Pacific Brands
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AGSM MBA Programs Pacific Brands Case No: AGSM-13-002 Authors: J. Peter Murmann and Chris Styles This case has been compiled from public sources solely for educational purposes and aims to promote discussion of issues that surround the management of change in organisations rather than to illustrate either effective or ineffective handling of an administrative situation. Copyright: AGSM MBA Programs prohibits any form of reproduction, storage or transmittal without its written permission. This material is not covered under authorization from AGSM or any reproduction rights organization. To order copies or request permission to reproduce materials contact Academic Director, AGSM MBA Programs, Australian School of Business, UNSW, Sydney, Australia, 2052. Phone: (+612) 9931 9400 Facsimile: (+612) 9931 9206 Part 1: Introduction Let’s start with a recruitment video in which the CEO, Sue Morphet, describes Pacific Brands. It will give you insight into the company’s operations, culture and leadership. To see video, hold CTRL key and click on picture above or go to: http://bit.ly/p1qG7c 2 Strategic Management 4 1a. Exercise Question: What impression does this give you about the company? What do you think of Sue Morphet as a CEO? ............................................................................................................................................................................................... ............................................................................................................................................................................................... ............................................................................................................................................................................................... ............................................................................................................................................................................................... ............................................................................................................................................................................................... ............................................................................................................................................................................................... ............................................................................................................................................................................................... ............................................................................................................................................................................................... ............................................................................................................................................................................................... ............................................................................................................................................................................................... ............................................................................................................................................................................................... ............................................................................................................................................................................................... ............................................................................................................................................................................................... ............................................................................................................................................................................................... ............................................................................................................................................................................................... ............................................................................................................................................................................................... ............................................................................................................................................................................................... Now let’s see how the company projects itself to potential customers, in this case corporate customers. To see video, hold CTRL key and click on picture above or go to: http://bit.ly/nGdJ5X Pacific Brands Case– Reading 19 3 1b. Exercise Question: What are the core attributes and values Pacific Brands is communicating to its customers? How compelling is the value proposition it presents? ............................................................................................................................................................................................... ............................................................................................................................................................................................... ............................................................................................................................................................................................... ............................................................................................................................................................................................... ............................................................................................................................................................................................... ............................................................................................................................................................................................... ............................................................................................................................................................................................... ............................................................................................................................................................................................... ............................................................................................................................................................................................... ............................................................................................................................................................................................... ............................................................................................................................................................................................... ............................................................................................................................................................................................... ............................................................................................................................................................................................... ............................................................................................................................................................................................... ............................................................................................................................................................................................... ............................................................................................................................................................................................... ............................................................................................................................................................................................... Part 2: The Company’s Strategy and Performance in 2004 We will now go back in time to see how Pacific Brands got to where it is today. The focus is on strategy, performance and the decisions management made. Let’s start with the company strategy articulated in 2004 in the IPO prospectus and the expected future performance. Read Please read the following excerpt, The Pacific Brands business, from Pacific Brands Prospectus, 2004, pp. 48–62. Source: http://bit.ly/pBXzVd 4 Strategic Management 4 Pacific Brands Prospectus The Pacific Brands business 4.1 Overview Pacific Brands is a leading manager of consumer brands in Australia and New Zealand, marketing some of the most recognised brands including Berlei, Bonds, Clarks (childrens), Dunlop, Everlast, Grosby, Holeproof, Hush Puppies, KingGee, Slazenger, Sleepmaker and Tontine. Pacific Brands’ commitment to market leadership has provided it with number one or two positions across its major product categories in Australia and New Zealand. These category leading positions have been achieved through a focus on being at the forefront of brand development (including acquisitions), product innovation, marketing and an efficient and effective supply and distribution network. Pacific Brands believes that it is one of Australia and New Zealand’s most informed companies on the “what, where, when and why” of a consumer’s branded everyday essentials. In November 2001, the Pacific Brands