Subject category:
Strategy and General Management
Published by:
International Institute for Management Development (IMD)
Version: 18.11.2003
Length: 6 pages
Data source: Field research
Share a link:
https://casecent.re/p/11915
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Abstract
This case follows the evolution of the relationship between Whirlpool Corporation and Tatramat, a Slovak manufacturer of washing machines. (See 'Whirlpool Corporation: Entering Slovakia, for a description of events prior to Fall 1991). In Spring 1992, the two companies began to implement an agreement to start a joint venture, but soon thereafter the country was split in two - with the new company located in Slovakia, the poorer of the two economies. By the end of 1993 the output of the joint venture was significantly below the original expectations and the company was operating at a significant loss. The management of Whirlpool was faced with a choice: increase the equity investment in the joint venture as anticipated in the original business plan, wait a little longer before making a decision, or cut its loses and withdraw. A video 'Whirlpool Tatramat' is available to accompany the case.
About
Abstract
This case follows the evolution of the relationship between Whirlpool Corporation and Tatramat, a Slovak manufacturer of washing machines. (See 'Whirlpool Corporation: Entering Slovakia, for a description of events prior to Fall 1991). In Spring 1992, the two companies began to implement an agreement to start a joint venture, but soon thereafter the country was split in two - with the new company located in Slovakia, the poorer of the two economies. By the end of 1993 the output of the joint venture was significantly below the original expectations and the company was operating at a significant loss. The management of Whirlpool was faced with a choice: increase the equity investment in the joint venture as anticipated in the original business plan, wait a little longer before making a decision, or cut its loses and withdraw. A video 'Whirlpool Tatramat' is available to accompany the case.