Ireka Construction Berhad Harvard Case Solution & Analysis

Ireka Construction Berhad started operations as a family owned business of small scale and with the passage of time changed itself into a large public company. This transition was managed quite effectively as it can be seen in the progress the company has made after transition and surviving in an intense economic situation. The company used the expansion opportunity effectively and changed their image from a subcontractor to a registered government contractor. This expansion and change in the image indicates that the company managed the transition process effectively, which also exhibited in their performance as well after transition. A major reason that explains that the company has managed the transition process quite effectively was the use of their management experience. The management played a vital role for the company and helped in gaining contracts from governments that helped the company to become a registered government contractor from a subcontractor.

The company has moved smoothly with its potential in its transition process as they were able to move ahead from contracts related to road works and focused on building infrastructures that eventually became their strength. This shift gives a good reason why the company has been so successful in their transition. Every company has to face many challenges during the transition from a small firm to become a large enterprise. Ireka also suffered many challenges, but the company managed and effectively utilized their resources to overcome every hurdle; this is a proof that the transition was managed effectively. One of the major difficulties that occurred during the transition was the economic recession. During the recession, it becomes quite difficult for companies to sustain their current position and image, and in order to achieve profits, companies prefer cost cutting methods.

Layoff of employees is one major practice that is followed in every industry as a source of cutting cost. The company’s patient attitude during the recession is another important reason due to which the company survived the transition process smoothly and effectively. During this period, the company opted for keeping their employees and focused on encouraging them in order to gain employee loyalty. These were some bold steps and attributed as risky decisions as this could have put the company in real deficits and debts. These measures of the company paid off as the company was able to create a positive image for itself in the market and among employees as well.

The company was able to gain major contracts and was given priority among others by the government as well as the company gained the status of class “A” contractor. This status gave the company a strong presence in the domestic market and helped it in attracting capital to initiate major projects. As explained above, the company witnessed tremendous success after transforming into a large public company which is why the transition of the company can be attributed as smooth and it can be stated that the company managed and handled the process and stages involved in it quite efficiently. The remarkable performance of the company is a major proof to justify this statement. On the other hand, the diversification strategy that the company adapted after transition also played a significant role in the company’s overall success. The company’s diversification approach is quite effective as the company has managed to improve its image during critical time periods.

The transition process must have been difficult as the characteristic of Chinese family businesses plays a vital role in putting barriers in bringing a change. But, on the other hand, there are some vital positive characteristics that can be taken as key points that can help in bringing a change. Chinese family businesses are mostly owned by families, and the contribution of family members is immense in management decisions. Family members have a strong hold on key management positions in Chinese business that sometimes prove to be This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.a major barrier in transforming into large enterprises. A belief exists in the mind of the Chinese entrepreneurs that personal management is a key contributor towards the success of the company. Organizations operating in kin and ethnic relations are among the major believers in the concept of personally managing and involving family members instead of outsiders in the family (Carney, 1998)..........................

This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.

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