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. 397-107-1
Authors: Subrata Kumar Mitra (Institute of Rural Management Anand); Himanshu Tambe (Independent Author); Deepak K Sinha (Indian Institute of Management Bangalore (IIMB))
Published in: 1997

Abstract

This case describes the herculean efforts made by the 15,000-odd employees to revive this steel giant. It begins by presenting the background under which India''s most modern steel plant was established, the economic and political hurdles it had to overcome, and the steps involved in completing the project. The case then focuses on how RINL management under the leadership of their CMD, J Mehra, devised strategies that helped the company survive. In particular, the case focusses on his commitment to the company in the face of apparently insurmountable obstacles, his constant communication and search for new ideas, and his frequent exhortations to executives to stretch - attributes that have by now been internalized as the dominant management style in RINL.This is a good case to illustrate how changes in the external environment of business severely affect strategies developed by incumbent firms. It traces the attempts at turning around a new company in a mature industry that was exposed to the vicissitudes of a changed economic environment. It goes on to examine the strategies and tactics that were devised in response to this environment, in contravention of established industry practice. It presents a good example of how Indian PSUs (public sector units) grappled with competition in the liberalised economic environment. The case brings out the impact of strategy on structural options generated and chosen and how systems have to be in consonance with the structure to induce the desired behavioural changes. The model of organisational transformation that this case demonstrates is in sharp contrast to the Euro-American model of the ''slash and burn'' type of restructuring seen in the last 15 years. By eschewing downsizing through headcount reduction, the results may be slow in coming but they are far more acceptable to various stakeholders. It has its value as providing an ''Indian'' solution that takes into account the local culture and value.
Industry:
Size:
Over 15,000 employees, turnover USD800 million
Other setting(s):
1993-1996

About

Abstract

This case describes the herculean efforts made by the 15,000-odd employees to revive this steel giant. It begins by presenting the background under which India''s most modern steel plant was established, the economic and political hurdles it had to overcome, and the steps involved in completing the project. The case then focuses on how RINL management under the leadership of their CMD, J Mehra, devised strategies that helped the company survive. In particular, the case focusses on his commitment to the company in the face of apparently insurmountable obstacles, his constant communication and search for new ideas, and his frequent exhortations to executives to stretch - attributes that have by now been internalized as the dominant management style in RINL.This is a good case to illustrate how changes in the external environment of business severely affect strategies developed by incumbent firms. It traces the attempts at turning around a new company in a mature industry that was exposed to the vicissitudes of a changed economic environment. It goes on to examine the strategies and tactics that were devised in response to this environment, in contravention of established industry practice. It presents a good example of how Indian PSUs (public sector units) grappled with competition in the liberalised economic environment. The case brings out the impact of strategy on structural options generated and chosen and how systems have to be in consonance with the structure to induce the desired behavioural changes. The model of organisational transformation that this case demonstrates is in sharp contrast to the Euro-American model of the ''slash and burn'' type of restructuring seen in the last 15 years. By eschewing downsizing through headcount reduction, the results may be slow in coming but they are far more acceptable to various stakeholders. It has its value as providing an ''Indian'' solution that takes into account the local culture and value.

Settings

Industry:
Size:
Over 15,000 employees, turnover USD800 million
Other setting(s):
1993-1996

Related