Business Case Studies & Business Publications

Gorenge D.D.: Evolution or Revolution

Isabella, Lynn A.,...

Case

Gorenge D.D.: Evolution or Revolution

Isabella, Lynn A.; Hatem, Hatem; Filipovic, Nenad; Yemen, Gerry

OB-0862 | Published January 20, 2006 | 22 pages Case

Collection: Darden School of Business

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Following a popular leader such as Jo?e Stanic, 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. Stanic's successor, Franjo Bobinac, a young executive who had been Stanic'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 Stanic? 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?