This case is aboutÂ CHANGE MANAGEMENT
PUBLICATION DATE: July 24, 2013 PRODUCT #: IE0003-PDF-ENG
In 1998, Mikel Lizarralde, anticipating the political transformations when Chavez took over Venezuela, recognized he needed to alter his institution’s business model if it were to live in the brand new national scenario impending in store for Venezuela. At that time, the company countered serious labour problems, together with a continuous battle-riddled setting, low productivity, a drain of qualified technical staff, and workers’ dedication that was missing. Lizarralde procured the acceptance of his dad and both GD. He also managed to get Powerven’s top executives to be able to eventually convince the employees and to get the reluctant support of his sibs. Taking a substantial threat, Lizarralde selected Powerven’s bestselling division office to run a pilot evaluation.
This experiment proved successful, while lowering its fixed costs and its sales rapidly rose. Nevertheless, by 2008, Lizarralde began to see with concern, several clouds building up in the horizon of Powerven. Cooperatives were not as cohesive as they ought to have.Powerven When It Is Imperative to Change Case Solution
Also, some signals shown that cooperatives were supported by Chavez’s government as in precedent. In 2008, Lizarralde was somewhat suspicious and exhausted about the future of his firm. He was uncertain as to the most effective course to take, although he understood he needed to change gears once again. He wondered whether revamp the organizations business model, he should attempt to answer the issues plaguing cooperatives or just walk away. The case set of IESA.