Subject category:
Strategy and General Management
Published in:
1986
Length: 22 pages
Data source: Field research
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Abstract
Under the entrepreneurial leadership of its Managing Director, the UK subsidiary of a major foreign based international firm has, during its short history, moved away from the original product lines it was set up to market. It now markets three imported lines - mopeds, bicycles (including BMX) and fitness equipment, the last of which was established as a counter-seasonal product. Evaluation of these shows that fitness is the most profitable and the company, the market leader, but development of sales has been held back by the parent company''s wish to give priority to its own manufactured products. Other strains have also developed in the relationship, and the subsidiary company (and its leading personnel on the fitness equipment side) have to face the question, "Where does their future best lie?" Students need to make a careful examination of the prospects for each product line, assess the viability of going it alone and the consequences for the overall product portfolio, and what other financial and marketing arrangements can be set up. In addition, the case can be used to identify the management actions necessary to manage the transitional problems in what would be analogous to a startup situation and to set out the development of a marketing strategy over the next 2 - 3 years.
Location:
Industry:
Size:
43 employees
Other setting(s):
1984
About
Abstract
Under the entrepreneurial leadership of its Managing Director, the UK subsidiary of a major foreign based international firm has, during its short history, moved away from the original product lines it was set up to market. It now markets three imported lines - mopeds, bicycles (including BMX) and fitness equipment, the last of which was established as a counter-seasonal product. Evaluation of these shows that fitness is the most profitable and the company, the market leader, but development of sales has been held back by the parent company''s wish to give priority to its own manufactured products. Other strains have also developed in the relationship, and the subsidiary company (and its leading personnel on the fitness equipment side) have to face the question, "Where does their future best lie?" Students need to make a careful examination of the prospects for each product line, assess the viability of going it alone and the consequences for the overall product portfolio, and what other financial and marketing arrangements can be set up. In addition, the case can be used to identify the management actions necessary to manage the transitional problems in what would be analogous to a startup situation and to set out the development of a marketing strategy over the next 2 - 3 years.
Settings
Location:
Industry:
Size:
43 employees
Other setting(s):
1984