Greyhound Dial
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Greyhound Dial Case
What environmental factors affected Greyhound’s businesses?
Macroenvironment affects the intensity of rivalry within an industry.
Demographic
Technological
High production costs, inefficient plants
Products they would acquire are easy and inexpensive to imitate by much larger companies
Cultural
Trautmans style vs Teets (new)
Trautmans: ambitious about expansion and diversification
Teets: cost cutter, effective hands on manager, liked to stay close to action, domination with labor unions, overall more laid back
Jozoff: P&G veteran, understand how to fashion a business model to promote profitability- saw lack of a differentiated appeal- entered into some joint deals- bring into direct competition
Baum: experience with similar type products (bread&butter)- recognized importance of finding the right strategy- made the products speak and fight for themselves number wise
Economic
Hoped vast array of business would be recession proof
There was a recession in the real estate market in 1987 right when Greyhound announced its intention to sell Verex (financial)- bad timing
1995- wanted to increase company’s ROE and stock price, so began to slash costs- reduce advertising budget
Trying to create value
Government