Ivey Publishing
Headstart Industries Ltd.: Corporate Culture and Strategy
Product Number:
9B16M181
Publication Date:
10/31/2016
Revised Date:
10/31/2016
Length:
7 pages (7 pages of text)
Product Type:
Case (Field)
Source:
Ivey/ISB
In August 2011, the newly hired chief executive officer of the Indian firm Headstart Industries Ltd. (HIL) faced a dilemma over whether or not to allot funds for a new project of a business unit that had poor performance over several years and had affected the company's overall profitability. The chief executive officer was faced with a tough choice between acting against the dominant culture of HIL by refusing to fund the new project or displeasing the board members who had hired him to bring about organizational change. He was well aware of the board members’ belief that the division in question was a burden on HIL's resources and should be closed down. Should he appease the culture, or should he accept the risks and approve the funding?
Learning Objective:
This case is ideal for use in general management and strategy class at the undergraduate and graduate levels. Using the case, students will develop an understanding of the following topics:
  • Corporations as internal markets versus cooperative systems
  • The relationship between organizational culture and the concrete practice of resource allocation
  • The dynamics of resource allocations in multi-business firms
  • The challenges of cultural change in organizations
  • The dynamics of strategic leadership and corporate governance
Issues:
Disciplines:
General Management/Strategy,  Entrepreneurship,  International
Industries:
Other Services
Setting:
India, 2011
Intended Audience:
Undergraduate/MBA
Price:
$4.25 CAD / $4.25 USD Printed Copy
$3.75 CAD / $3.75 USD Permissions
$3.75 CAD / $3.75 USD Digital Download
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