Strategic Management

1. What was the underlying corporate strategy behind the development of Greyhound’s portfolio of investments up to Teet’s appointment? Was Trautman correct to pursue this strategy? What were the advantages and pitfalls of this strategy?

Trautman’s corporate strategy behind the development of Greyhound’s portfolio of investments up to Teet’s appointment as CEO was using the profits from the business operations to push the Greyhound brand into other ventures. Trautman felt that through his acquisitions and divestitures Greyhound would have greater resistance to economic downturns.

I feel that Trautman was not correct in pursing this strategy. At the time he created more expenses than profit for the company by not thoroughly strategizing the acquisitions.

Advantages Disadvantages

Over $45 billion in profits Conflict amongst the managers

The company had a hand in 5 major divisions.

2. What environmental factors affected Greyhound’s businesses? Could anything have been done to control for environmental factors? In what ways did they distort the picture of Greyhound’s performance?

Environment factors affected Greyhound’s businesses were de-regulation of the competition in the bus business and declining revenues from passengers.

I feel that nothing could have been done to control the de-regulation of competition, but responding to competitor prices by providing price breaks