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

This case scenario depicts the restructuring initiatives that are employed at Gujarat State Road Transport Corporation and the restraints confronted by the managing director. As a result of the partial deregulation that was sectorial, GSRTC confronted contract buggy operators from the private sector in addition to building losses due to the activities of stage transportation. The fiscal health of the corporation was further endangered by the state's taxation policies and restrictions on acquisition of work force and capital items. The corporation confronted a scenario where it had a fleet of over aged, fuel buses that were wasteful prone to breakdowns, coupled with depleting resources that were important, for example bus drivers. The managing director began a succession of measures targeted at revitalizing the corporation to break out of the vicious downward cycle. His initiatives to get a net profit, an operating profit and, then were interpreted by trade unions. They took a rebellious stand for the wage reconsideration and endangered service disturbance.

The disruption of an essential service guaranteed by the state finally led to intervention by the state's chief minister in favour of wage revision. The additional wage weight made the projections for a possible reversion depart. Given the additional constraints plus a resource place that is stretched, how would the managing director re-initiate change and restructure the organization?

PUBLICATION DATE: January 26, 2012 PRODUCT #: W11642-HCB-ENG

This is just an excerpt. This case is about STRATEGY & EXECUTION

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