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This is a Czechoslovakian version. This case is the outcome of a joint case research/writing effort by teams of faculty members at all four universities underwritten by the United States Agency for International Development and led by Iowa State University. The case describes the situation at a typical agricultural co-operative in South Moravia in the Czech Republic in early 1993 - a time when the Czech Republic is in the midst of transforming itself from a socialistic centrally planned to a capitalistic free market economy. The case describes the February 11, 1993 meeting of the Co-operative's Board of Directors. The Co-operative has lost 1,567 thousand crowns in 1992. All units showed losses. The Board realised that unless they made essential changes in the Co-operative's management, it would lose 5 million crowns by the end of 1993.