Strategic Planning at Compass

Paper Summary:

This paper discusses strategic planning issues related to the company, Compass. It discusses their restructuring and their acquisition spree of 2001 and looks at the two major affects that this acquisition spree had on Compass' performance. The paper then discusses the UK market and looks at the challenges that this market presents for Compass.

From the Paper:

"A corporate-wide strategy would be to address weaknesses in governance and public relations. Compass' public relations issue in the UK took them by surprise, when it probably should not have. The company had a tendering problem that cost them a place as a UN vendor and subjected them to lawsuits from competitors. This scandal resulted from poor governance. The chances of such problems occurring may be minimal but the costs are high. As with the Jamie Oliver scandal, Compass' response was lacking, scapegoating a couple of employees even though subsequent investigation uncovered further irregularities (Russell and Rosett, 2006). Systems should be in place to better monitor such activities and the company needs to develop a strong program to communicate corporate ethics, especially with regards to tendering."

Sample of Sources Used:

• Russell, George and Rosett, Claudia. 2006. 'UN Procurement Scandal: How Far did the Inside Information Travel?' Fox News [Online] Available at: http://www.foxnews.com/story/0,2933,184495,00.html
• Porter, Michael. 1979. 'Porter's Five Forces Analysis' QuickMBA [Online] Available at: http://www.quickmba.com/strategy/porter.shtml
• Weinberger, Christiane 2005 'The US Food Service Market, 2004' Planet Retail [Online] Available at: http://www.planetretail.net/Home/PressReleases/PressRelease.aspx?PressReleaseID=27665
• King, Paul 1997 'Greater than the Sum of its Parts' Nation's Restaurant News. [Online] Available at: http://findarticles.com/p/articles/mi_m3190/is_n42_v31/ai_19926857
• Interview with Michael J. Bailey, 2004

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