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Scottish Courage Limited A John Dunsmores First Week Case Solution

Solution Id Length Case Author Case Publisher
2238 537 Words (3 Pages) Peter Killing Institute for Management Development : IMD-3-1643
This solution includes: A Word File A Word File

The external problems faced by John Dunsmore are numerous with the major one being changing market conditions as with the aging population, the demand for beer declined, which in turn adversely influenced the financial profitability of the business. Apart from this, there has been a rise in the extent of health consciousness among people and people shifted towards consuming wine over beer shrinking the market even further.

Following questions are answered in this case study solution:

  1. What are the major issues facing John Dunsmore as he moves into his new job? External issues? Internal issues?

  2. Does it make sense for John to hold a 3-day offsite during his first week? Pros and cons.

Case Study Questions Answers

Also, it is difficult to succeed in the industry without consolidation. However, because of restrictions by regulatory authorities, it would get challenging to steer the business in a profitable direction.

As far as the internal problems are concerned, the business was suffered from financial losses due to deteriorating market demand conditions. Apart from this, the cost of the business was also rising at a steady with labor cost being exceptionally high from that of the competitors. These were mainly because of the labor being highly unionized making it difficult to reduce the labor costs which in turn negatively influenced the overall profitability of SCL. Furthermore, the company was not spending sufficiently on marketing as compared to its competitors. This is considered necessary for the business to be able to effectively penetrate the market. The internal corporate culture of the company is quite an old school with resistance to change. Hence, there would be a need to change the mindset of the employees without negatively influencing their productivity.

2. Does it make sense for John to hold a 3-day offsite during his first week? Pros and cons.

It does make sense for John to hold a 3 day offsite during his first week as this way, he would be able to have a better grasp of the supply chain and the general operations of SCL.

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