Reference no: EM131520611

Question: Background The corporate history of the P Group ( P) stretches back 30 years. During that time, P has developed internationally and now trades in many diverse areas. Fifteen years ago, the company launched P Airlines, which has proved to be one of its most successful business ventures. Five years ago, the company established P Rail and obtained franchises for running rail services in its home country. However, P Rail has not achieved the success that P had intended and is frequently criticised for providing services which do not run on time. The brand The group has a distinctive brand name which was established when P's charismatic founder and chairman launched the first business venture. The majority of citizens in its home country have heard of the brand which has over time been applied to many diverse areas of business. The chairman believes the reputation of the brand name places a burden of responsibility on P not to disappoint its customers. The chairman himself has impressed his own personality on P by pursuing personal publicity in business ventures and becoming involved in high-profile and sometimes dangerous ‘leisure' activities. P has achieved a reputation for entering markets which are dominated by major companies, and has been successful in taking business from some major competitors by exposing their consistently poor service and complacency. The principal business approach which has been adopted is that of ‘brand stretching' across different products and services. Each company within the group runs it own affairs but they are all encouraged to help each other resolve their particular problems in a kind of family spirit. Key strategic factors The chairman has stated that P is in business ‘to be different' and that the P brand name should be clearly associated with this. It is considered essential by the directors that any products or services incorporated within the brand must help to build its good reputation, provide an opportunity to add value, and yield an appropriate trade-off between risk and rewards. The chairman considers that there are a number of key factors which have contributed to the success of P. The brand name is associated with being the consumer's champion, and has been very successful in delivering what the chairman refers to as a ‘sense of excitement' in most ventures to which it has been applied. In addition, the business contacts which have been established are important and he recognises that his own personality attracts customers and venture partners. P also encourages talented staff within the group to interact with each other in order to solve problems. The management style of P is therefore seen as a major contributory factor in its corporate success. Much weight is placed on its corporate image. The chairman explains that the quality of a customer's experience when coming into contact with P is the most important item in determining its success.