L. CARLIER
EXERCICE MSC2 IBM / MDM
12.2021
International Strategic Management
I. Read the business case and answer to the following questions (out of
20 points)
You are consultant and you are collecting the following information about a new customer:
ARC company
Your manager requests you to answer to the below questions in order to support him …
ARC company
GLOBAL CONTEXT
Arc was founded in the North of France in Arques, which is still home to the Group’s head office, its
Research and Development division and the world’s largest glass-production plant.
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L. CARLIER
EXERCICE MSC2 IBM / MDM
12.2021
Firmly established in France and its home region, Arc manufactures and distributes its products on every
continent
The Group makes beauty and elegance affordable for everyone, all over the world.
HISTORY
Due to a new market during the early 19th, the small town of Arques, in the north of
France started its association with glassmaking.
The 1st enterprise of glasswork in the North of France was created by Charles
Carpentier in St Martin arter in 1823. Two years later, the initial “Arc Holdings” was
created by Alexander Des Lyon De Noircam.
It was just a small family business limited on the French market which finally known
an amazing growth after the First World War.
Luminarc was launched in 1948 and has fastly become its flagship mid-priced
brand. Since then, the company had the wind in its sail and continued to innovate.
Since 2012, Arc International suffers from the very-low priced of the Asian market.
In 2018, Tim Gollin becomes the new Executive President of the Group.
Key FIGURES
Arc gross sales in 2019: 933 M€
There are 10 000 employees including 5 200 in the French site.
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L. CARLIER
EXERCICE MSC2 IBM / MDM
12.2021
Arc develop different type of brands:
Luminarc : different styles, patterns and colors in ultra-resistant and trendy tableware.
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Arcopal : the brand embodies simplicity and strength. Arcopal is three times more break resistant
than other tableware brands.
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Crystal d’Arc: products devoted to beauty and elegance, made with an exceptional material Krystal.
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Chef & sommelier: created in collaboration with master chefs and sommeliers, each collection
combines elegance and creativity.
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Arcoroc is devoted to foodservice professionals
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L. CARLIER
EXERCICE MSC2 IBM / MDM
12.2021
THE VISION
WE HELP PEOPLE ENJOY LIFE,
EATING AND DRINKING WITH BEAUTIFUL,
AFFORDABLE, SUSTAINABLE AND EASY TO USE PRODUCTS
QUALITY
Unique, incomparable, unrivalled. The result of long-standing know-how, unique design creativity and
industrial expertise. Quality has always been quintessential to each Arc product.
COST
Arc makes products that are original, innovative, simple and affordable. The Group uses its know-how to
make products that all families can afford, celebrating tableware in every shape and form.
INNOVATION
Daring, creating, surprising… Original shapes drawing on revolutionary techniques, Arc is constantly
innovating to take tableware to a new level.
ENVIRONMENT
The Group is fully aware of its responsibilities and is committed to sustainable development on every level:
environmental, economic, and social.
THE KNOW-HOW
The Research and Development Division is based in Arques, the historic plant of the Group. Working in a
state-of-the-art laboratory, our researchers and chemists push the boundaries of technology with three key
objectives in mind.
The Arc group provides custom-made products and services for all types of companies.
Arc also works with interior decoration and furnishing brands. The Group designs and produces exclusive
collections that are then sold under the brand’s name.
Each collection is produced on demand by the Business to Business Division, from the specification’s files to
promotion of the end product. The Division guarantees totally custom-made products and services.
Its business is divided into four main segments: industry, advertising, premium, and loyalty programs.
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L. CARLIER
EXERCICE MSC2 IBM / MDM
12.2021
Its customers include major fast-food restaurants and beverage manufacturers, the world’s leading soda and
cola company, and world-wide furniture and home decoration retailers.
THE SIMPLIFIED SWOT ANALYSIS
THE STAKES AND PREVIOUS STRATEGY PRESENTATION
In 2000 the company suffered from Asiatic competition with low price although production was focused on
France.
To reduce transport costs, the old GM decided to move production in China, Spain, and United States in
order to be closed to the main markets.
To reduce intermediates, Arc buyback wholesalers and distributors but this strategy was not enough to
counterpart Asian competitors.
In 2015 Arc decided to upgrade product range. Consequently, the main customer such as Carrefour, Auchan
and Casino stop their national listings.
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L. CARLIER
EXERCICE MSC2 IBM / MDM
12.2021
In few years, the company suffer from financial situation and debt; in 2017, the debt achieved 300 M€ for 800
M€ of turnover.
In 2018, Tim Gollin arrived as vice president of the company and would like to find the right strategy in order
to save the company. He will propose 3 main alternatives:
1.
Focus on BtoB and Hotels / restaurant clients

Tenders are clear with significant volumes.

This type of clients is loyal with a renewal every 4 years.
2.
Reinvest in industrial site in France and relaunch brands

Modernise industrial site with help of American investment

Develop brand strategy with marketing support
3.
Delocate total of production in Asia or in other country with lowest cost labor-force

France represents 50 % of total turnover of the Group

A new type of client appears Russia and Middle east countries

The transport costs are not attractive

The distribution request lean management with short delay.
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1. Describe the main SBU of ARC Group, according to your strategic approach and
analyse them due to your favoured matrix (5 points)
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2. Complete the strategic diagnostic in using 2 another tools (internal or external)
in justifying your choice (5 points). Propose a sum-up conclusion.
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L. CARLIER
EXERCICE MSC2 IBM / MDM
12.2021
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3. What are the main Key success factors of Arc Group (5 points)
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4. What is the best scenario, according to you, in justifying your choice and
helping Tim Gollin to take the right decision-making? (5 points)
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