Challenges of Growth and Continuity in a Co-operative Organization
This caselet depicts the evolution of a textile manufacturing unit in the co-operative sector. Established way back in September 1981, Assam Polyester Co-operative Society Limited (APOL) commissioned production of yarn with a capacity of 6000 kg per day in 1988. It’s primary motto was to generate rural entrepreneurship and was registered as a co-operative society. APOL was created out of an initiative of the state government to boost textile industry in Assam. A few engineering graduates, with their mentor, a fiber technology expert, came together to create this textile unit. Initially it was an integrated textile unit engaged in yarn production, dyeing and garment making. In a few years, it expanded its activities to include retailing of its garments. APOL fabrics became popular and gained market acceptance amongst the middle income segment. However, the good days did not last long. Wrought by internal problems and external challenges, the organization saw itself in a crisis situation after being in operation for a decade and a half. The revival of the unit after being closed down for 3 years came about with the support of government machinery.
The first part of the case reviews APOL’s efforts to become a successful player in the local textile industry. The case goes on to identify the challenges met during its journey prior to closure. The second part of the case highlights the utilization of the resources viz., physical, financial and human resource. Problem areas in its various functions have been focused upon.
This case is appropriate for strategy course. Discussion can be focused on identification of strengths, weaknesses, opportunities and threats for the unit, turnaround strategies for continuity and growth of the organization. The case can also be discussed in a session devoted to entrepreneurship. Specifically, the objectives of this caselet are to:
- • Highlight the factors that made an enterprise go through a decline phase after experiencing a growth phase
- • Discuss how the internal resources of an organization can be used to turnaround an organization
- • Analyze organization’s internal environment as well as external environment to achieve a fit between the two
Case Positioning and Setting
This case study is relevant for MBA or Executive MBA programs and can be used for Strategic Management classes. It deals with strategic issues in production, HR and marketing areas.
- I. What factors are responsible for suspension of operations of the organization in 2003?
- II. Assess the post-revival performance of APOL.
- III. Conduct a SWOT analysis for the organization.
- IV. ...........