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Case
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Reference no. 699-015-1
Authors: T Mersha (University of Baltimore)
Published in: 1999

Abstract

This case study is concerned with a textile factory in Ethiopia, East Africa, which is struggling to survive in a market-oriented economy after years of operating in a centrally planned socialist system. Under the socialist regime, Bahr Dar Textile Factory (BDTF) produced fabric as specified in the government''s central plan and distributed its outputs to specific customers at a fixed price set by the government. In the 1990s, a privatisation program was initiated by the new Ethiopian government which allowed management autonomy to public enterprises, including BDTF. This also meant that the government will no longer subsidise its operations. BDTF was faced with several problems most of which were inherited from the socialist era, including excess workforce, low productivity and lack of direction that can enable it to launch a successful turnaround and become a viable enterprise in the new competitive environment. This case was sponsored by the Indiana University CIBER Case Collection.
Industry:
Other setting(s):
1994

About

Abstract

This case study is concerned with a textile factory in Ethiopia, East Africa, which is struggling to survive in a market-oriented economy after years of operating in a centrally planned socialist system. Under the socialist regime, Bahr Dar Textile Factory (BDTF) produced fabric as specified in the government''s central plan and distributed its outputs to specific customers at a fixed price set by the government. In the 1990s, a privatisation program was initiated by the new Ethiopian government which allowed management autonomy to public enterprises, including BDTF. This also meant that the government will no longer subsidise its operations. BDTF was faced with several problems most of which were inherited from the socialist era, including excess workforce, low productivity and lack of direction that can enable it to launch a successful turnaround and become a viable enterprise in the new competitive environment. This case was sponsored by the Indiana University CIBER Case Collection.

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Industry:
Other setting(s):
1994

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