The United Rentals (URI), in the month of December 1997 went public on the NYSE. Ten years later, during the peak of the economic crisis, the business presentation was diminishing. United Rentals was still under pressure to emerge from this mayhem and had experienced its share of issues in the earlier years. In the spring of 2008, the recession had decimated construction equipment rental, the firm's core business. The economic decline had impacted the company's sales and operating result and resulted in a significant decrease in North American building and industrial actions. The stock of the company swiftly dropped to $3 in March 2009 in late 2007 from the mid-$30 range. The Board was confronted with the litigation in Delaware, the unsuccessful merger with Cerberus, as well as the resignation of the creator and chairman, management succession problems.
The Board was responsible for managing the transformation in quite a lot of senior management and board positions which became gradually more challenging due to the chaos and poor performance of the company. Recruiting and keeping talent in senior management and also the board was necessary to the accomplishment of the organization, which relied for powerful performance on their folks. In addition the company's total indebtedness was approximately $3.3 billion, including $146 million of subordinated convertible debenture. The organization's considerable indebtedness had the potential to have objectionable impacts in quite a lot of ways, including: increase their exposure to adverse economic, business or competitive developments; involve the business to devote a significant portion of their income to debt service, reduce the resources available for other purposes; limit their ability to obtain additional funding; and decrease their profitability or income. And also the business was still dealing with multiple purported class action and derivative lawsuits that had been filed against it.
United Rentals (A) Case Study Solution
PUBLICATION DATE: September 25, 2013 PRODUCT #: 414043-HCB-ENG
This is just an excerpt. This case is about ORGANIZATIONAL DEVELOPMENT
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