Greyhound Dial

Greyhound Dial Case

What environmental factors affected Greyhound’s businesses?

Macroenvironment affects the intensity of rivalry within an industry.

 Demographic

 Technological

o High production costs, inefficient plants

o Products they would acquire are easy and inexpensive to imitate by much larger companies

 Cultural

o 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

o Hoped vast array of business would be recession proof

o There was a recession in the real estate market in 1987 right when Greyhound announced its intention to sell Verex (financial)- bad timing

o 1995- wanted to increase company’s ROE and stock price, so began to slash costs- reduce advertising budget

o Trying to create value

 Government

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