Abstract

The case illustrates the strategic management decision situation in the company HIL,headed by Baily, who was appointed after two consecutive losses the water plant SBU made, which made the investors appoint Baily to rectify the situation. The company operates throughfourdivisions, namely software technology, online marketing, educational publishing and Water pump manufacturing. The project manager Vera, led the water pump project successfully till 1990’s, but the position of Vera along withhis team is in jeopardy due to two consecutiveprojectfailures. Since the shareholders and investors have appointed Baily to take down the Water pump division, he also has to see if the new project which Vera has designed can bring back the profitability and thus has to decide between the shareholder's demand and the business proposal by Nakul Vera.

The deadlock presented in making the decision in favor of one party may have to bedefended through strong evidence depicted on the balance sheet.

Keywords: Corporate strategy, Culture, Leadership, Strategic Management

Corporate Culture And Strategy

Headstart Industries limited (HIL) started its operations back in 1990’s, with the initial vision of catering different markets with different products by inculcating technologyand Innovation.The company operated in three divisionsnamelysoftware development, online marketing and water pump manufacturing/designing. For thelast few years, the company performedoutstandingly with thetremendous growth of market share and sales.

Corporate Culture And Strategy Harvard Case Solution & Analysis

The project water pump was initiated by Vera, the project head, along with his team. The team worked tirelessly to bring the SBU to the top star product list of the company, when all of the sudden, the project faced two setbacks in 2000.The incident made the board directors appoint a new CEO, Baily, who could rectify the wrongdecision and bring back the profitability to the company. In doing so, it has been expected from the CEO to cut off the WATER PUMP SBU from company’s portfolio as it wasregarded asthe dog product.

Baily knew the undisturbed, consistenthard work of Vera and his team, and his belief in the new project, yet he also understood the stance of the board of directors who have appointed Bailey with the vision of closing the SBU.So a daily deadlock has been developed to choose one option while supporting it with strongevidence and should be acceptedby both parties. The proposal was also required to fulfill the responsibility and demand of his Role as a CEO of the company.

External Environment Analysis

Background of the Company

Headstart Industries Ltd, is a top multi-business corporation thatoperates under eight SBUS.The. company was founded by Ravi Gavin, while the project manager of water pump businesses was headed by Mukul Vera.

Among those eight Sbu’s, the company performed tremendously in Educational publication, software development, online marketing and Water pumpbusinesses. These Four SBUs contributed immensely in making the company profitable.

The company incorporated latest innovation and technology to cater he markets and changing paradigm of the market forces. Thecompany drew its focus to online marketing due to tremendous rise of ecommerce and online buying in Indian Market. The company started its operations in MadhyaPradesh, the second largest state of India, to cater the market through innovative means.....................

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