Following the Asian financial crisis, the General Manager of a diversified Malaysian Group finds his company in a dramatic financial situation. Yesterday very profitable, today he must take surgical measures if the company is to survive. In deciding what to do, he considers three alternatives the first was to create a task force made up of a carefully selected group of managers that would come up with an action plan. However, this move was likely to involve closing several ventures. The second was to call in McKinsey for a thorough re-engineering and downsizing exercise. The final alternative, under pressure from the Chairman, was to close a large number of plants in a ruthless fashion, which would please the Board.
The case is very instrumental in exploring how top management can approach the taking of courageous decision in times of crisis. Trade-offs can be discussed within the Malaysian context. The case enables participants to explore how to implement the process of change, focussing particularly on the first step.
- ASIAN BUSINESS METHODS
- CURRENCY CRISIS
- US BUSINESS METHODS