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IJOPM
28,6
Received 19 June 2007
Revised 3 February 2008
Accepted 19 February 2008
International Journal of Operations &
Production Management
Vol. 28 No. 6, 2008
pp. 562-583
q
Emerald Group Publishing Limited
DOI 10.1108/01443570810875368
A
systems
perspective
on
the
death
of
a
car
company
Nick Oliver
University of Edinburgh Business School, University of Edinburgh,
Edinburgh, UK
Matthias Holweg
Judge Business School, University of Cambridge, Cambridge, UK, and
Mike Carver
Oxford, UK
Abstract
Purpose
– The aim of this paper is to understand how large and apparently successful organizations
enter spirals of decline that are very difficult to reverse. The paper examines the case of Rover, once
one of the largest car producers in the world, which collapsed in 2005. An analysis of strategic and
operational choices made over a period of 40 years investigates the reasons for, and consequences of, a
growing mismatch between the context faced by the company (industry dynamics, market conditions)
and its operational capabilities, a mismatch that ultimately brought about the company’s demise.
Design/methodology/approach
– The paper is based on interviews with 32 people, including
senior managers (including four chief executives), government ministers and union officials who were
key decision makers wi ...