Case Studies

HideShow resource information
  • Created by: georgia
  • Created on: 28-05-13 10:08

Poundland (US business) - economy & globalisation & management vision


  • in 2007, the financial crisis began
  • economy slipped into recession in late 2008 following the collapse of the Lehman Brothers; which provided Poundland with several opportunities
  • there was a high demand for cheap products (unemployment, lower confidence, sustained inflation)
  • cheaper to expand; high street vacancy rates rose to 15%, cheaper to buy new shops
  • cheaper stock; liquidation at othe rhigh street stores ment cheap available stock
  • company increasse no. of stores from 150-400 between 2007 - 2012


  • downturn in the economy increased demand for Poundland products
  • however company had to maintain a single pricing point of £1 to sustain this demand
  • extreme focus on COST MINIMISATION:
  • 30-40% of products sourced from Far East, where goods are cheaper
  • increasing buyer power as sales have doubled allows 5-10% bulk buying discounts
  • reducing the size of products to combat inflation- e.g. 800g Muesli vs 1kg standard
  • as a result sales revenue went up from £300mil 2007 to £800mil in 2012
  • gross profit margin maintained at 35% despite prices being held at £1
  • net profit margin maintained at 4-5%
  • ROCE at 30%
  • gearing kept low at 10% as all new expansion was funded through retained profits
  • as there is a fixed price, there is a high percentage of impulse purchases; in 2009, reported that 40% of purchases were impulse buys
  • the more uppermarket shopper became attracted to Poundland during the recession; new markets


  • used the recession as an opportunity
  • required management commitment and vision

Korean Air- cultural values & organisational failure


  • had more plane crashes than almost any other ailine in the world for a period at the end of 1990's
  • what they were struggling with was a cultural legacy, that Korean culture is hierachical
  • you are obliged to be deferntial towards your elders and superiors 
  • factors influencing the culture:
  • hierachy, age, social position within society, history, autonomy (single leader), respect
  • impact on organisational culture:
  • breakdown of communication, crash record very bad, poor reputation
  • reasons for change:
  • out of business, crashes
  • ways of change:
  • outside help and consultants, new training programmes

HBOS- economy & leadership & culture


  • in 2001, Halifax and Bank of Scotlant entered into a 'merger of equals' and became the 5th largest bank in UK
  • Bank of Scotland = rapid growth corporate leader
  • Halifax = fairly sleepy mortgage lenderr
  • as part of a business with huge distribution, was able to expnd rapidly


  • culture in the division was flawed- huge derision towards risk
  • those that spoke out against risks were irgnored or fired
  • Paul Moore, previously head of risk was sacked in 2005, he described it as a 'them and us' culture and a 'threatening culture'
  • with a 'dysfunctional' reporting structure where risk function reported to the division rather than the non-executives on…



An analysis of 7 diverse and well known companies in which the main strategy is encapsulated in bullet points. Students needing knowledge of a range of businesses eg for AQA unit 4 will find this useful.

Adam "Inbred" Smith

David Salter? Is that because you're salty that I'm gonna f*** yo b****?


would help if this was in Brail because I can't read at all


what exam paper was this case study from ? 

Similar Business Studies resources:

See all Business Studies resources »See all Business case studies resources »