Describes the evolution of the German government's approach to restructuring the East German firms. Three organizations and their interactions are considered: 1) Treuhand, privatization agency, Germany, 2) KG Plaschna management, private organizations, and funded by the Treuhand is designed to reduce the likelihood of inefficient state-owned enterprises, and 3) VEM, a manufacturer of electric motors, which was once Works great and is now the biggest firms KG Management Plaschna. Special attention is paid KG Plaschna management organization established to address the problems with the state enterprises, indicating the exact trade-off between multiple objectives and constrains the government from active involvement in decision-making. "Hide
by Karen H. Wruck, Alexander Dyck Source: Harvard Business School 26 pages. Publication Date: March 15, 1995. Prod. #: 795120-PDF-ENG
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