C – Chairmen, M – Michel, P – Paula, T – Tom, S – Susan

Date: 2015-10-07; view: 653.

Unit 5 Decision-making

I – Interviewer, H W – Hugh Whitman

Case study Acquiring Metrot

I – Imagine you'll be making some changes, Mr Whitman, now that you're in charge

at Metrot.

H W – Yes, there will certainly be some changes, there always are when you acquire

another company. Metrot is a fine company, that's why we bought it. It has a

skilled work force and excellent products. We think we can help Metrot to

become more dynamic and efficient. We want it to compete successfully in

European markets where there are big opportunities for us.

I – You say, more efficient. Does that mean reorganization? Job losses? I believe that

the staff at Metrot are worried about this.

H W – It's early to say. But there could be some staff cutbacks in the sort term. We

shall see. Our plan is to expand the company and create as many job

opportunities as possible.

I – What about the factories? Some people say you're thinking of relocating some of

the factories and selling off some of the land you've acquired.

H W – I don't want to comment on that. Our aim is to build Metrot and make it a

strong company at the leading edge of technology, with an image for quality,

reliability and good service.

I – I see. Thank you Mr Whitman. I wish you the best of luck in your new position.

C – OK, the main item on the agenda is whether we should sell our store in Paris. I'd

like to hear your opinions about this. But first of all, can you give us the

background, Michel?

M – Yes. As you all know, we opened the store in Boulevard Jordan five years ago.

We hoped it would be a base for expansion into other areas of France. But it

hasn't been a success. It hasn't attracted enough customers and it's made losses

every year. As I see it, it's going to be very difficult to get a return on our

investment.

P – I agree. There is no possibility it'll make a profit. It's in the wrong location, there's

too much competition, and our products don't seem to appeal to French people.

We should never have entered the market – it was a mistake. We should sell out as

soon as possible.

T – I don't agree with that at all. Things have gone wrong there, it's obvious. The

management has let us down badly – they haven't adapted enough to market

conditions. But it's far too early to close the business down. I suggest we bring in

some marketing consultants – a French firm, if possible, and get them to review

the business. We need more information about where we are going wrong.

S – I totally agree with you. It's so early to close down the store, but I'm worried about

the store's location. We're an up-market business, but most of the stores in the

area have moved down-market, selling in the lower price ranges. That's a

problem. I think we have to make changes – very soon. I mean, our losses are

increasing every year, we just can't go on like this. We may have to revise our

strategy. Maybe we made a mistake in choosing France for expansion.

C – Well, thanks for your opinion. I think on balance we feel we should keep the store

going for a while. So, the next thing to do is to appoint a suitable firm of

marketing consultants to find out what our problems are, and make

recommendations. Personally, I'm convinced the store will be a success if we get

the marketing mix right. We've got to get the store back into profit, we've

invested a lot of money in it.