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Hallmark Cards, Inc.: In Search of Turnaround
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Reference: IVEY-W29725-E
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Year: 2021
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Number of pages: 10
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Geographic Setting: United States
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Publication Date: Jan 31, 2023
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Source: Ivey Business School (Canada)
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Type of Document: Case
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Industry Setting: Manufacturing
Description
In June 2021, the chief executive officer of Hallmark Cards Inc., a leading US greeting cards and gifts company, faced challenges as the digitalization of cards was gaining pace. This growing trend forced the company to overhaul its operations. Although it tried to cope with the changing business environment, the company suffered both in revenue and profit marking. The chief executive officer took efficiency-increasing measures and laid off employees from the greeting cards division, retail business, and corporate support functions. He also invested in greeting card digitalization and innovation efforts, but was wondering if he should focus more on efficiency or innovation measures to achieve turnaround for the company’s operations. What innovation strategies should he pursue to make Hallmark Cards Inc. relevant to changing consumer preferences?
Learning Objective
This case is intended for undergraduate and graduate-level courses on strategic management. The case deals with the coping and turnaround management challenges that a company’s chief executive officer faces in a changing business environment. The case presents students with an opportunity to understand how technological changes could render products irrelevant within an industry. It encourages students to explore how companies can address changes in consumer preference and harness opportunities presented by a changing technological environment for businesses. After working through the case and assignment questions, students will be able to
- examine related versus unrelated diversification strategies;
- evaluate culturally relevant industries and the longevity of such industries amid changes in technology;
- explore effective turnaround management strategies;
- critically analyze strategic options for innovation;
- examine the effectiveness of turnaround strategies; and
- conduct a TOWS (integration of threats, opportunities, weaknesses, and strengths with each other) matrix analysis.