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Market Leader Intermediate 3rd edition SB

Background Una Sports

Background Una Sports S.p.A is an Italian sportswear manufacturer. It was founded by Franco Rossi in 1978 and has since become a world-famous company. Originally, it specialised in tennis shoes, but later it diversified into football, athletics, tennis and volleyball clothing. The directors of the company are of different nationalities, and the working language of Lina Sports is English. During the last three years, Lina Sports's annual results have been disappointing. Profits have fallen steadily while costs have risen, and competition in its main markets has been fierce. At present, it is reviewing its strategy in order to improve its performance. It also faces the possibility of being taken over. A giant French retailing group has announced that it would like to acquire the company, but only in the event of a 'friendly takeover', with full agreement from the present management. scanned for Paul Jennings

UNIT 11 •• LEADERSHIP Franco Rossi is now 58 years old. He would like to become Chairman of the company in the near future and to appoint one of the present directors as CEO to run Una Sports. There are three possible candidates for this position. Each candidate will present his/her ideas for the company's future strategy to the board of directors. The director who makes the most persuasive presentation will replace Franco Rossi as CEO of the company. Problems faced by Lina Sports A report by IPS Consultants identified four reasons for Una Sports's poor results in recent years. The company had: • launched too many product lines in a wide range of sports • invested in too many expensive endorsements with top sports people • suffered from fierce competition from stronger rivals • lost its reputation for being innovative. I i.iN ­ SPOR .. Strategies for turning round the company The leadership candidates will present three alternative strategies for the Board to consider. Consider which, in your opinion, appears to be the best one for the company. Do not discuss your choice at this stage. Strategy 1 Una Sports must give up its independence and merge with, or be taken over by, a larger, financially stronger company. Strategy 2 Una Sports should acquire a number of smaller companies and focus more all making sports accessories. Strategy 3 Una Sports should grow organically by revising its organisation, product ranges and marketing strategy. 1 Divide into two groups: Group A: The three directors, each presenting a different strategy to the board Group B: Members of the board. 2 Look at your role card and prepare for the meeting. Director 1: Turn to page 139. Director 3: Turn to page 139. Director 2: Turn to page 143. Group B: Turn to page 145. 3 Each director presents his/her ideas for the company's future strategy and answers any questions the other board members wish to ask. 4 The other board members discuss the three presentations and decide which director has given the most convincing presentation. 5 All board directors discuss the future strategy of Una Sports and add any comments they wish. Writing As Chairman of Una Sports, write an e-mail to the Head of IPS Consultants summarising the three business strategies and indicating which one has been chosen, giving reasons for your choice. Ask the Head of JPS to comment on your decision. Watch the Case study commentary on the OVO-ROM. V c:.l Writing file page 127 scanned for Paul Jennings 111

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