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Published by: International Institute for Management Development (IMD)
Originally published in: 2015
Version: 03.06.2015

Abstract

Trading in Mohammad Al-Mojil (MMG)'s shares was suspended in July 2012. The company did not fulfil the losses triggered mandatory reporting rules. In a related case, MMG’s auditor Deloitt & Touche was suspended by the Capital Market Authority (CMA), to be effective beginning 1 June 2015. MMG went public in 2008 after years of phenomenal growth. The company pursued an aggressive growth strategy by out-pricing competitors. However, the strategy failed miserably when additional costs eroded its profit. The company lost significance amount of money which led to constant management and board reshuffle. A number of MMG board members and executives might be prosecuted over possible violations of company laws.
Size:
Revenue USD192.7 Million (SAR722.6 Million) in 2014
Other setting(s):
2008-2015

About

Abstract

Trading in Mohammad Al-Mojil (MMG)'s shares was suspended in July 2012. The company did not fulfil the losses triggered mandatory reporting rules. In a related case, MMG’s auditor Deloitt & Touche was suspended by the Capital Market Authority (CMA), to be effective beginning 1 June 2015. MMG went public in 2008 after years of phenomenal growth. The company pursued an aggressive growth strategy by out-pricing competitors. However, the strategy failed miserably when additional costs eroded its profit. The company lost significance amount of money which led to constant management and board reshuffle. A number of MMG board members and executives might be prosecuted over possible violations of company laws.

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Size:
Revenue USD192.7 Million (SAR722.6 Million) in 2014
Other setting(s):
2008-2015

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