Waterford Wedgwood

I. Waterford Wedgwood PLC – 2008

II. Case Summary

Over the past two centuries, Waterford crystal has grown to be one of the world’s best known and valued crystal brands. In addition in gracing the tables of royalty, fine establishment and families, Waterford crystal adorns the New Year’s Eve Ball in Time Square, trophies for championships in almost every major sport, and the chandeliers in the Kennedy Centre, Windors Castle, and Westminster Abbey.

The beauty and refinement of the Waterford crystal reflect the creativity and skill of its artisans and craftsmen. The design reveals uniquely Irish influence coupled with the finest modern design. Waterford pieces become family heirlooms cherished for generations and in style for lifetimes. Waterford has recently diversified into other areas of household luxury products and entered into a number of collaborative and cooperative relationships with famous designer including Versace, Bulgari, Jasper Conrad and John Roche, as well as internationally known chefs.

However, Waterford has come upon hard times of late. The company’s net income for 2007 was negative 270.8 million euros, preceded by negative 183.9 million euros in 2006. Waterford needs a clear strategic plan for the future.

History

Glass has been regarded with significant respect in civilization since the owning of the Iron Age. Evidence of glassmaking has been found by archeologists in Ireland dating as far back as the 13th century. Waterford crystal was founded over 225 years ago on the quays of the Irish port of Waterford by two prominent developers and businessmen, brothers William and George Penrose. They employed a number of local artisans who produced a crystal of brilliance and clarity unmatched by any in the British Isle. In short order, merchant ships with cargoes of the fine crystal were bound for ports throughout Europe across the Atlantic in North America. The crystal produced in Waterford City developed an unequalled reputation in a relatively short period of time. However, the company ceased operating for more than a hundred years after falling on hard times.

Following World War II, in an era of increasing Irish independence and enterprise, glassmaking once again commenced in Waterford and a small factory was set up only 1 ½ miles from the original factory on Merchant’s Quay. Since that time, Waterford has opened additional factories in Ireland and around the world, but its principal production site remains just outside of Waterford.

In 1967, Waterford became a listed company on the London Stock Exchange. The present Waterford Crystal maintains strong ties with its predecessor – namely, a dedication to purity of color, design, and quality in their crystal. However, the company today comprises far more than just crystal. Waterford Wedgwood, plc,