Product details

By continuing to use our site you consent to the use of cookies as described in our privacy policy unless you have disabled them.
You can change your cookie settings at any time but parts of our site will not function correctly without them.
Case
-
Reference no. 802-042-1
Subject category: Entrepreneurship
Published by: Babson College
Originally published in: 2002
Version: 11.08.02

Abstract

With the fall of the Soviet Union in 1991, there appeared to be tremendous opportunities for American businesses. There were deals to be made on both the export and import side of business with the newly liberated former soviet republics. Scott Berggren, a 32-year-old entrepreneur, after a series of unsuccessful international ventures, begins to import aluminium from Russia to sell to several major US companies including General Motors. Lower labour costs etc, appear to provide Scott with a major opportunity to beat current market prices. However, political and economic instability including currency fluctuations soon place the young owner in a perilous position. He must decide whether to invest more of his own money in the old Russian smelting companies, which were formerly state-run, or face eventual unsustainable losses due to the unpredictability of his suppliers. A teaching note supplement ''802-042-9'' is available to accompany the teaching note.
Location:
Size:
Early growth
Other setting(s):
1993-1997

About

Abstract

With the fall of the Soviet Union in 1991, there appeared to be tremendous opportunities for American businesses. There were deals to be made on both the export and import side of business with the newly liberated former soviet republics. Scott Berggren, a 32-year-old entrepreneur, after a series of unsuccessful international ventures, begins to import aluminium from Russia to sell to several major US companies including General Motors. Lower labour costs etc, appear to provide Scott with a major opportunity to beat current market prices. However, political and economic instability including currency fluctuations soon place the young owner in a perilous position. He must decide whether to invest more of his own money in the old Russian smelting companies, which were formerly state-run, or face eventual unsustainable losses due to the unpredictability of his suppliers. A teaching note supplement ''802-042-9'' is available to accompany the teaching note.

Settings

Location:
Size:
Early growth
Other setting(s):
1993-1997

Related