Waterford Crystal A Case Analysis :: essays research papers

Waterford CrystalWaterford fruitcake was started by two brothers, George and William Penrose, in 1783. It was the most notable of all Irish crystallizing companies. In 1799, the Penrose brothers sold Waterford blur to the Gatchell family. The crystal industry was prosperous until 1825. Irish glass manufacturers began to slowly close due to high export duties, the economic depression, and a lack of capital. Waterford Glass was the plump to close in 1851. It was reestablished nearly a century later by Charles Bacik and Bernard Fitzpatrick. In 1947, they set up a factory in Waterford, Ireland. A bend point in the companys history came in 1950 when Joe McGrath made a sizable investment in Waterford Glass. He invested the capital needed to convert the small crystal manufacturing company into one with the potential to become a major player in the crystal industry. This investment gave his family control for the next thirty-five years. Joe McGrath was committed to Ireland and providin g jobs for his country. He wanted to reduce the countrys high unemployment level. His focus for Waterford Glass was on growing the company through exports to the United States. In 1966, Joe McGraths son, paddy field McGrath, took over oversight of Waterford Glass. same his father, he was dedicated to Ireland and to providing employment opportunities for the Irish. McGraths quest to provide more jobs for the Irish led him to diversify the company. By 1983, the company had acquired more than thirty non-core businesses. To reflect the expansion, management changed the companys name to Waterford Glass Group. In 1985, Paddy McGrath resigned as chairman of Waterford Glass. Concurrent with Paddy McGraths resignation, Paddy Hayes was appointed chairman and CEO of Waterford Glass Group. He immediately began to sell off the non-core businesses in an effort to reduce the companys high debt level. Waterford Glasss debt was virtually eliminated with the issue of American Depository Shares (AD S) on the United States NASDAQ market. On November 28, 1986, Waterford Glass acquired Wedgwood, a two hundred year old manufacturer and marketer of fine bone china. Paddy Hayes was named the chairman and CEO of both companies and Paddy Byrne was appointed CEO of Wedgwood. In 1989, the companys name was changed to Waterford Wedgwood. Three divisions were created as a result of this acquisition the Waterford Crystal division, the Wedgwood division, and the Creative Tableware division. In 1989, Paddy Hayes resigned from his rank as chairman and CEO of Waterford