In 1998, Mikel Lizarralde, foreseeing the political changes lying in store for Venezuela when Chavez took over Venezuela, recognized he needed to change his company's business model if it were to endure in the brand new national scenario. At that time, the company faced acute job problems, including a continuous conflict-riddled feeling, low productivity, a drain of qualified technical staff, and workers' dedication that was lacking. With the support of a consultant, Lizarralde developed a change program that hinged on laying off workers to establish cooperatives that would later supply their services on an outsourcing scheme to Powerven. Lizarralde procured the acceptance of his father and both GD. He also managed to get the reluctant support of his siblings in order to finally convince the workers and to persuade Powerven's top executives. Taking a substantial danger, Lizarralde chose Powerven's bestselling branch office to run a pilot evaluation.
This experiment proved successful, while lowering its fixed costs, and its sales rapidly increased. However, by 2008, Lizarralde began to discover with concern several clouds building up in Powerven's horizon. Cooperatives were not as cohesive as they should have. Furthermore, some signs shown that the government of Chavez supported cooperatives as in the past. In 2008, Lizarralde was somewhat doubtful and exhausted about his firm's future. He was uncertain as to the top course to take, although he understood he needed to change gears once again. He wondered whether he should try to solve the difficulties plaguing cooperatives, revamp the company's business model or simply walk away. The case collection of IESA.
Powerven When It Is Imperative to Change Case Study Solution
PUBLICATION DATE: July 24, 2013 PRODUCT #: IE0003-PDF-ENG
This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE
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