The transition from centrally planned economy to market economy in Czech Republic needed the adaptation of global system changes that turned out to be more complicated and long term than expected before. The basic issue was the liberalization of prices and free trade on the one hand and privatization of governmental property on the other hand. The strategy was to implement the change as fast as possible by an economic healing shock. The privatization was planned as a short time task. The priority of this short term process was speed and volume.
The privatization process was accomplished by different methods. Nevertheless the most important method of privatization was the form of transformations of state owned assets to stock companies with the following privatization of the company stocks.
Table of Contents
- 1. History and privatization
- 1.1. History and development of Opavia
- 1.1.1. Historical development between 1840 - 1946
- 1.1.2. Cokoládovny's development under the planned economy (1946 – 1992)
- 1.1.3. Joint venture of Danone and Nestle (1992 - 1999)
- 1.1.4. Split of Cokoládovny (1999)
- 1.1.5. Change of the company name (2001)
- 1.2. History and development of Danone
- 1.2.1. Historical development of Danone group (1966-1973)
- 1.2.2. Merger of BSN and Gervais (1973)
- 1.2.3. Entry in the eastern European market (1989)
- 2. Management of transformation / modernization strategy
- 2.1. Modernization of production facilities
- 2.2. Modernization of human resource management in the transition period
- 2.3. Formulation of a new marketing strategy for the transition period
- 3. Summary
Objectives and Key Themes
This text analyzes the transition process and strategic development of Opavia-Lu, a confectionery company in the Czech Republic, during the shift from a centrally planned to a market economy. It examines the company's history, its privatization, and the subsequent management strategies employed for modernization and market adaptation.
- Privatization and its impact on Opavia-Lu
- Modernization strategies in production and human resources
- The role of international corporations (Danone and Nestle) in the transformation
- Adaptation to market economy principles
- The evolution of Opavia-Lu's corporate identity and branding
Chapter Summaries
1. History and privatization: This chapter details the history of Opavia-Lu, tracing its origins from its founding in 1840 as "Theodor Fiedor, spol. s.r.o." to its privatization in the 1990s. It covers the company's evolution under various ownership structures, including its nationalization after World War II and subsequent joint venture with Danone and Nestle. The chapter highlights the challenges of transitioning from a state-owned enterprise to a private company within the context of the Czech Republic's broader economic shift. The narrative emphasizes the significance of the company's brand heritage and its importance within Czech culture, which influenced the government's cautious approach to privatization.
1.1. History and development of Opavia: This section provides a detailed chronological account of Opavia's history, from its early days as a small wafer producer to its growth under the Fiedor family, its nationalization after World War II, and its eventual incorporation into the Cokoládovny state-owned enterprise. The narrative underscores the impact of significant historical events and political changes on the company's trajectory, illustrating the challenges of operating in different economic and political systems.
1.2. History and development of Danone: This section recounts the history of the Danone group, emphasizing its mergers, acquisitions, and expansion strategies that led to its global presence. The narrative highlights the company's transition from a glass manufacturing company to a major food conglomerate. It specifically emphasizes Danone's expansion into Eastern Europe in 1989, setting the stage for its involvement in Opavia-Lu's privatization and subsequent transformation. This section showcases Danone's strategic vision and the proactive steps it took to seize market opportunities during the political and economic shifts in Eastern Europe.
2. Management of transformation / modernization strategy: This chapter focuses on the strategies employed by Opavia-Lu to modernize its operations during the transition to a market economy. It covers the modernization of production facilities, human resource management, and marketing strategies. The chapter likely highlights the challenges of adapting existing practices to meet new market demands and the need for significant investments in technology and personnel development. The discussion of modernization strategies within this chapter likely provides insights into how Opavia-Lu navigated the complex processes of restructuring and streamlining its operations.
Keywords
Central European managerial systems, transition economy, privatization, Opavia-Lu, Danone, Nestle, confectionery industry, modernization, strategic development, human resource management, marketing strategy, Czech Republic, post-communist transformation.
Frequently Asked Questions: Opavia-Lu: A Case Study in Post-Communist Transformation
What is the main topic of this text?
This text analyzes the transition process and strategic development of Opavia-Lu, a confectionery company in the Czech Republic, during the shift from a centrally planned to a market economy. It examines the company's history, its privatization, and the subsequent management strategies employed for modernization and market adaptation.
What are the key themes explored in this case study?
Key themes include the impact of privatization on Opavia-Lu, the company's modernization strategies in production and human resources, the role of international corporations (Danone and Nestle), adaptation to market economy principles, and the evolution of Opavia-Lu's corporate identity and branding.
What is the historical background of Opavia-Lu covered in the text?
The text traces Opavia-Lu's history from its founding in 1840 as "Theodor Fiedor, spol. s.r.o." to its privatization in the 1990s. It details the company's evolution under various ownership structures, including nationalization after World War II and a subsequent joint venture with Danone and Nestle. The challenges of transitioning from a state-owned enterprise to a private company within the context of the Czech Republic's broader economic shift are highlighted.
What is the role of Danone and Nestle in Opavia-Lu's transformation?
The text examines the involvement of Danone and Nestle in Opavia-Lu's privatization and subsequent transformation. It explores their influence on the company's modernization and adaptation to market economy principles.
What modernization strategies did Opavia-Lu employ?
The text covers the modernization strategies employed by Opavia-Lu, focusing on the modernization of production facilities, human resource management, and marketing strategies. It highlights the challenges of adapting existing practices to meet new market demands and the need for significant investments in technology and personnel development.
What aspects of Opavia-Lu's management are discussed?
The text discusses the management of Opavia-Lu's transformation, including the challenges and strategies employed in modernizing production, human resources, and marketing during the transition to a market economy.
What is the significance of this case study?
This case study provides valuable insights into the challenges and strategies involved in the transition of a Central European company from a centrally planned to a market economy. It offers a detailed analysis of the privatization process, modernization efforts, and adaptation to market principles, contributing to a deeper understanding of post-communist transformation in the region.
What are the key words associated with this text?
Central European managerial systems, transition economy, privatization, Opavia-Lu, Danone, Nestle, confectionery industry, modernization, strategic development, human resource management, marketing strategy, Czech Republic, post-communist transformation.
What is included in the Table of Contents?
The Table of Contents includes sections on the history and privatization of Opavia and Danone, the management of Opavia-Lu's transformation and modernization strategy, and a summary.
Where can I find more detailed information about the specific historical periods of Opavia-Lu?
The text provides detailed chronological accounts of Opavia's history, broken down into specific periods such as its early days, its growth under the Fiedor family, its nationalization, and its eventual incorporation into Cokoládovny. Similarly, the history of Danone is detailed, highlighting its mergers, acquisitions, and expansion strategies.
- Quote paper
- Mark Bauer (Author), 2002, Transition Process and Strategic Develpoment of Opavia-Lu, Munich, GRIN Verlag, https://www.grin.com/document/9342
