Strategic Implementation and Control IIIB (MNG3702)
Institución
University Of South Africa (Unisa)
“The aim of strategic management is to ensure that an organisation achives a competitive advantage and sustains its competitive advantage over competitors.”
Apply the process perspective of strategic management process to the Michelin company, focusing on the ‘History of the Michelin Guide�...
Strategic Implementation and Control IIIB (MNG3702)
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Read the Michelin case study provide thoroughly to answer the questions that follow. All the
questions are based on the case study.
Michelin is a leading French brand and manufacturer of tires and rubber products.The company was
founded in 1888 by two Michelin brothers and grew to one of the largest tyre manufacturers in the
world, with a market share of 14.8% in 2023. Oddly enough, the company also sells popular travel
guides and road maps. They can make or break chefs by the number of Michelin stars they award to
their restaurants. Michelin stars are a rating system used by the red Michelin Guide to grade
restaurants on their quality and excellence. Restaurants can be awarded one, two or three stars, based
on various criteria, such as quality of their ingredients used, the harmony of flavours in their dishes,
the mastery of various techniques, the personality of the chef, and the consistency of the menu. The
Michelin Man (Bibendum) is known word wide.
The history of the Michelin Guide
The Michelin Guide is considered by many to be the hallmark of global fine dining and quality
cuisine. It has immense power over chefs, restaurateurs, and foodies world wide. It may divide
opinions across the food service industry, but its influence is undeniable. French chef Paul Bocuse, a
pioneer of nouvelle cuisine (a modern French style of preparing dishes that avoids rich, heavy foods,
rather emphasizing the freshness of the ingriedients used in prepring the dishes and the presentation
thereof), once said, “Michelin is the only guide that counts.” The birth of the famous little red book is
a very interesting story.
When the Michelin tire company was established in 1888 by brothers André and Édouard Michelin, it
was a time when driving was perceived as a novelty to most. There were less than 3 000 cars in France
at the time. However, the brothers were quick to recognize driving and mobility as a lasting trend. To
encourage more road travel, and hence boost tire sales, they decided to create a comprehensive
guidebook for motorists which catalogued hotels, restaurants, mechanics, and gas stations. In 1900, the
very first edition of the Michelin Guide was published, and 35 000 copies were given out for free.
As the tire company grew, so did the Michelin Guide. Country-specific editions were published
throughout Europe, starting with Belgium in 1904. A charge was introduced for the first time in 1920
when André Michelin walked into a garage and saw copies of the guidebook being used to support a
workbench. Realising that “Man only truly respects what he pays for,” the company started charging 7
francs for the guides.
By that time, the restaurant section of the Michelin Guide had become so popular that the company
started to recruit anonymous inspectors to visit and review restaurants. Six years later in 1926, the
Michelin star system was born. There were other notable changes as well, namely listing restaurants by
specific categories, the debut of hotel listings and the abandonment of paid-for advertisements.
The single-star restaurant review system also expanded to the present a three-star system in 1931:
* “A very good restaurant in its category.”
** “Excellent cooking, worth a detour.”
*** “Exceptional cuisine, worth a special journey.”
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