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This is the first of a two-case series (602-002-1 and 602-003-1). From 1975 to 1984 the Gamble Company had a virtual monopoly, both domestic and abroad, over the exchange of livestock and the sale of meat. All the decisions of the marketing, finance, and personnel departments of the company were centralised. In 1983, the country had an acute international debt problem and the International Development Association (IDA) had requested that the liberalisation of trade, including exports and imports, be initiated, along with the floating of the currency and the adoption of market-determined interest rates and prices. As the business environment changed from being monopolistic to being very competitive, the company lost control of the market due to its inflexibility to adapt to the changing consumer environment. Given this situation, a lack of funds caused the Gamble Company to neglect their productive capacity. The company''s sales dwindled even though at times it sold at variable costs. Running short of cash became a frequent phenomenon. In many cases the cash given by the government barely covered salaries and some debts and left Gamble with no working capital to buy livestock. Therefore, in some months the production of the company reached the zero point. This case was sponsored by the Indiana University CIBER Case Collection.