GSMC 2014

Global Summit on
Management Cases

THE ELECTRODE GAMBLE (A, B)*

ABSTRACT
The case study addresses the problems of managing strategic change in a small business company Kislorod
Plus (Niznhny Novgorod, Russia) a local trader of welding equipment. The story starts with firing the
companys executive, who made a number of dramatic mistakes, and thus failed implementing various
corporate strategies, ruined the economy of the firm, and created a significant threat of bankruptcy.
Notwithstanding all the problems of the heavy crisis, the company and the situation still have a number of
opportunities that are to be recognized and pursued in order to save the business and lead the company to
prosperity. The case study tackles multiple issues: recognizing entrepreneurial opportunities within an aggressive
and messy business environment, establishing productive relations with counteragents (i.e. banks, suppliers,
distributors), revising the financial model of the business, allocating and managing budgets, controlling cash
flows, understanding the options of competition, creating a successful value proposition, foreseeing
competitors actions and developing thought-through action plans. It can be used for the classes of General
Management, Strategic Management, Entrepreneurship, Finance, and Marketing.

Pedagogical Objectives

To recognize entrepreneurial opportunities

To analyze the management mistakes

To analyze the key aspects of a business model

To understand the role of finance within a business strategy

To develop an anti-crisis strategy

Case Positioning and Setting

The case study can be used in MBA and Executive MBA for the following courses:
Business Strategy - Crisis Management - Entrepreneurial Finance

* GSMC 2014, IIM Raipur

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