Kfar Giladi Quarries: Crisis During an Economic Recession

Description

Kfar Giladi Quarries (KGQ), situated in northern Israel, faces a crisis: the national economy is in recession; the government budget for infrastructure development and construction, on which the company depends, has been reduced; transportation and distribution problems limit its ability to export (or import) cheap raw materials; and there is increasing competition in the industry. The company had recently dissolved its partnership with Malibu Israel Company Ltd., an international company that had given it access to the central part of Israel where most infrastructure and construction jobs and investments are located. The result has been loss in business and a negative cash flow. The case allows students to practise basic tools for strategic planning and permits guidance to companies hesitating over a recovery program, especially during an economic recession; companies in a reorganization phase after separation from a partner; and/or companies that have to shift their management paradigm.

Learning Objective

This case is appropriate for use in business and management training courses, particularly human resources, management and strategy courses. The case allows students to evaluate a company using various models and tools and to develop multidisciplinary decision-making skills. It encourages students to apply complex concepts to a business example and to conceptualize qualitative and quantitative data to develop solutions to intricate problems.

Keywords

business recovery program Corporate restructure human resources Israel Strategic planning