Question One
My organization is facing multiple reasons for changes that consist of hyper competition business, market decline, growth, environmental, geopolitical along with integration and collaboration pressures.
Business case:
AAC Company used to be a market leader in foundries and heat treatment works in Egypt since inception up till few years ago, the company was mainly targeting the cement plants and other heavy industries relying on being the largest player in the market due to its production capacity and knows how.
However, starting 2005 the co. was facing new entrants with relatively small size, in parallel with the entrance of multinational cement players through the acquisition of public cement factories in align with the privatization program.
At the beginning the new entrants were targeting adjacent markets and the co, showed no immediate response, in a very short time the co was and is still facing a fierce competition in the segment of cement producers and fertilizers especially in products like refractory and grinding media due to the high turnover nature of both products.
Geopolitical realignment of European and other developed foundries producers due to the Kyoto protocol which obliged large polluted industries such as cement, foundries to move their production plants out of members' countries resulted in declining AAC market share dramatically as Egypt and Mena region was the target of those new entrants.
To be able to survive and to compete AAC executives decided to change the co. strategy to focus on growth either organic or through selective acquisitions and or mergers, cost efficiency through integration and collaboration of its production units recently acquired in the mena region and finally by diversifying its products through starting to produce other foundries like automotive components, refrigerators and air-conditioning metal components.
As a manager in AAC co, my optimum target was enhance organizational...