Subject category:
Strategy and General Management
Published by:
IBS Case Development Center
Length: 13 pages
Data source: Published sources
Abstract
Thor Industries, the world''s biggest recreational vehicle manufacturer, has become the market leader by acquiring companies, allowing them to operate independently and giving them autonomy to compete with each other. The managers of the acquired companies operate like entrepreneurs and are rewarded with a percentage of the division''s pre-tax profits with no higher limit set as to what they can be paid. The case offers scope for discussing how the company managed the constituent units, offering them autonomy, encouraging competition and how it became a market leader.
About
Abstract
Thor Industries, the world''s biggest recreational vehicle manufacturer, has become the market leader by acquiring companies, allowing them to operate independently and giving them autonomy to compete with each other. The managers of the acquired companies operate like entrepreneurs and are rewarded with a percentage of the division''s pre-tax profits with no higher limit set as to what they can be paid. The case offers scope for discussing how the company managed the constituent units, offering them autonomy, encouraging competition and how it became a market leader.