Directors
i.e. shop operations, merchandising, concession,
finance, personnel and systems
Divisional ManagingDirectors
Divisional ManagingDirectors
Div.
Div.
Div.
Div.
Div.
Div.
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Features of the Strategy
Change in Ethos

• Company Portfolio
• Centralised Policy Making
• Re-structuring
• Continuous Updating of Image
• Expansion

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Logic of the Strategy

• Short-term Success
• Internal Finances
• Rapid Expansion

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Acquisition of Debenhams
Internally A Gamble
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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

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Conclusion

• Quick Fix

• Narrow focus

• Short-term success

• Lack of clarity in the long-term

• Over stretched and left themselves vulnerable

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Questions or Comments?