Pibrex Russia
Victoria Management School
MMBA 558 International Business
Assignment 4: Managing Pibrex (A): New Crisis, Old Grievances
Student Name: Deane Nicholls
Student ID: 300 181 563
Course Coordinator: Val Lindsay
Due Date: Monday 11th April
Executive Summary:
Pibrex is one of the world’s largest developers of petrochemical polymers for the plastics market. The company has purchased a plant in Russia and after three years of serious operating losses it has appointed a new general manager of the plant. Then plant lacks a strong organisational culture; communications within and between departments are poor; there is inequity between in wages, working conditions and training and problems with motivation and employees is prevalent. Pibrex International is losing interest in the Russian operation and two sub-cultures exist within the Pibrex Russian organisation. The new General Manager, Elena Michasilova must develop an action plan that can turn the operations around to breakeven point by the year 2000 at minimal cost to the company.
This report outlines to Elena Michailova considers both the external environmental (Political, economicsocial and organisation factors affecting Pibrex Russia and analyses why the plants are underperforming in a difficult economic environment and outlines four different unique strategies retrenchment, price leadership, quality leadership and export orientation) makes recommendations that Elena Michailova can implement to overcome the numerous organizational and financial challenges that the company faces. It establishes a viable export orientate strategy and industry leading restructuring programme, called Challenge 2000 that Elena can quickly implement to overcome these challenges she faces managing Pibrex Russia at minimal cost to the company. Implementation of both will lead Pibrex back to profitability by the year 2000
This report illustrates what the management team has done to begin a
MMBA 558 International Business
Assignment 4: Managing Pibrex (A): New Crisis, Old Grievances
Student Name: Deane Nicholls
Student ID: 300 181 563
Course Coordinator: Val Lindsay
Due Date: Monday 11th April
Executive Summary:
Pibrex is one of the world’s largest developers of petrochemical polymers for the plastics market. The company has purchased a plant in Russia and after three years of serious operating losses it has appointed a new general manager of the plant. Then plant lacks a strong organisational culture; communications within and between departments are poor; there is inequity between in wages, working conditions and training and problems with motivation and employees is prevalent. Pibrex International is losing interest in the Russian operation and two sub-cultures exist within the Pibrex Russian organisation. The new General Manager, Elena Michasilova must develop an action plan that can turn the operations around to breakeven point by the year 2000 at minimal cost to the company.
This report outlines to Elena Michailova considers both the external environmental (Political, economicsocial and organisation factors affecting Pibrex Russia and analyses why the plants are underperforming in a difficult economic environment and outlines four different unique strategies retrenchment, price leadership, quality leadership and export orientation) makes recommendations that Elena Michailova can implement to overcome the numerous organizational and financial challenges that the company faces. It establishes a viable export orientate strategy and industry leading restructuring programme, called Challenge 2000 that Elena can quickly implement to overcome these challenges she faces managing Pibrex Russia at minimal cost to the company. Implementation of both will lead Pibrex back to profitability by the year 2000
This report illustrates what the management team has done to begin a