SALLS MANAGLMLN1

Ass|gnment#2







SU8MI11LD 8 MuPAMMAu 8lLAL
LNkCLLMLN1 NC 01111081082
CLASS 88A 7




SU8MI11LD 1C Sl8 ALlf
DA1LD 2342011


Case -
Scripto, Inc.

;est|on#1 Does the annonced new market|ng or|entat|on represent any rea| change from the
company's h|stor|ca| or|entat|on?
- markL orlLaLlo broughL slglflcaL chag l Lh pasL ScrlpLo had placd graLsL mphasls o
sals 1hls ofL rsulLd l Lh ovrall markLlg pla blg formd aroud Lh sals pla lLh
markLlg rlgaLd Lo a poslLlo of lss slglflcac Lha sals 1h compa llmlaLd markL
rsarch ad Lh advrLlslg program as graLl curLalld Slc Lhr as somLhlg of a
proccupaLlo lLh sals aL Lh pas of markLlg Lhr as o markL orlLaLlo ad Lhlklg
ulLlg Lh varlous lmL of Lh markLlg ml lLo a coordlaLd program AfLr ScrlpLo as
acqulrd b 1okal slkl Lh maagmL orlLaLlo shlfLd from sals Lo markLlg uu Lo Lhls chag
l markL orlLaLlo Lh compa had rlLlg lsLrumL ad llghLr's sals of $170 mllllo l 1984 l
1980 lL had ol 8 prcL of LhaL markL buL b 1983 lL sold 24 prcL of Lh 300 mllllo llghLrs sold
aLloall 8for Lh advL of LlcLra LlghLr Compa dld oL spL LhaL much amouL o
advrLlslg buL afLr Lh aoucd markL orlLaLlo compa lLroducd LlcLra llghLr
lLh a advrLlslg budgL of $ 3 mllllo lL's mor Lha had b spL o llghLr advrLlslg

;est|on#2 1o what extent the h|stor|ca| boom and bst performance of Scr|pto |n |ts markets been
the res|t of manager|a| m|stakes or |s |t character|st|c of the |ndstr|es |nvo|ved?
Maagrlal prformac had hug lmpacL o boom ad busL prformac of ScrlpLo uLll Lh laL
1930s ScrlpLo as succssful ad proflLabl l Lh rlLlg lsLrumL ldusLr hovr du Lo
maagrlal dflclcls ad lll advlsd dclslo o caplLal pdlLurs ad producL aL Llm h
compLlLlo mad such dclslos cruclal Lh compa bga Lo slld doard uu Lo Lhs
maagrlal dflclcls b 1964 ScrlpLo's shar of Lh rlLlg lsLrumL markL had dclld Lo 10
prcL from hlgh of 16 prcL f ar arllr ad aL Lh sam Llm ScrlpLo droppd from scod Lo
flfLh plac l sals volum AfLr 1964 udr maagmL ScrlpLo spL havll Lo lmprov
producLlo faclllLls dlvrslfld lLs lvsLmLs rorgalzd maagmL prsol ad poslLlos ad
gav mphasls Lo Lh markLlg program 1h rsulL as a rvrsal of ScrlpLo's slld lLh sals
lcraslg b 40 prcL l Lo ars All Lhls shos LhaL maagrlal prLls ad maagrlal
dflclcls rsulL l Lh boom ad busL prformac of scrlpLo