The Cobbler – A Practice Case Study

Cobbler returned to Edinburgh at the conclusion of the Battle of Waterloo in 1815, following the Black Watch Regiment to their home depot. Since joining Wellington for the Peninsula campaign in 1810, Angus and his wife Judith had been camp followers supplying Regimental Officers with the finest buckle brogues. Through their hard work and thorough attention to detail, they had created a strong reputation for quality highland shoes and, as a result, this strategy met with success during the first two years of operations in their new Edinburgh shop. Angus recalls, only six months earlier, reading the devastating Edinburgh Courier article regarding the Regiment. The Black Watch Regiment was to be significantly downsized as the Napoleonic Wars were at an end.  The impact of the government’s actions on the small business was immediate.  Within a few months, the cobbler and his wife were unable sell sufficient shoes to bring in the revenue required to cover their costs and put food on the table. Their future prospects looked bleak indeed. Over a cup of hot tea, the cobbler and his wife contemplated late into the evening whether the business was sustainable. Angus knew he must do something – but what?

Agnus and Judith had heard of a distant, tiny, elf community that was prepared to provide buckle brogues in exchange for simple meals and scraps of cloth. Angus had also been made aware that, increasingly, the elf community was being approached by competitive cobblers to form part of their outsourced value chain. The elves seemed to be largely motivated by profit without showing any loyalty.  Contracting with the elf community would stabilize the Cobbler’s situation. But, was there a risk that the tiny elves would go into business for themselves once the inner workings of their operation were shared with the elves?

The operational and administrative functions of this mom-and-pop show were simple. Decisions were made jointly with the Cobbler responsible for the manufacturing of the buckle brogues and Judith attending to the administrative requirements for their small business. Their small workforce shared the values of the Cobbler and his Wife and took pride in their work. They did not have any children or family interested in joining the enterprise. Monthly, Judith reported the growing gap between the strategic and financial objectives they had mutually set and the reality of their dwindling bank accounts and sales turnovers.

Questions swirled in the minds of Agnus and Judith…  Should they stick closely to their existing, yet haemorrhaging buckle brogue niche? Should they add new shoe lines and establish a market share in the general shoe market in Edinburgh? Or perhaps, should they establish branch shops in other communities that were home to other regiments? Indeed, the market had changed so much that, as the evening drew to night, the cobbler and his wife wondered if they should get out of the shoe business altogether and seek other opportunities.

Clearly, Angus and Judith had reached a strategic inflection point.  They were proud of their motto, “We provide quality footwear to the noblest of Highland Warriors”, and the brand image they had built as the provisioner to the Regiment over the years past. But, in light of the new environment, they wondered if they could maintain their focus in this turbulent environment or if they should explore new alternatives. What do you think?

COBBLER CASE FINANCIALS (H2)

THE COBBLER CASE QUESTIONS[1]

Reflect on the following questions to stimulate discussion around strategic management concepts and notions.

1. What problems does Angus Fraser have? What issues need to be addressed? Do Angus and his wife need a new mission? New objectives? New strategy?
2. Perform a comparative analysis of the reasons to change and the reasons to continue.
3. What strategic option(s) do the Fraser’s have? Is continuing with the present strategy an option or is the present strategy obsolete? Is a whole new strategic direction (mission, objectives, strategy) needed? Perform a comparative analysis of the reasons to change and the reasons to continue.
4. What are the pros and cons of accepting a continuing and possibly growing their outsourcing relationship with the tiny distant elf community?
5. Would a new organizational structure be needed? Can Elves be empowered and trusted?
6. What action plan would you recommend to Angus Fraser?
7. What action steps should Angus Fraser undertake to implement the action plan? What will ensure the success of these steps?

[1] Instructor’s suggested answers to these case questions, including PowerPoint slides, can be made available by contacting  ( link Chirag??)