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Abstract

The case study reviews the changing corporate strategy of Tootal Group Plc, an international textiles group which had a broad base of interests including industrial domestic sewing thread, fabrics, garments and decorative homewares, from the 1970''s until 1991 when it was taken over by Coats Viyella Plc. Students are asked to analyse the dilemmas facing a company confronted with a declining domestic market, increased competition from low cost producers in developing countries and downward pressure on margins from an increasingly concentrated retail sector. Strategies to be considered include relocation of production, increased capital investment, use of subcontractors, diversification through acquisition and relations with a major retail chainstore customer with stringent quality standards and delivery schedules.
Location:
Size:
15,000 employees, GBP500 million
Other setting(s):
1970s to 1991

About

Abstract

The case study reviews the changing corporate strategy of Tootal Group Plc, an international textiles group which had a broad base of interests including industrial domestic sewing thread, fabrics, garments and decorative homewares, from the 1970''s until 1991 when it was taken over by Coats Viyella Plc. Students are asked to analyse the dilemmas facing a company confronted with a declining domestic market, increased competition from low cost producers in developing countries and downward pressure on margins from an increasingly concentrated retail sector. Strategies to be considered include relocation of production, increased capital investment, use of subcontractors, diversification through acquisition and relations with a major retail chainstore customer with stringent quality standards and delivery schedules.

Settings

Location:
Size:
15,000 employees, GBP500 million
Other setting(s):
1970s to 1991

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