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PC&D_Inc - Case Study Example

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Summary
In order to achieve its expansion, the company successfully ventured into mergers and acquisitions that led to benefits of economies of scale and contributed to the company’s high reported revenues in the 1960s. The…
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PC&D Inc The PC&D Company can be analyzed through its strategy, its value creation, and its resources. Strategies One of the company’s strategies isgrowth and expansion. In order to achieve its expansion, the company successfully ventured into mergers and acquisitions that led to benefits of economies of scale and contributed to the company’s high reported revenues in the 1960s. The company also adopted product differentiation, quality, and marketing as strategies towards competitive advantage. It produced a variety of commodities by using differentiated configurations. Detailed records of customers were also kept, a move that indicates marketing initiatives. The company also relied on quality as a strategy to market control. Similarly, innovation formed part of the organization’s approaches to its successful ventures (Docenti, 1986: 1-7; Hill and Jones, 2012: 167, 168).
Value creation
Though the company later faced challenges into productivity, it previously had successful initiatives towards value creation. PC&D achieved value creation through innovation into quality products that were highly regarded by consumers. This for instance established the company as a national market leader. Similarly, marketing initiatives that were achieved through a strong marketing team and a determined sales team ‘added value’ to the company’s ability to generate revenues (Docenti, 1986: 1-9; Hill and Jones, 2012: 167, 168).
Resources
The company’s major resource was its employees and management. While it shared same raw materials with its competitors, it was able to organize its management and employees towards successful competitive advantage. The essence of the company’s employees was demonstrated when it lost its sales team leading to declined revenues (Docenti, 1986: 1-9; Hill and Jones, 2012: 167, 168).
Conclusion
The success that was realized by the company before its fall was therefore because of its expansion and competitive advantage strategies, its successful value creation and its resource in dedicated human resource.
Bibliography
Docenti. (1986). “PC&D, Inc.” Harvard Business School. Available from: http://docenti.luiss.it/priem/files/2012/03/PCD_Inc.-11.pdf. [Accessed on 21 May 2012]
Hill, C. and Jones, G. (2012). 10th Ed. Strategic Management Theory: An Integrated Approach. Mason, OH: Cengage Learning Read More
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