1. Strategic Analysis Case Study Burton Group 1976-90 Joseph TaylorRoxie Whittle Glafkos TofaridesDan Worrall Pooja VaswaneyKei Yoshimura MA in Management 2001-02 Presented By

2. Objective Background Sir Ralph Halpern Features of the Strategy Logic of the Strategy Acquisition of Debenhams Causes of Decline 1988-90 Conclusion

3. Background to Burton Expansion (-1990) Clothing Retailer; Traditional Family Business Founded anonymously as ‘Montague Burton’ in 1900 Known as ‘Arcadia Group Plc’ since 1998 Peter Robinson (46), Topshop (65), Evans (71), Top Man (78), Dorothy Perkins (79), Principles for Women (84) and for Men (85), and Debenhams (85)

4. Sir Ralph Halpern The Catalyst to Change ‘You have to understand, he has immeasurable ego and immeasurable confidence – perhaps they are the same thing. The guy just exudes confidence.’ (one of his team, early 80’s) 1939- ‘I developed a multi-brand strategy which had become the basis of multiple retailing in the UK’ (himself)

5. Features of the Strategy Company Portfolio Centralised Policy Making Re-structuring Continuous Updating of Image Expansion Change in Ethos

6. Div. Divisional Managing Directors Functional Managing Directors Re-structuring in Early 80’s i.e.shop operations, merchandising, concession, finance, personnel and systems Each division has functional senior executives reporting directly to functional managing directors No Filter; Open System

7. Features of the Strategy Company Portfolio Centralised Policy Making Re-structuring Continuous Updating of Image Expansion Change in Ethos

8. Logic of the Strategy Short-term Success Internal Finances Rapid Expansion

9. Acquisition of Debenhams AdvantagesDisadvantages Increase market presence Image enhancement Changing their successful formula Under one roof Comprise financial stability Overall, Externally;A Good Idea Internally;A Gamble

10. Causes of Decline (1988-90) Recession Loss of confidence by the City DTI Investigation resulted in a fall in consumer confidence Negative media attention Acquisition of Debenhams

11. Conclusion Over stretched and left themselves vulnerable ‘Quick Fix’ Narrow focus Short-term success Lack of clarity in the long-term

12. Questions or Comments?