Rescuing a telecom giant from the jaws of bankruptcy: a case study and an interview with Sir Richard Lapthorne, chairman of Cable & Wireless

Purpose – The purpose of this paper is to demonstrate key strategic decisions involved in turning around a large multinational operating in a dynamic market. Design/methodology/approach – The paper is based on analysis of archival documents and a semi-structured interview with the chairman of the company credited with its rescue. Findings – Turnaround is complex and involves both planned and emergent strategies. The progress is non-linear requiring adjustment and change in direction of travel. Top management credibility and vision is critical to success. Rescue is only possible if the company has a strong cash generative business among its businesses. The speed of decision making, decisiveness and the ability to implement strategy are among the key ingredients of success. Originality/value – Turnaround is an under-researched area in strategy. This paper contributes to a better understanding in this important area and bridges the gap between theory and practice. It provides a practical view and demonstrates how a leading executive with significant expertise and successful turnaround track record deals with inherent dilemmas of turnaround

Recategorization and subgroup identification: predicting and preventing threats from common ingroups

Much work has supported the idea that recategorization of ingroups and outgroups into a superordinate category can have beneficial effects for intergroup relations. Recently, however, increases in bias following recategorization have been observed in some contexts. It is argued that such unwanted consequences of recategorization will only be apparent for perceivers who are highly committed to their ingroup subgroups. In Experiments 1 to 3, the authors observed, on both explicit and implicit measures, that an increase in bias following recategorization occurred only for high subgroup identifiers. In Experiment 4, it was found that maintaining the salience of subgroups within a recategorized superordinate group averted this increase in bias for high identifiers and led overall to the lowest levels of bias. These findings are discussed in the context of recent work on the Common Ingroup Identity Model.