Greyhound Dial
Essay by 24 • January 12, 2011 • 292 Words (2 Pages) • 1,068 Views
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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