GRAND METROPOLITAN

Case Analysis: Corporate Strategy at Grand Metropolitan



Introduction3

Grand Metropolitan: A Brief Company Overview3

Strategic Problem4

SWOT Analysis - Grand Metropolitan5

Strengths of Grand Metropolitan5

Weaknesses of Grand Metropolitan5

Opportunities of Grand Metropolitan6

Threats of Grand Metropolitan6

PESTEL Analysis - Grand Metropolitan7

Political Factors7

Economical Factors8

Social Factors8

Technological Factors8

Environmental Factors9

Legal Factors9

Strategic Choices Available to Grand Metropolitan9

Horizontal Integration10

Conclusion11

References12

Case Analysis: Corporate Strategy at Grand Metropolitan

Introduction

In large organizations, horizontal integration strategy is broody used, particularly by MNCs (multinational corporations). The key strategy utilized by Grand Metropolitan is horizontal integration during the process of development. During operation and acquisitions, there are number of strengths and weaknesses faced by Grand Metropolitan, this report will use SWOT and PESTEL analyses to examine the strategic choices the company have, as well as provide recommendations to highlight opportunities for further improvement.

Grand Metropolitan: A Brief Company Overview

Basically, Grand Metropolitan is a Property Corporation headquartered in England. Initially, the organization was listed on the (LSE) i.e. London Stock Exchange, but afterwards, because of its high potential and economic power, it regards under the FTSE-100. It began its business procedures as a hotel business in 1934 with the name of MRMA Ltd. i.e. (Mount Royal Metropolitan Association). A business renowned as Grand Hotels (Mayfair) was founded by Maxwell Joseph later than World War II, and then merged with MRMA in the year 1957. This merger expanded the business rapidly under the leadership of Joseph. In 1961, it was listed on the LSE and then in the year 1962, its name was changed to Grand Metropolitan Hotels Ltd (Jennex, 2005, pp.6-110).

In 1967, the business diversified into catering business with the acquisition of Bateman Catering, and then in 1968, with Midland Catering. Afterwards in 1969, it purchased Express Diaries and in 1970, made purchasing of Mecca and Inns. Subsequent to it, the company purchased Watney Mann and Trueman, Hanbury & Buxton in 1972 inclusive of the International Distillers & Vintners of the latter subsidiary which owned the Bailey's Irish Cream, J&B whisky, Piat wine, Gilbey's gin, port brands and Croft Sherry, and also the European and Commonwealth rights to Smirnoff vodka. Then, in 1973, it finally changed its name to Grand Metropolitan (Jennex, 2005, pp.6-110).

Strategic Problem

Strategies are the central part of organizations and without effective utilization of the strategies in organizations, there cannot be any sort of acceleration in its total income (Cole, 2003, pp.62-240). Business organizations are meant to increase the equities as well as net income related to shareholders and for achieving these purposes, organizations take into consideration some of the certain strategies (Theaker, 2004, pp.21-125). Organizations encounter with various issues and problems throughout their corporate movements and for being competitive, it is necessary for the organizations to be well-equipped in a way that their business strategies could be utilized and implemented in the greatest possible manner. There are distinctive analytical methods and procedures which may be considered by the organizations for increasing the equities of their shareholders (Cole, 2003, pp.16-240). Amongst various types of analysis for analyzing the loopholes in an organization, strategic analysis is the well-recognized ...