Greggs Plc

Topics: Greggs, John Gregg, Bakers Oven Pages: 9 (3685 words) Published: October 4, 2010
Greggs plc (Greggs) is a UK based bakery products retailing company. Through its subsidiaries, the company produces and retails takeaway foods that include savouries, sandwiches and fresh bakery food products. It also offers health range and regional products with lower fat, calorie and salt quantities. The bakery food products offered by the company comprise pasties and sausage rolls, pies, doughnuts and drinks. It also offers health range and regional products. Greggs operates 1,400 stores across the country and serves approximately six million customers each week. The company is headquartered in Jesmond, Newcastle upon Tyne in the UK Strategic Corporate Development History of Greggs Plc:

Greggs was a small, local business, never displaying any sign that it later would become the largest chain of its kind in the United Kingdom. The business was founded by John Gregg during the 1930s, when he opened a small bakery in the Tyne suburb of Newcastle, England. There the business stood, mostly unchanged for the next 30 years, as John Gregg served nearby residents his selection of breads, rolls, cakes, and related items. Greggs did not begin to assume the stature of an industry giant until John Gregg died unexpectedly in 1964. His son, Ian Gregg, who had planned a career in law, was forced to shelve his professional aspirations and take over the family business. Ironically, it was its founder's death that gave Greggs new life. Ian Gregg, who served as Greggs' chairman into the 21st century, took to his new career with relish. Instead of serving as a mere caretaker of the small bakery and its shop, Ian Gregg perceived the modest business as the beginning of a much larger corporation. He began expanding his father's company in the region surrounding Newcastle, establishing the company's model of expansion not long after his father's death. Although the property he inherited consisted of a shop with a bakery in the rear, Ian Gregg decided to separate the two functions, making production and retail sales geographically distinct operations. He established additional stores in clusters whose breads, rolls, and other items were supplied by a single, central bakery. The mode of expansion gave Greggs the divisional structure that later defined the company, with each wave of expansion adding another regional division to the company's operations. More important at the time of its creation, Ian Gregg's methodology also enabled the company to achieve production, managerial, and financial efficiencies, efficiencies that would increase as the size of Greggs increased. By the beginning of the 1970s, Ian Gregg was ready to expand Greggs beyond north eastern England. He expanded outside the northeast by acquiring established, regional bakery chains, first moving to the north before expanding to the south. Greggs established a presence in Glasgow, Scotland, in 1972 and acquired properties in Leeds in 1974 and in Manchester two years later. The addition of these territories gave Greggs four regional divisions, the structure of the company when it took its next evolutionary leap in 1984. In 1984, Greggs hired a new managing director, Mike Darrington, who presided over the company's day-to-day operation into the 21st century. He took the helm of a chain composed of 261 shops, the result of Ian Gregg's work during the previous two decades. With Darrington in charge, the company prepared for its next major surge in growth, an expansion to be funded by its debut on the London Stock Exchange. In 1984, the £37-million-in-sales Greggs completed its initial public offering (IPO) of stock, finding a wealth of investors willing to pay 135 pence per share for a stake in the company's future. With the proceeds raised from its IPO, Greggs pressed ahead with its expansion plans, growing by internal means and by acquiring other bakery outlets. The company established several new regional operations in the years immediately following its IPO,...
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