The Electrode Gamble (A, B)
The Electrode Gamble (À)
‘You are fired!’ – the executives’ meeting on May 7th 2007 ended up on an almost hysterical note as the CEO of Kislorod Group struck his hand on the table expressing his rage towards a 34-year-old executive of a subsidiary company Kislorod Plus. This man’s unprofessional actions led the company into a dramatic crisis and he had just given an account of his failure. There was much despair in the CEO’s voice for the greatest strategic initiative of the year had been utterly ruined despite the profound investment and a splendid market opportunity. To make matters worse, only an hour was left before a scheduled Board meeting and the CEO had no idea what to say to the people who need neither excuses nor explanations but wait for proofs and action plans.
Kislorod Group
Founded in 1999 Kislorod Group is a local holding company situated in Nizhniy Novgorod. It consists of nine legal entities including the Proprietary Company and the Management Company that owned seven subsidiary business units (Exhibit I).
The group had been formed recently as the result of the restructuring of a single limited liability company. The change started in November 2006 as a part of a broad-scale strategy that presumed aggressive diversified growth in all the major activities of the holding company and was supposed to provide the necessary level of decentralization together with clear budgeting and managerial control.........................
Exhibits
Exhibit I: The Kislorod Group
Exhibit II (a): The Average Monthly Financial Figures of Kislorod Group
Exhibit II (b): Kislorod Plus Records at the Beginning of April 2007
Exhibit III: The Dealing Policy of the Electrode Supplier
Exhibit IV: Estimated Electrode Market Volume in Nizhniy Novgorod Region (2007)
Exhibit V: The Main Players of Electrode Market in Nizhniy Novgorod Region (2007)
Exhibit VI: Kislorod Plus Records at the Beginning of May 2007