Zetor Tractors (A): From Central Planning to Market Economy

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Case from journal

Reference no. NAC1507

Subject category: Strategy and General Management

Authors: Karen L Newman (McDonough School of Business, Georgetown University); Stanley Nollen (McDonough School of Business, Georgetown University)

Published by: NACRA - North American Case Research Association

Published in: "The Case Research Journal", 1995

Length: 13 pages

Data source: Field research

Topics: Business policy / strategy; Environmental issues; International business; Organizational design

Share a link: https://casecent.re/p/78611

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Abstract

This is the first of a two-case series (NAC1507 and NAC1508). After the ''Velvet Revolution'', the Czech Republic faced the task of privatizing its state-owned enterprises, and the companies faced the task of coping with an environment where customers decided what to buy. Zetor, a Czech manufacturer of tractors and bearings, has lost half its sales, its biggest export customer, its distribution channels, and its financing. The managing director reorganizes and forms an alliance with John Deere, but it is uncertain whether Zetor will survive as an independent company.