L.L. Bean: A Search for Growth Case Solution
In the summer of 2003, L.L. Bean’s CEO, Chris saw the state of his company in a position from which it could further grow. For almost 90 years, the company sold equipment and clothing for outdoor enthusiasts through an individual retail store in Freeport, Maine and its catalogues. For the last 30 years up until 1996, the organization’s sales growth rate increase approximately 20% per annum. However, the sales of the company stagnated despite hitting the billion mark in 1995. The company reacted with a structural reorganization and investment in its Internet sales channel. In 2003 and 2002, McCormick directed an effort to reduce overhead and enhance its internal systems, including the elimination of 1,000 jobs--which reduced year-round headcount by almost 15 percent. Its sales growth stayed at zero despite these projects, but regardless of that, it remained profitable with an impressive balance sheet..
McCormick viewed these three stores as the first of a chain of stores that would form a fresh selling channel and enable L.L. Bean to grow. Early results from the three new shops were below expectations; L.L. Bean spent significant time analyzing its retail store activities in an effort to learn where it could improve. As the business began to use those lessons in the stores, operation picked up, fueling McCormick's optimism that L.L. Bean could grow with retail stores.
PUBLICATION DATE: March 31, 2004 PRODUCT #: 504080-HCB-ENG
This is just an excerpt. This case is about STRATEGY & EXECUTION
