Burton Group Ralph Halpern
Background Burton Group ( ) Ladislas Rice Company in crisis - competition between divisions - too many acquisitions - change takes too long
Outline of Strategy Implemented ( ) Move from losses to profit - focus on profitable Strategic Business Units (SBU’s) - solve manufacturing overcapacity - compete with market leaders New organizational culture
New organizational structure - right to vote for not voting shareholders - open system - centralise decision making
What is the logic behind the strategy?
Balance Streamline Focused Profitable (effective & efficient) Dynamic
In the light of Ralph Halpern success…did the acquisition of Debenhams make sense?
Yes Growth On a high Institutional support Boom period No Timing.. “too soon” Short termist Not fashionable Too ambitious
What were the causes of the decline of the Burton Group from 1988 to 1990?
DTI investigation Lack of clarity Recession - the property slump - Sharp rise in debt Bad publicity of - the company - Ralph Halpern
Any questions?