Case Studies Essays Samples
[...] Smarna Gora Holdings case study serves as an excellent example of a company going through the transformation period. The case identifies the challenges that the company faces in changing its orientation from socialist to a transitional capitalist economy. During the eleven years described in case the company transformed both its way of operations and management.
In fact one of the one of the components of the company that has undergone a biggest change is fork-lifting factory of the Smarna Gora Holdings. In 1990 the company was characterized by negative trends that are present in the majority of socialist economies. The negative pressure was put on the company by paternalistic management, which emphasized abuse of company assets by the employees and utilization of company property for personal purposes. This factor was negatively influencing the discipline within the company, thus lowering the level of productivity and efficiency of the employees. Another negative aspect of the company was the lack of management and emphasis neither on markets nor on management. The lack of competition and orientation solely on a local market allowed to keep company overstaffed and yet at profit due to demand granted by absence of rival companies. The internal pressures came primarily from a lack of organizational commitment while the external pressure was put by the economy and absence of managerial approaches in work environments in general coupled with paternalistic system. [...]
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