Sh A.S. Case Study

Introduction:

SH a.s. is a Czechoslovakia company which was formed in 1925, nationalized in 1948 and then later privatized after dividing it into two companies in 1992. SH a.s. was initially formed to supply component parts to the parent company but after 4yrs they started manufacturing lubricating pumps and injectors of their own. After 10 years they had 120 employees and started manufacturing bearings, railroad car couplings, among other railroad related components.   During the World War 2, they manufactured hydraulic valves for military applications including submarines. In 1948, the company nationalized, focused on railroad applications only and the name of the company was also changed to ZTS Juranovy Zavody Brno.
During the communism period many Czechoslovakia companies which were leading manufacturers or were up to date on manufacturing products and the way they manufacture products were either outdated or were left so behind that they were nearly out of the competition. ZTS Juranovy Zavody Brno was lucky in the way that it expanded quiet extra ordinarily along with this, it had monopoly in the products it manufactures.
In 1992, a major transformation took place and ZTS Juranovy Zavody privatized under Czechoslovakia privatization program. The company was divided into two parts. One was sold to Poclain Hydraulics, the French Licensor of ZTS Juranovy Zavody. This division of ZTS was responsible for the manufacturing of those parts, which was part of the agreement in 1987. The other part of ZTS was involved in manufacturing of all kinds of lubrication equipment and technology for the commercial and military markets was privatized to BSD s.r.o, a Czechoslovakia firm, representing group of local investors. This part changed its name to SH a.s.
After privatization, many firms were unable to cope up the difficulties they faced but few companies flourished after getting heavy investments in 10yrs. But nearly all organizations lacked in trained officials and... [continues]

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