Corporate Restructuring of Gujarat State Road Transport Corporation Harvard Case Solution & Analysis

This case describes the restructuring initiatives undertaken by Gujarat State Road Transport Corporation (GSRTC) and obstacles faced by the managing director. As a consequence of the partial deregulation of the industry, GSRTC face mounting losses in connection with the activities of the stage carriage and contract carriage operators from the private sector. The financial condition of the corporation was also compromised by the tax policy of the state and the restrictions on the acquisition of labor and capital items. Corporation faced with a situation where he had a fleet of older, fuel inefficient buses are prone to accidents, with corresponding depletion of resources, such as bus drivers. To break out of the vicious cycle down, the managing director has taken a number of steps to strengthen the corporation. His initiatives for operating profit, and then the net profit has been interpreted in different ways unions. They took a belligerent stand for revision of wages and threatened service disruption. Violations of the basic services guaranteed by the state eventually led to the intervention of the Chief Minister of the state in favor of a revision of wages. Additional burden salary projections made possible to turn to go awry. Given the added constraints and resource stretched position as managing director to re-initiate the changes and restructuring of the organization? "Hide
on Shubhabrata Basu Source: Richard Ivey School of Business Foundation 17 pages. Publication Date: January 26, 2012. Prod. #: W11642-PDF-ENG

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