The Making of Harcourt General: A History of Growth Through Diversification 1922-1992 - Hardcover

Pruitt, Bettye H.

Hardcover

ISBN 10: 0875845096 ISBN 13: 9780875845098

Publisher: Harvard Business Review Press, 1994

Synopsis

The Making of Harcourt General describes the transformation of a small movie-theater proprietorship, formed in the early days of the industry, into a major diversified firm with businesses in publishing (Harcourt Brace), retailing (Neiman Marcus), and insurance as well as theaters (General Cinema). As Mid-West Drive-In Theatres, Inc., the company was a pioneer in its industry, first with family-oriented drive-ins and later with shopping-center theaters. From early on, however, driven by the cash-generating power of the theater business, it pursued a strategy of diversification, navigating the conglomerate era, the junk-bond-fueled "merger mania" of the 1980s, and the more painful period of restructuring in the early 1990s. This book offers a unique inside view of the evolution of Harcourt General, but also places that evolution in a broader context, illuminating the dramatic changes that have occurred in the business environment in those years.
Harcourt General's diversification strategy has taken the company through an exciting series of acquisitions. In the late 1960s, as General Cinema, it entered soft drink bottling, gaining an early lead in the consolidation of that industry. From a "white-knight" rescue of Carter Hawley Hale in 1984, it emerged in 1988 with a new specialty retail chain, the Neiman Marcus Group. In 1992, General Cinema extricated the publisher Harcourt Brace Jovanovich from a heavy burden of junk-bond debt that threatened to drive it into bankruptcy - the deal that led to the renaming of the company Harcourt General. Throughout, the founding family has retained a controlling stake in the company and an active role in management.
In The Making of Harcourt General, Bettye H. Pruitt examines important issues confronting all diversified firms - the relationship between business and financial strategy, the assimilation of acquired businesses, and the tension between company divisions and the corporate office - as well as issues important to owner-managed companies, including succession and professionalization of management. Readers interested in diversification, family business, the movie exhibition and soft drink bottling industries, or simply the history of a successful company will find The Making of Harcourt General a remarkable tale of American enterprise.

About this title

About the Author

Bettye H. Pruitt is vice president of The Winthrop Group, a company specializing in the historical analysis of institutional development.

Reviews

The Winthrop Group is a consulting firm specializing in historical research and the preparation of commemorative corporate histories. Pruitt, a Winthrop vice president, has compiled this account of the growth and development of what started as a family-run chain of movie theaters, later evolved into the General Cinema Corporation, and finally became Harcourt General. Pruitt's well-written story is an illustrative case history in corporate diversification. Harcourt General's corporate family tree grew to include such well-known but disparate branches as Neiman Marcus, Sunkist, and the former Harcourt Brace Jovanovich. Pruitt effectively suggests the tensions that result as a family enterprise grows and turns public and those that arise as varying corporate cultures must blend. The company's somewhat schizophrenic name is but one example of this clash and shows how companies must redefine themselves in order to survive. In fact, after the period covered by Pruitt, Harcourt General sold off its theater business--that part from which the company originally grew. David Rouse

The Winthrop Group was commissioned by General Cinema to write its history in 1988. Pruitt, who is vice president of the Winthrop Group, worked on the project for six years. Her book traces the development of General Cinema from its beginnings in the theater and drive-in arena to its emergence as a major firm in the early 1990s with the acquisition of Harcourt Brace Jovanovich. Although Pruitt describes the leadership roles played by senior managers, she never loses sight of her primary subject-the company itself. She successfully describes and analyzes the larger trends that affected the company during the 70-year period of study. The end result is a well-organized, uncompromising corporate history. Highly recommended for academic libraries with large business collections.
Mark McCullough, Heterick Lib., Ohio Northern Univ., Ada
Copyright 1994 Reed Business Information, Inc.

Edition details

• Publisher: Harvard Business Review Press
• Publication date: 1994
• Language: English
• ISBN 10: 0875845096
• ISBN 13: 9780875845098
• Binding: Hardcover
• Edition number: 1
• Number of pages: 336