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Essay / Research Paper Abstract
This 7-page paper discusses the rise and fall of Austrian construction company Maculan, factors as to why it collapsed, and how those factors could have been avoided. Bibliography lists 1 source.
Page Count:
7 pages (~225 words per page)
File: AS43_MTmacucase.doc
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Unformatted sample text from the term paper:
the weight of its own expansions, misunderstandings, and lack of preparation for any kind of change. In theory, Maculans executives had the
right idea: Focus on growth through acquisition and vertical integration, take advantage of building opportunities as the communist countries were collapsing and conduct a great deal of international work through
special-purpose entities (partnerships with other Austrian companies). However, as in many cases of this type, a variety of factors take place that prevent a companys growth and ultimately lead to
its collapse. Maculan Group is a textbook case of how failing to anticipate these factors led to its doom. Following are three key mistakes Maculan Group made that ultimately led
to its collapse. Too-fast growth. Rapid growth without preparation has done in many companies. Though acquisitions and joint ventures are great
ways to spur growth, if a company isnt prepared with the right technology, personnel or plan, that growth can become a huge problem.
This is what happened to Maculan. The path of the company was steady and conservative for the majority of its existence - until 1989. From that point, to 1993, the
company tripled its number of employees and quadrupled its gross revenue. It increased these things through vertical integration - and through acquisition of foreign firms. The problem, however, is that
it wasnt prepared, from a management perspective, to oversee those foreign firms. The case study points out that management at home base in
Austria was reluctant to pull up stakes and relocate to East Germany and Russia, for a variety of reasons. There were huge cultural differences. The housing and educational systems werent
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