Strategic Analysis Case Study Burton Group 1976-90

1. MA in Management 2001-02 Strategic Analysis Case Study Burton Group 1976-90 Presented By Joseph Taylor Roxie Whittle Glafkos Tofarides Dan WorrallPooja Vaswaney Kei Yoshimura

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 • Clothing Retailer; Traditional Family Business • Expansion (-1990) • 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 1939- • 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) ‘I developed a multi-brand strategy which had become the basis of multiple retailing in the UK’ (himself)

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

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

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

8. Overall, Externally; A Good Idea Acquisition of Debenhams Internally; A Gamble

9. 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

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

11. Questions or Comments?