The Watson Group Case Study

There are three key issues in this case study. Firstly, Watson failed to evolve especially within the last few decades. The founder of the Watson Brothers Company clearly new the market at the time and developed both its production and sales strategy accordingly. It is evident that company was initially innovative in that it, “led the industry in the development of unique production processes”. However, drastic economic changes have occurred over the years which negatively impacted the industry. Despite these glaring external threat factors, Peter Watson refused to adapt to the current market situation.

Secondly, the Watson Group’s primary focus was on sales. Initially, when the company was founded, there was not much competition. The focus on sales would have been relevant at that time in order to create brand awareness. The company’s mission, “of being ‘number one’, the best-selling line in its chosen market” was certainly achieved in 2005 as it recorded, “the highest sales in the company’s history”. However, it also recorded its lowest profits.

Thirdly, the Watson Group only analysed the performance of the company as a whole. The company initially established itself with core family values and Peter Watson carried these values with him. He has often said, “we take care of our family” and “we are a team and it is our team spirit that has built Watsons into its leading position in this industry”. Peter Watson failed to analyse the individual sectors of the company and the needs of the young dynamic staff. Thus he was unable to enhance the poor performing sectors of the company and retain his staff.

Peter realised