Tui Bus 499 Case Mod 1

Topics: Strategic planning, Recession, Revenue, Strategic management, Expectation, Business terms / Pages: 4 (800 words) / Published: Nov 27th, 2011
Module 1 Case

BUS 499

TUI University



Saatchi and Saatchi had been in business long enough to have a stronger foundation than many other struggling companies in the 1990s. However, this organization found themselves dangerously close to being another statistic of economic recession. They went from a billion dollar company to the brink of bankruptcy.

Adversity breeds creativity, and this pending financial crisis led to a series of events that eventually turned this company around. From the financial perspective, the new leadership established quantifiable and achievable goals for this company. The first of which was to increase revenue at a faster rate than the market increased. Next, was to turn 30% of their revenue into operational profit. Lastly, they committed to doubling their earnings per share. All of these goals were ambitiously to be accomplished within 3 years, all the while improving on their customer relationships in a way that influenced their bottom line.

The new leaders of the company recognized that there was a lack of a central goal within the many agencies that comprised this company. Additionally, there was seemingly no standardized method to achieving goals, and the varying mission of each agency did not completely reflect the organization as a whole.

In an attempt to overhaul this company within a short time frame, they grouped the subordinate agencies into 3 categories, so that a clear message and intent could be communicated across the company and in order to avoid confusion and increase employee buy-in of the company’s mission and vision. After determining where to make necessary cuts based on which agencies did or did not produce revenue, and to what extent, they formulated the categories as such:

1. “Lead,” which were the agencies that had the most potential for rapid growth, and therefore received the largest allocation of resources with the expectation of achieving


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