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 or Legal
o There was a newly deregulated bus transportation market (1981 bill that deregulated the intercity bus business)- had to be able to charge competitive fares- could not be a low cost provider of bus transportation- lost competitive edge
Could anything have been done to control environmental factors?
? In the case of leadership of the company- needed to be more accountable for each product line and business etc- grouping things together too much leads to troublesome oversight
? More research before announcing big decisions
In what ways did environmental factors distort the picture of Greyhound’s performance?
? Way case was written- seemed like something was always going wrong- never could get on top of the market share or any specific business for long before they would have to go do some fixing of something else displayed 300 characters
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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 or Legal
o There was a newly deregulated bus transportation market (1981 bill that deregulated the intercity bus business)- had to be able to charge competitive fares- could not be a low cost provider of bus transportation- lost competitive edge
Could anything have been done to control environmental factors?
? In the case of leadership of the company- needed to be more accountable for each product line and business etc- grouping things together too much leads to troublesome oversight
? More research before announcing big decisions
In what ways did environmental factors distort the picture of Greyhound’s performance?
? Way case was written- seemed like something was always going wrong- never could get on top of the market share or any specific business for long before they would have to go do some fixing of something else displayed 300 characters
