Keystone Excavating Limited: Preserving a Legacy
(6 pages of text)
In June 2015, a new president and chief executive officer, Sandip Lalli, was hired by the board of directors of Keystone Excavating Limited (Keystone) to turn the company around and increase its value. In its 35 years of operations, Keystone had failed to articulate a purpose, and for the past five years it had been in double-digit decline. The economic downturn in Alberta from 2014 to 2016 had made the situation dire, and by September 2016 Lalli was going to recommend closing the company. But how should she do this? How should she tell the shareholders of this family-owned business that things were unlikely to improve and that there would be another challenge ahead? How could Keystone cease operations while retaining its legacy?
This case is can be used in an undergraduate or graduate course on entrepreneurship valuation, strategy, purpose-driven organizations, or construction management. Through completion of the case, students have the opportunity to do the following:
- Understand the challenges of a commodity-type business.
- Consider the impact of a purpose-driven strategy on business decisions.
- Conduct a SWOT (strengths, weaknesses, opportunities, and threats) analysis to gain increased understanding of the impact that internal and external factors have on a company.
- Understand the strategic options available for Keystone, and evaluate each using the case and exhibits.
- Interpret a ratio analysis for the purpose of making a recommendation.
Canada, Small, 2016
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