Creating a global business
A Bass Group case study

Page 1: Introduction

A key issue facing any large business today is that of rightsizing i.e. developing a business that is just the right size - for the markets it operates in and for the effective running of the organisation. During the 1980s, it was common practice in the UK for many organisations to grow by merging with others. A merger is a situation in which two or more enterprises ‘cease to be...
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Page 2: The importance of being a global player

Nowadays, it is important for most large companies selling branded consumer goods and services to think globally and not simply set out to dominate their domestic (national) market. Today’s modern consumers are sophisticated and cosmopolitan in their tastes - loyalty will be given to whichever producer supplies the best quality products and value for money. Transnational companies treat...
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Page 3: Strategy

There are four major reasons why mergers take place: Diversification - to spread the interests of a company – moving into similar and related fields of business. The addition of new and profitable products to existing ones. The acquisition of management or technical personnel to increase the operating performance of existing businesses. The acquisition of businesses which can be made more...
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Page 4: Brand management

A key element of business strategy is to define clearly what the main product lines are and then to focus resources on these lines. Such clarity is important for the external audience (i.e. customers) and the internal audience (i.e. those responsible for making key decisions within the organisation.)Branding is an important part of this defining process. Brands should exemplify what the company...
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Page 5: Global presence

A third key synergistic benefit of the Holiday Inn acquisition relates to developing a global presence in hospitality management. Hospitality is central to Bass products and Bass employees. Prior to the Holiday Inn acquisition, Bass was an entirely UK based company. As an extension of the hospitality function, however, Holiday Inn has now given Bass a significant global presence. Implications...
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Page 6: Conclusion

This case study has examined Bass Group’s acquisition of Holiday Inn Worldwide and how the Group has brought focused strategic thinking to Holiday Inn hotels. The acquisition has enabled Bass to become a strong global player in an increasingly competitive international market place.
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