Strategic risk management at Titan Shipping Company: Lessons from Metallgesellschaft
Having finished his MBA earlier in the summer, Peter returned, as planned, to take over the helm of the family business. The past three months had been devoted to a close examination of the financial picture of both his family and the family business. During this time, he reacquainted himself with the current state of the shipping industry and Titan’s recent performance. Shipping tonnage had become a commodity business with shrinking margins and highly volatile prices. Companies which needed to ship could not depend on having an accurate figure for how much shipping tonnage would cost in the medium and long term. Such volatility was partly due to changes in oil markets, but, regardless of its source, it was hurting the business of Titan and its customers. Historically, Titan’s revenues came mostly from its long-term, loyal customers, but customer loyalty was declining. And Peter empathized with their position: Their business cycles were becoming increasingly short and their own margins thin – they had to ship at the lowest possible cost. Yet, in spite of being an extremely competitive and efficient shipping company, Titan just could not match those rates, since so many of its costs were fixed ahead of time. All of these events and findings were leading him toward a definite conclusion: Titan’s business model needed to be changed. Titan had to offer an innovative value proposition if it were to expand, or even hold on to, its customer base – it needed something to get them locked in. And whatever that turned out to be, it would also have to reduce Titan’s exposure to volatile freight prices so that it could get an improved valuation.
Metallgesellschaft
n/a
Cranfield University
Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]
Harvard Business School Publishing
60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]
NUCB Business School
1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]
IMD retains all proprietary interests in its case studies and notes. Without prior written permission, IMD cases and notes may not be reproduced, used, translated, included in books or other publications, distributed in any form or by any means, stored in a database or in other retrieval systems. For additional copyright information related to case studies, please contact Case Services.
Research Information & Knowledge Hub for additional information on IMD publications
US President Donald Trump’s full embrace of digital assets has sent shock waves through the cryptocurrency market, driving a price surge while creating both new opportunities and heightened risks for investors and corporations. Last week, Mr Trump...
The case examines the entrepreneur-led carve out and buyout of dss+, DuPont’s safety and sustainability consulting division, by Gyrus Capital and dss+ management team. dss+ (formerly “DuPont Sustainable Solutions”) played a pivotal role in high-ri...
Ten years from now, we’ll know which companies best navigated geopolitics. And the hunt will be on for enduring lessons. Which firms made the smartest adjustments to their global commercial footprint by exiting certain markets, doubling down on ot...
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
in I by IMD Brain Circuits 25 March 2025
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Case reference: IMD-7-2639 ©2025
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications