Conclusions

Date: 2015-10-07; view: 604.

Analysis

Results

Background

Confidential report

Acquisition of Gordon brown Ltd.

Two years ago Gordon Brown Ltd was acquired for 2.5 million pounds. Gordon Brown Ltd had been a family company specializing in supplying office furniture in the North East of England. Manx Office Equipment saw this acquisition as an effective way to extend their customer base in this part of the country.

After two years, the Gordon Brown operation has still not made a profit (last year's figures reveal a 250,000 pounds loss). Despite considerable restructuring and a complete change of management, the company has seen a steady decline in the number of customers and volume of business.

We have identified the following:

1. Gordon Brown's reputation in the region was as a family company. The restructuring changed not only the senior management but also the ethos of the company. Customers no longer identified with the company.

2. Gordon Brown products were mainly traditional office furniture; Manx office equipment ispredominantly modern style. There has been no clear product strategy to promote these two different styles.

1. If our objective was to increase our customer base in the North East of England, we should have considered the needs and demands of Gordon Brown's customers.

2. If we want to turn the company round and start earning profits, we will have to pay more attention to customer needs in the future.