Textiles del Hogar S.L.

Textiles del Hogar, S.L. is a Catalan company with more than half a century of history, which, from being a very profitable business, began to arouse serious doubts about its viability, as a consequence of the decline in the European textile sector. As well as this, until the arrival of the Quesadas, the company had been poorly managed. On taking over, Ramón and Jorge Quesada tried, without success, to find a definitive solution for the business. After several failed attempts, they decided to refloat the company and keep it going on the basis of modest improvements that would make the business pay for itself, although without generating profits for the shareholders. Nevertheless, on analyzing the serious difficulties faced in the day-to-day running of the company, and motivated by reasonable doubts about its future viability, the Quesadas considered closing the company down. In order to take this decision, Ramón and Jorge weighed up not just the economic aspects, but also the social consequences of such a decision, and how to deal with the considerable number of people related with the company, whether as workers, shareholders or managers.
Collection: IESE (España)
Ref: ASN-40-E
Format: PDF
Number of pages: 13
Publication Date: Mar 28, 2006
Language: English, Spanish
Review date: Aug 1, 2006

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Description

Textiles del Hogar, S.L. is a Catalan company with more than half a century of history, which, from being a very profitable business, began to arouse serious doubts about its viability, as a consequence of the decline in the European textile sector. As well as this, until the arrival of the Quesadas, the company had been poorly managed. On taking over, Ramón and Jorge Quesada tried, without success, to find a definitive solution for the business. After several failed attempts, they decided to refloat the company and keep it going on the basis of modest improvements that would make the business pay for itself, although without generating profits for the shareholders. Nevertheless, on analyzing the serious difficulties faced in the day-to-day running of the company, and motivated by reasonable doubts about its future viability, the Quesadas considered closing the company down. In order to take this decision, Ramón and Jorge weighed up not just the economic aspects, but also the social consequences of such a decision, and how to deal with the considerable number of people related with the company, whether as workers, shareholders or managers.
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Year: 2006
Geographic Setting: España

Learning Objective

The class can be divided into two parts: the first should focus on the past and the second on the future. In the first part, an analysis can be made of the company, the factors that have brought it to its current situation, the attempts to improve its viability, and the motives that led the Quesadas to take charge. In the second part of the session, a discussion can be held about the future viability of the business, and an analysis of the decision as to whether to keep it running or to shut it down.

Textiles del Hogar S.L.

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"Textiles del Hogar S.L."