Gorenge D.D.: Evolution or Revolution

22 Pages Posted: 21 Oct 2008

See all articles by Lynn Isabella

Lynn Isabella

University of Virginia - Darden School of Business

Gerry Yemen

University of Virginia - Darden School of Business

Hatem Hatem

University of Virginia - Darden School of Business

Abstract

Following a popular leader such as Jože Stani?, president of Gorenje d.d., Slovenia's largest household appliances manufacturer, is always a challenge. This legendary figure led Gorenje from the brink of bankruptcy in 1991 to its current position as eighth-largest household appliance producer in Europe. Stani?'s successor, Franjo Bobinac, a young executive who had been Stani?'s second in command for five years, had to lead the company through the country's accession into the European Union. This meant a changing competitive landscape—and the need for an internal organization willing to change to meet that competitive challenge. Students must put themselves in Bobinac's position as he works toward a clear vision and strategy for the future. How big is his window of opportunity? Would he be able to implement his strategy before the window closed on him? Could the company sustain major change without losing employees or being acquired? What would it take for company employees to follow his leadership as they did with Stani?? Was a survival mentality enough to climb to their goal of holding the fifth position in Europe by 2006? Could the organization evolve or would change require nothing less than a revolution?

Excerpt

UVA-OB-0862

GORENJE D.D.: EVOLUTION OR REVOLUTION

The time has come to leave. It is good for Gorenje that I am leaving, but most important is that this transition has been done through an evolution, not a revolution.

Jože Stanič

On March 28, 2003, it was announced that Jože Stanič, president of Gorenje d.d., Slovenia's largest household appliances manufacturer, would officially retire in July of that year. This legendary figure was the emblematic leader who took Gorenje from the brink of bankruptcy in 1991 to its current position as eighth largest household appliance producer in Europe.

Stanič's successor, Franjo Bobinac, a young executive who had been Stanič's second in command for five years, faced daunting challenges. He was following in the path of a dynamic, charismatic, and respected leader. The company's accession into the European Union meant a changing competitive landscape—and the need for an internal organization willing to change to meet that competitive challenge. Bobinac's own goal was to help Gorenje reach fifth-place status in the European household goods market by 2006 in an industry plagued by overcapacity.

. . .

Keywords: Change management, change implementation, Europe, European Union, change agent, successor, competitive dynamics, strategic planning, leadership

Suggested Citation

Isabella, Lynn and Yemen, Gerry and Hatem, Hatem, Gorenge D.D.: Evolution or Revolution. Darden Case No. UVA-OB-0862. Available at SSRN: https://ssrn.com/abstract=1281866

Lynn Isabella (Contact Author)

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States
434-924-4818 (Phone)

HOME PAGE: http://www.darden.virginia.edu/faculty/isabella.htm

Gerry Yemen

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

Hatem Hatem

University of Virginia - Darden School of Business

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

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