Organisational change
A Dixons Group case study

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Page 2: Strategic decisions

Dixons Group 4 Image 2When Sir Stanley Kalms, the current chairman of Dixons, joined the business in 1948, it had a turnover of £105 per week. The Dixons Group today is one of the largest publicly quoted retail groups in the UK, with a turnover approaching £3 billion.

The Dixons Group comprises:

  • Dixons, the UK’s leading high street retailer of consumer electronics, selling the latest video, audio, personal computer, photographic and communication technology.
  • Currys, the UK’s leading electrical retailer, providing a comprehensive selection of domestic appliances, video, audio and communications products and personal computers.
  • PC World, the UK’s largest specialist computer superstore retailer, featuring comprehensive ranges of personal computers, printers, software, peripherals and accessories.
  • The Link, a high street retailer specialising in communications services and products.
  • Mastercare, the UK’s leading after sales service organisation for consumer electronics and business products, supporting customers of Dixons, Currys, PC World and The Link.

Strategic alternatives

Dixons Group 4 Diagram 3In order to pursue its corporate aim, Dixons was faced with two simple alternatives. It could go alone and expand internally, which would mean relying upon expansion within the company or it could opt for external expansion which would mean acquiring other parts or businesses which would add to the overall effectiveness of Dixons as a business. Dixons opted for a strategy including elements of both. Its internal strategy involved further development of Dixons stores and the creation and development of The Link. Dixons’ external acquisitive strategy led to Currys, Mastercare and PC World becoming part of the Group, where they could also be further developed.

Dixons Group | Organisational change