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This case is the first of a two-case series (398-138-1 and 398-139-1). It is primarily a strategy case that chronicles the restructuring and turnaround of one of Hungary''s largest manufacturers during the period from 1992-1997. The case may be used to highlight key legacies of centrally planned economies and to illustrate their manifestations at the firm level. The case also addresses the importance of Western firms in the restructuring and turnaround of formerly state-owned Hungarian companies, and raises the issue of how such firms can transform themselves into viable competitors. This case was sponsored by the Indiana University CIBER Case Collection.