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Waterford Crystal A Case Analysis

Waterford Crystal

HISTORY OF WATERFORD CRYSTAL

Waterford Glass was started by two brothers, George and William Penrose, in 1783. It
was the most notable of all Irish crystal companies. In 1799, the Penrose brothers sold Waterford
Glass 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 last 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 turning point in the company's 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 providing jobs for his country. He wanted to reduce the country's high
unemployment level. His focus for Waterford Glass was on growing the company through
exports to the United States. In 1966, Joe McGrath's son, Paddy McGrath, took over
management of Waterford Glass. Like his father, he was dedicated to Ireland and to providing
employment opportunities for the Irish. McGrath's 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 company's name to Waterford
Glass Group. In 1985, Paddy McGrath resigned as chairman of Waterford Glass.
Concurrent with Paddy McGrath's 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 company's high debt level. Waterford...