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Abridged version
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Reference no. UVA-BP-0388
Authors: LJ Bourgeois III
Published by: Darden Business Publishing
Originally published in: 1998
Version: 04.2001
Length: 20 pages
Data source: Generalised experience

Abstract

Condensed version of UVA-BP-0253 This case traces the history of a successful discount retailer, with a clearly developed low-cost strategy, from its founding to the present. The decision focus of the case is the president of the company and whether he should acquire a Florida-based chain of 206 stores with a very different product mix. The basic issue is not so much whether the price is a good one but whether the acquisition fits the company''s strategy and whether the president should put his personnel through another acquisition only months after completing a 200th store acquisition, and if he does, how it should be managed.

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Abstract

Condensed version of UVA-BP-0253 This case traces the history of a successful discount retailer, with a clearly developed low-cost strategy, from its founding to the present. The decision focus of the case is the president of the company and whether he should acquire a Florida-based chain of 206 stores with a very different product mix. The basic issue is not so much whether the price is a good one but whether the acquisition fits the company''s strategy and whether the president should put his personnel through another acquisition only months after completing a 200th store acquisition, and if he does, how it should be managed.

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