House of Beretta

Critical Issues/Concerns in the Case:

Beretta’s core competency is in innovation and technology. They have hand carving on guns and robotic carvings

Making effort to produce products wide scope of products in terms of cost and quality

They are appealing wide variety of customers – hand carving vs. robotic

Ability to reach a ride variety of customers from various income levels (hard carving very expensive and robotic ones are cheap)

1) 500 years old family owned business (average lifespan of business???)success of family

500 years is a lot of time for business to be around.

2) How to execute the reorganization of Buretta. (old, a lot of culture, traditions, and anything strong culture and tradition is hard to change). Culture is ingrained in organization and it takes years to build. Change is a problem in this situation

Alternatives for addressing the key issues:

Hire change consultants; change management (secondary source)

International business structure strategies – maybe multidomestic, global strategy… decentralize decision making towards other markets vs. everything go to Italy; different business units in geographically strategic locations to adapt to global environement

Company 500 yrs in Italy that global economy is causing a need for reconsideration of company structure requiring company restructuring ….where managers make decision how to target product

Changing economic environment is causing a need to change to be competitive in global market.

2000 the world became faster ….dotcom

May 2004 time period of case, in 2004, after dot com and world is changing that is the catalyst of change buretta’s core competency is technology; communication faster, world opening up

Businesses able to connect a lot quicker; buretta must change organizational structure to be on the cutting edge. One of their goals preserve core competency and creativity; decentralize decision making to eliminate issues of agility give employees...