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Outline the Main Features of the Strategy Implemented by the Burton Group From 1981 to 1985. Control orientation Selective market segment targeting Prudent rationalisation Accountability to drive performance Target driven reward system Controlled business autonomy and risk
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Outline the Main Features of the Strategy Implemented by the Burton Group From 1981 to 1985 • Control orientation • Selective market segment targeting • Prudent rationalisation • Accountability to drive performance • Target driven reward system • Controlled business autonomy and risk • Enfranchise the shareholders
Assess the Underlying Logic of This Strategy • Why specific market targeting? • Why the high levels of expenditure • Why rationalise? • Why high levels of accountability? • Why the target based reward structure? • Why the centralised leadership and executive decision making? • Why the emphasis on risk and controlled business autonomy?
In the Light of Ralph Halpern’s Team up to 1985, Did the Acquisition of Debenham’s Make Sense? • Property diversification – based on a trend? • Centralised structure sacrificed • Previously a highly focused business – did it diversify to much? • Power divested to a holding group- should they have given up power?
What Were the Causes of the Decline of the Burton Group From 1988 to 1990? • Property diversification which ended in a down turn in the property market • Lack of clarity in accounting • Lack of transparency in the acquisition • Lack of credibility • Recession • Too much expansion and thus too much debt