It Seemed Like a Good Idea at That Time

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Executive Summary: This case is about the acquisition of Great Outdoors by Templeton Hardware. The management in Templeton Hardware changed the business strategy and the reward strategy that was initially enjoyed by the staff of Great Outdoors to match those which were in place in their company. This strategy however, did not work very well. Staff were demotivated and started to leave the organization. The sales suffered and customers were extremely dissatisfied with the service being offered. Introduction: This case refers is about Great Outdoors which was a family owned and controlled business of high quality caravans. The management of Great Outdoors had a defined marketing strategy which was in-line with the overall objective of the organization and they had a niche segment of the market which was targeted as their customers. With an effective performance management system and generous salaries, bonuses and rewards Great Outdoors was truly Employer of Choice. Due to the fragmentation of business the Great Outdoors was sold to Templeton Hardware. Templeton Hardware was the biggest hardware chain with an ambition to become the leaders of ‘all things outdoor’. They had a successful business strategy for hardware products but when the same was implemented for Great Outdoors, the results were far from desired. Business Strategy: As per the details provided in the case, we can determine that it was a conglomerate diversifications strategy which is predominantly a company’s decision to venture into a line of business. However, the decision to integrate the same business strategy used for Templeton Hardware into Great Outdoors was the first error made by the management. That clearly indicates that Templeton Hardware did not understand the distinction of business strategy for Great Outdoors. Though both the businesses were extremely successful in

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