Greyhound Dial

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Greyhound Dial Case

What environmental factors affected Greyhound’s businesses? Macroenvironment affects the intensity of rivalry within an industry. Demographic
Technological
oHigh production costs, inefficient plants
oProducts they would acquire are easy and inexpensive to imitate by much larger companies Cultural
oTrautmans 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

oHoped vast array of business would be recession proof
oThere was a recession in the real estate market in 1987 right when Greyhound announced its intention to sell Verex (financial)- bad timing o1995- wanted to increase company’s ROE and stock price, so began to slash costs- reduce advertising budget oTrying to create value

Government or Legal
oThere was a newly deregulated bus transportation market (1981 bill that deregulated the intercity bus business)- had to be able to charge competitive fares- could not be a low cost provider of bus transportation- lost competitive edge

Could anything have been done to control environmental factors? In the case of leadership of the company- needed to be more accountable for each product line and business etc- grouping things together too much leads to troublesome oversight More research before announcing big decisions

In what ways did environmental factors distort the picture of Greyhound’s performance? Way case was written- seemed like something was always going wrong- never...
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