Greyhound Dial Case
What environmental factors affected Greyhound’s businesses?
Macroenvironment affects the intensity of rivalry within an industry.
? Demographic
? Technological
o High production costs, inefficient plants
o Products they would acquire are easy and inexpensive to imitate by much larger companies
? Cultural
o Trautmans style vs Teets (new)
? Trautmans: ambitious about expansion and diversification
? Teets: cost cutter, effective hands on manager, liked to stay close to action, domination with labor unions, overall more laid back
? Jozoff: P&G veteran, understand how to fashion a business model to promote profitability- saw lack of a differentiated appeal- entered into some joint deals- bring into direct competition
? Baum: experience with similar type products (bread&butter)- recognized importance of finding the right strategy- made the products speak and fight for themselves number wise
? Economic
o Hoped vast array of business would be recession proof
o There was a recession in the real estate market in 1987 right when Greyhound announced its intention to sell Verex (financial)- bad timing
o 1995- wanted to increase company’s ROE and stock price, so began to slash costs- reduce advertising budget
o Trying to create value
? Government or Legal
o There was a newly deregulated bus transportation market (1981 bill that deregulated the intercity bus business)- had to be able to ch ...