Abstract
Lilliput Lane, based on the edge of the English Lake District, manufactures a range of miniature plaster cottages which are marketed to customers throughout the world, many of whom are committed collectors. This case study traces the early growth of the company in the 1980s, its subsequent setbacks, a successful turn‐around, followed by a flotation and sale in the 1990s. It focuses on the issues of strategic leadership, stakeholder expectations, core competencies, adding value, diversification and focus strategies. Lilliput Lane has been written for the purpose of class discussion. It should not be taken to reflect either effective or ineffective management.
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