This scenario summarises the development of a company called Rock Bottom through three phases, from its founding in 1965 to 2008 when it ceased trading.
Phase 1 (1965–1988)
In 1965 customers usually purchased branded electrical goods, largely produced by well-established domestic companies, from general stores that stocked a wide range of household products. However, in that year, a recent university graduate, Rick Hein, established his first shop specialising solely in the sale of electrical goods. In contrast to the general stores, Rick Hein’s shop predominantly sold imported Japanese products which were smaller, more reliable and more sophisticated than the products of domestic competitors. Rick Hein quickly established a chain of shops, staffed by young people who understood the capabilities of the products they were selling. He backed this up with national advertising in the press, an innovation at the time for such a specialist shop. He branded his shops as ‘Rock Bottom’, a name which specifically referred to his cheap prices, but also alluded to the growing importance of
rock music and its influence on product sales. In 1969, 80% of sales were of music centres, turntables, amplifiers and speakers, bought by the newly affluent young. Rock Bottom began increasingly to specialise in selling audio equipment.
Hein also developed a high public profile. He dressed unconventionally and performed a number of outrageous stunts that publicised his company. He also encouraged the managers of his stores to be equally outrageous. He rewarded their individuality with high salaries, generous bonus schemes and autonomy. Many of the shops were extremely successful, making their managers (and some of their staff) relatively wealthy people.
However, by 1980 the profitability of the Rock Bottom shops began to decline significantly. Direct competitors using a similar approach had emerged, including specialist sections in the large general stores that had initially failed to react to the challenge of Rock Bottom. The buying public now expected its electrical products to be cheap and reliable.
Hein himself became less flamboyant and toned down his appearance and actions to satisfy the banks who were becoming an increasingly important source of the finance required to expand and support his chain of shops.
Phase 2 (1989–2002)
In 1988 Hein considered changing the Rock Bottom shops into a franchise, inviting managers to buy their own shops (which at this time were still profitable) and pursuing expansion though opening new shops with franchisees from outside the company. However, instead, he floated the company on the country’s stock exchange. He used some of the capital raised to expand the business. However, he also sold shares to help him throw the ‘party of a lifetime’ and to purchase expensive goods and gifts for his family. Hein became Chairman and Chief Executive Officer (CEO) of the newly quoted company, but over the next thirteen years his relationship with his board and shareholders became increasingly difficult. Gradually new financial controls and reporting systems were put in place. Most of the established managers left as controls became more centralised and formal. The company’s performance was solid but unspectacular. Hein complained that ‘business was not fun any more’. The company was legally required to publish directors’ salaries in its annual report and the generous salary package enjoyed by the Chairman and CEO increasingly became an issue and it dominated the 2002 Annual General Meeting (AGM). Hein was embarrassed by its publication and the discussion it led to in the national media. He felt that it was an infringement of his privacy and
civil liberties.
Phase 3 (2003–2008)
In 2003 Hein found the substantial private equity investment necessary to take Rock Bottom private again. He also used all of his personal fortune to help re-acquire the company from the shareholders. He celebrated ‘freeing Rock Bottom from its shackles’ by throwing a large celebration party. Celebrities were flown in from all over the world to attend. However, most of the new generation of store managers found Hein’s style. to be too loose and unfocused. He became rude and angry about their lack of entrepreneurial spirit. Furthermore, changes in products and how they were purchased meant that fewer people bought conventional audio products from specialist shops. The reliability of these products now meant that they were replaced relatively infrequently. Hein, belatedly, started to consider selling via an Internet site. Turnover and profitability plummeted. In 2007 Hein again considered franchising the company,but he realised that this was unlikely to be successful. In early 2008 the company ceased trading and Hein himself,now increasingly vilified and attacked by the press, filed for personal bankruptcy.
Required:
(a) Analyse the reasons for Rock Bottom’s success or failure in each of the three phases identified in the
scenario. Evaluate how Rick Hein’s leadership style. contributed to the success or failure of each phase.
(18 marks)
(b) Rick Hein considered franchising the Rock Bottom brand at two points in its history – 1988 and 2007.
Explain the key factors that would have made franchising Rock Bottom feasible in 1988, but would have
made it ‘unlikely to be successful’ in 2007. (7 marks)
第1题:
第2题:
新中国成立后,国防与军队建设大体上经历了三个阶段,第二阶段为曲折前进时期,其时间是()。
第3题:
1965年欧洲联盟杯冠军是:()
第4题:
大港油田始建于()。
第5题:
我国统一采用()国家高程基准。
第6题:
Which three of these statements about penultimate hop popping are true?()
第7题:
1角纸币版式有()。
第8题:
第9题:
evaporation
distillation
dehydration
condensation
第10题:
1956
1965
1985
1988
第11题:
1876
1878
1946
1965
第12题:
理论前期(1900~1955年)
理论初期(1955~1965年)
理论中期(1965~1975)
推行老人医疗保险福利制度后期(1965~1981年)
1985年至今是完善和发展时期
第13题:
一期工程()动工。
第14题:
中国人民解放军于()年第一次实行军衔制度。
第15题:
老年护理学发展经历了哪些阶段()
第16题:
政府是何时提出“价格闯关”,结束“价格双轨制”()
第17题:
Company could reject the products back from its customers.
第18题:
In which of these phases is a customers network assessed to determine its system readiness? Select exactly 1 answer(s) from the following:()。
第19题:
根据涂子沛先生所讲,摩尔定律是在哪一年提出的()
第20题:
It is used only for directly connected subnets or aggregate routes.
It can only be used with LDP.
It is only used when two or more labels are stacked.
It enables the Edge LSR to request a label pop operation from its upstream neighbors.
It is requested through TDP using a special label value that is also called the implicit-null value.
It is requested through LDP using a special label value that is also called the implicit-null value.
第21题:
1965年7月24日
1965年8月23日
1965年9月1日
1965年9月9日
第22题:
对
错
第23题:
1965~1988
1895~1950
1967~1976
1900~1970