Briggs & Stratton Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

INTRODUCTION:

Briggs and Stratton was founded in 1909 by Stephen F Briggs and Harold M Stratton. The company was founded as a partnership business, which has expanded its operation over the period of time. In addition to this, the top management of the company has made its back breaking efforts in order to enhance the overall growth of the company.

The company has specialized in manufacturing and selling a diversified variety of lawn mowers.In addition to this, the company has earned the confidence and satisfaction of the customers of the company by facilitating its customers with excellent quality products as well as exceptional customer care services.

Moreover, the top management of the company has made various strategies in order to enhance and expand the overall growth of the company. The management of the company has expanded the operations of the company in various potential markets all across the world, efficiently and effectively. Thus, this has increased the overall customer base of the company and allowed the company to trail blaze the entire industry by securing a leading position in the entire market.

The top management of the company focuses on identifying the needs of the customers of the company and diversifying its products accordingly. In addition to this, the company also focuses on the quality of the products offered by the company in order to earn the loyalty of its customers as well as in order to compete strongly in the entire market.

Since the top management of the company has made its back breaking efforts in order to run the day to day operations of the company in a highly effective manner, it has allowed the company to capture an entire market share of 65% to 80%. In addition to this, the company has significantly focused on entering the Japanese industry as it offers high potential to the company to expand its overall operations efficiently and effectively as well as in order to fuel the growth of the company at a wide spread scale.

The performance of the company between 1950’s till 1970’s depicts a drastic growth of the company as the company had grown its sales to $591 million as well as it has also grown its number of employees to approximately 10605. Thus, this also depicts the back breaking efforts of the top management of the company in enhancing the overall growth of the company.

In addition to this, the reason for such drastic growth between 1950’s to 1970’s is that the company intimated the marketing strategy of General Motors, and according to such strategy the company made a wide spread range of products for all customer segments.

Thus, this also increased the overall customer base of the company and allowed the company to compete strongly in the entire market as well as to fuel up the overall growth of the company efficiently and effectively.

ISSUE ANALYSIS:

In spite of such extra ordinary performance of the company, the management of the company announced a loss of approximately $20.2 million in the financial year 1989. In addition to this, most of the gigantic companies including Honda, Kohler, etc. have entered into the industry of lawn mowers, as well as most of the Japanese countries have also entered into the industry of lawn mowers.

This made the top management of the company concerned about the going concern issue of the company.

Moreover, the top management of the company is also unable to control the overall costs of the company due to which the overall costs of the company are 30% higher than the average costs of the company in the similar industries. In addition to this, the management of the company is also unable to determine the various effective strategies in order to control the overall costs of the company as well as in order to enhance the overall competitiveness of the company.

Furthermore, due to such loss in the financial year 1989, the stock price of the company has been decreased. In addition to this, Oppenheimer, a prominent equity mutual fund had announced that it is considering the acquisition of B&S at a price of $32 per share.

Thus, the management of the company is considering which strategy should be adopted in order to communicate effectively to the shareholders of the company as well as in order to convince the shareholders that the company would earn profits in the near future and that the stock price would also increase in the near future of the company..........................

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