個案資料

This case describes the restructuring initiatives undertaken at Gujarat State Road Transport Corporation (GSRTC) in India and the challenges faced by the managing director. As a consequence of partial deregulation, GSRTC faced mounting losses due to the activities of stage carriage and contract carriage operators from the private sector. The financial health of the corporation was further compromised by the state of Gujarat’s taxation policies and restrictions. The corporation faced a situation where it had a fleet of dated, fuel-inefficient buses prone to breakdowns, coupled with dwindling resources like bus drivers. <br><br>To break out of the vicious cycle, the managing director initiated a series of steps aimed at revitalizing GSRTC. His initiatives to obtain an operating profit and net profit were interpreted unsympathetically by the trade unions. They took a belligerent stand for wage revision and threatened service disruption. The disruption of an essential service guaranteed by the state eventually led to intervention by the state’s chief minister, in favour of wage revision. The additional wage burden frustrated projections for a possible turnaround. Given the further constraints and stretched resources, how would the managing director re-initiate change and restructure the organization?

This case deals with restructuring initiatives in organizations providing welfare services and public goods. The context is that of a state-owned enterprise (SOE) owned by the provincial government of an emerging economy, India. The objectives are:<ul><li>To examine the antecedents and consequences of regulatory policy relaxation on an SOE’s performance.</li><li>To illustrate the nature and diversity of stakeholders’ responses to an SOE’s strategic initiatives as a result of changes in regulatory interventions.</li><li>To offer insights into the internal dynamics within the top management of an SOE in India.</li></ul><br><br>This case can be used in MBA-level courses in the following disciplines:<ul><li>Strategic management: To explore the interdependencies between the elements of environmental discontinuities and restructuring initiatives by a firm.</li><li>Organizational behaviour and change management: To examine how interventions by top management in changing the structure and culture of an organization can precipitate a bigger crisis.</li><li>Leadership: To explore the dilemmas and impediments faced by leaders during turnaround initiatives.</li><li>Public Enterprise Management: To obtain insights into the consequences of regulatory interventions on the internal affairs of an SOE in an emerging economy.</li></ul>

• Public Sector
• Restructuring
• Railway
• India