DARDEN RESTAURANTS, INC. - 1999

CASE QUESTIONS

Notes:

a) You are being provided with an annual report for 1999 (year-ended 5/30/99) for Darden. You are responsible for returning these to me, without writing on them, with your case. Your case will not be considered complete without return of these materials.

b) You need to research and obtain complete information on the two most important competitors in the same market as Darden. You also need to research information regarding the industry. The summary sheets I am giving you are not sufficient. Since many companies in this industry have different year ends, you should generally use the most recent year ends for which information is available.

c) This case is as of 5/30/99. Subsequent company actions or events should not be used to justify or support any recommendations or analysis.

Questions:

1.     A. Clearly and specifically define this business as it now exists and its market in one clear and specific sentence. This must be a complete definition (customer, product/service, and geographic area at a minimum).

        B. Provide full support as to why this is the best definition. Address each part of the definition.

        C. What does this theory recommend for the company? Explain.

2.    A. List the company's two most important competitors. Justify your selection of each in terms of their importance and their similar market definition.

        B. For each competitor, provide a description of their market(s), highlighting all the various ways they may differ from the company's.

3.    A. Prepare a Competitive Profile Matrix for the company, comparing it the TWO MAJOR competitors you defined in #2. Use 10 to 12 factors. Be sure you use competitive factors and the same industry you defined in #1.

        C. What does this theory recommend for the company? Explain.

4.    A. Develop a BCG matrix for the company. Clearly and fully state facts to support your conclusions for each axis and carefully draw the chart to scale. Be sure to use the same industry you defined in #1.

        B. What does this theory recommend? Explain in BCG terms. Do not use David’s wording or recommendations.

5.    A. What one major strategy should this company pursue now? You must be specific (not generic) and support fully. Support for your choice being the most appropriate choice is critical.

        B. Clearly relate and justify your proposed strategy in relation to the theories in #1, #3, and #4. Be specific to the theory.

See Darden FAQ for answers to frequently asked questions about this case.

See Research Case Notes for suggestions on research cases.

See Darden Research for Darden specific research links.

- Q1 - 5/10/00 -

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