1. What was the underlying corporate strategy behind the development of Greyhound
portfolio of investments up to Teet appointment? Was Trautman correct to pursue this
strategy? What were the advantages and pitfalls of this strategy?
Trautman corporate strategy behind the development of Greyhound portfolio of
investments up to Teet appointment as CEO was using the profits from the business
operations to push the Greyhound brand into other ventures. Trautman felt that through his
acquisitions and divestitures Greyhound would have greater resistance to economic
downturns.
I feel that Trautman was not correct in pursing this strategy. At the time he created more
expenses than profit for the company by not thoroughly strategizing the acquisitions.
Advantages Disadvantages
Over $45 billion in profits Conflict amongst the managers
The company had a hand in 5 major divisions.
2. What environmental factors affected Greyhound businesses? Could anything have been
done to control for environmental factors? In what ways did they distort the picture of
Greyhound performance?
Environment factors affected Greyhound businesses were de-regulation of the competition
in the bus business and declining revenues from passengers.
I feel that nothing could have been done to control the de-regulation of competition, but
responding to competitor prices by providing price breaks of their own when they were not
in the position due to lack of consumer interest.
They distorted Greyhounds performance by converting the company-owned terminals to
commission agencies, creating 4 stand-alone regional bus companies, new travel and
