Teaching Note - Saatchi & Saatchi

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TEACHING NOTE 19: SAATCHI & SAATCHI WORLDWIDE Case and Teaching Note by Ron Meyer Case Synopsis In 1986 Saatchi & Saatchi became the largest advertising agency group in the world. The corporation also owned a sprawling portfolio of communication services companies and consulting firms. Its share prices had skyrocketed from £25 in 1980 to more than £500 by 1987. Boldly Charles and Maurice Saatchi attempted to acquire two British banks, but at this point the company started to unravel. Within three years the company was at the brink of insolvency and Saatchi & Saatchi's entire strategy was being reevaluated. This case ends in 1991 with two key strategic questions that need to be answered. First, does Saatchi's ‘one-stop communications shopping’ concept make sense, or is there little added value to having a wide range of communication services within one corporation? Second, does Saatchi's ‘global marketing’ concept make sense, or are there too few customers that are really in need of global campaigns? Teaching Objectives When used in conjunction with chapter 10, the Saatchi & Saatchi Worldwide case can be employed to eet the following teaching objectives: m .. Identifying the pressures for global standardization, coordination and integration. The case describes that the Saatchi brothers believe that their clients will increasingly demand cross-border standardization and/or coordination. In other words, as Saatchi's clients globalize, so must Saatchi - however, the question is whether there will be many companies that will feel the pressures for global standardization and/or coordination. The case therefore allows for a discussion on globalization pressures felt by both Saatchi and its clients (link to all readings). .. Identifying the pressures for local responsiveness. Likewise the case can be used for a discussion on the pressures for local responsiveness

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