Subject category:
Economics, Politics and Business Environment
Published by:
INSEAD
Length: 15 minutes
Topics:
Advertising; Consulting
Notes: File size 1.25GB. Click for more information.
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Abstract
This supporting video is to accompany the case. Playing time is 15 minutes. The case focuses on the strategic and organisational challenges of managing a multibusiness and multinational service company: Saatchi and Saatchi. An incredible success story in the early '80's, Saatchi and Saatchi grew within 15 years from a small local advertising agency in the UK to one of the largest global service conglomerates, active in a range of businesses such as advertising, public relations and management consulting. The case describes the growth and highlights the process by which it was achieved. By 1988, however, the company is in the midst of some serious difficulties. Its stock price has plummeted, along with profits and its survival is in question. While its growth was built on the three pillars of globalization, diversification and decentralization, the soundness of each of these strategic principles is now in question. Is advertising a global industry? Which aspects of the business are global and which are local? How can a company leverage the benefits of geographic scope, if indeed any such benefits exist in the business? What, if any, are the synergies between advertising and consulting? What is the appropriate management system to exploit these synergies? These are some of the questions the case raises and provides some data to discuss.
About
Abstract
This supporting video is to accompany the case. Playing time is 15 minutes. The case focuses on the strategic and organisational challenges of managing a multibusiness and multinational service company: Saatchi and Saatchi. An incredible success story in the early '80's, Saatchi and Saatchi grew within 15 years from a small local advertising agency in the UK to one of the largest global service conglomerates, active in a range of businesses such as advertising, public relations and management consulting. The case describes the growth and highlights the process by which it was achieved. By 1988, however, the company is in the midst of some serious difficulties. Its stock price has plummeted, along with profits and its survival is in question. While its growth was built on the three pillars of globalization, diversification and decentralization, the soundness of each of these strategic principles is now in question. Is advertising a global industry? Which aspects of the business are global and which are local? How can a company leverage the benefits of geographic scope, if indeed any such benefits exist in the business? What, if any, are the synergies between advertising and consulting? What is the appropriate management system to exploit these synergies? These are some of the questions the case raises and provides some data to discuss.