The document presents a business case analysis for Loewen Group Inc., a large Canadian funeral services corporation. It provides background on the company's history and growth through acquisitions. By the late 1990s, Loewen Group was facing financial distress due to weak management, high debt levels, and aggressive acquisition strategy. The analysis identifies strengths, weaknesses, opportunities, and threats. It recommends strategies like pre-planning services and clustering locations but advises against further acquisitions. In 1999, Loewen Group filed for bankruptcy protection due to plunging stock prices.

1. Shanto-Mariam University of Creative Technology
Project Management & Appraisal
Presentation on:
Business Case: Loewen Group Inc.
Group: 05
Sohan Bepary,
Mashudul Hasan Chowdhury,
Martein Joy Sikder,
Muntasir Bin Mostafa,
Pavel Karapiat

2. Loewen Group Inc.
the expectations of the families we serve

3. Group Members
• Sohan Bepary
122-401-064
• Mashudul Hasan Chowdhury
122-401-043
• Martein Joy Sikder
122-401-026
• Muntasir Bin Mostafa
122-401-048
• Pavel Karapiat
112-401-118

4. Contents
• Introduction
• Histories
• Company’s Chronology
• Problem Statement
• Subjective Analysis
SWOT
• Objective Analysis
Ratio Analysis
• Recommendation
• Conclusion
• Company at present

5. Introduction
• Funeral industry has been one of
tradition, representing a mixture of
religion and business.
• Most people a funeral has a religious
dimension.
• Stability to the industry by faith’s final
rite can be administered .

6. Histories
• The Loewen Group Inc. is a
funeral service corporation
located in British Columbia,
Canada.
• The largest funeral service
corporation in Canada and the
second largest such firm in
North America

7. Company’s Chronology
Key Dates:
• 1961: A.T. Loewen opens funeral home in Steinbach,
Manitoba.
• 1985: Ray Loewen forms Loewen Group, Inc.
• 1991: Loewen Group moves headquarters to
Burnaby, British Columbia.
• 1996: Loewen Group settles lawsuit with Jerry
O'Keefe, a Mississippi funeral home operator;
Loewen acquires Prime Succession Inc., the largest
private funeral home business in North America, for
$295 million.
• 1999: Loewen Group files for Chapter 11 bankruptcy
protection in June.
• 2000: Company announces plans to shift its
headquarters to Toronto.

8. Problem Statement
• Weak Management system
• Financial Distress
• Company Debt
• Aggressive Company acquisition

9. Subjective Analysis
SWOT ANALYSIS
Strength Opportunity
Weakness Threats

10. Subjective Analysis
SWOT ANALYSIS
Strength:
• Innovative business
• Geographic area
• Technology
• Available resources

11. Subjective Analysis
SWOT ANALYSIS
Weakness:
• They followed the industry trends
• Had no global strategy for long run
business
• Didn’t offer competitive pricing

12. Subjective Analysis
SWOT ANALYSIS
Opportunity:
• Life insurance for customer
• New Service to customer
• Market Diversification

13. Subjective Analysis
SWOT ANALYSIS
Threats:
• High fixed operating cost
• Limited profit margin
• Number of services are low
• Strong competitor like SCI
• Government regulation

14. Objective Analysis
RATIO ANALYSIS 1997 1998
Liquidity
Current Ratio 1.64:1 0.32:1
Quick Ratio 1.47:1 0.29:1
Asset
Fixed Asset Turnover 0.27 0.26
Inventory Turnover 21.44 24.48

15. Objective Analysis
RATIO ANALYSIS 1997 1998
Debt
Debt Ratio 0.73 0.81
Debt-to-Equity 2.12 4.16
Interest coverage 0.22 -4.22
Profitability
Gross Profit Margin 32.64% 25.67%
Operating Profit Margin 22.58% 13.64%
Net Profit Margin 3.73% -52.72%

16. Recommendation
• Preplanning: Preplanning allows survivors to
avoid the stress and uncertainty of fulfilling the
wishes of the deceased after their death
• Clustering the funeral homes and cemeteries
service together for increasing demands
• Acquisition strategy is not suggested.

17. Conclusion
• In early of 1999, the Loewen’s stock price went
from $35.75 to $5.125 per share.
• On June 1, 1999, the company filed for Chapter
11 bankruptcy protection in the U.S. and creditor
protection in Canada.
• On August 10, 1999, the company was notified
by New York Stock Exchange that its stock had
failed to attain a minimum share price of $1 over
a 30-day trading period.
• Finally to save the company, Paul Houston was
selected by BOD to replace Lundgren as
President and CEO.

18. Company at Present

19. Thanks for Your Attentions.
When you are born, you cry, and the world rejoices.
When you die, you rejoice, and the world cries.
-Buddhist Saying