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. Historcal 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. Historcal 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)
1.2.4. Present situation of Danone group
2. Management of transformation / modernization strategy
2.1. Modernization of production facilities
2.1.1. Opavia in Opava
2.1.2. Deli in Lovosice
2.1.4. Kolonada in Marianske Lazne
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 Topics
This work examines the transition process of the Czech company Cokoládovny from a state-owned, centrally planned entity to a modern, competitive market-economy business under the ownership and strategic direction of Danone. The primary research focus lies on how management successfully modernized production facilities, human resource practices, and marketing strategies to navigate the post-1989 economic environment.
- Historical evolution of Cokoládovny and the Danone Group
- Strategic restructuring and privatization of state-owned assets
- Modernization of production infrastructure and technological investment
- Transformation of corporate culture and human resource management
- Development of customer-oriented marketing strategies
Excerpt from the Book
1.1.1. Historcal development between 1840 - 1946
The history of Opavia – Lu dates back until 1840. In this year, the "Theodor Fiedor, spol. s.r.o." in Opava was founded by Kaspar Fiedor, the company that build the foundation for Cokoládovny, and succeeding Opavia – Lu. The first product of the company was wafers. In 1880 the son of Kaspar Fiedor, Theodor Fiedor established the factory production with industrial machines and ovens. In 1914 the company had already 60 employees and produced wafers, biscuits, tea-cakes, ginger bread, and cookies for the market of the Austrian-Hungarian Empire. In 1928 the company had more than 450 employees and already forty different brands.
Summary of Chapters
1. History and privatization: This chapter covers the historical background of Opavia and Danone, tracing their development from the 19th century through the state-planned economy era to their integration and eventual privatization.
2. Management of transformation / modernization strategy: This section details the specific managerial actions taken to improve efficiency, focusing on the modernization of factories, the reform of human resources, and the implementation of a new marketing strategy.
3. Summary: This chapter concludes that the transformation of Cokoládovny stands as a highly successful example of privatization and corporate recovery in the Czech Republic.
Keywords
Cokoládovny, Danone, privatization, transition economy, production modernization, human resource management, marketing strategy, Opavia, corporate culture, strategic development, food industry, Czech Republic, market economy.
Frequently Asked Questions
What is the core subject of this paper?
The paper explores the transition of Cokoládovny from a centrally planned industrial firm to a competitive participant in the market economy following the fall of the Soviet bloc.
What are the central themes of the work?
The core themes include industrial privatization, the strategic modernization of production, organizational culture change, and the adoption of Western marketing standards in a post-communist context.
What is the primary goal of the research?
The goal is to analyze the successful managerial strategies applied by Danone to transform Cokoládovny into a competitive enterprise after acquiring it during the Czech privatization process.
Which scientific methods were used?
The work employs a historical and case-study approach, analyzing business development milestones, internal company data, and strategic reports to explain the corporate transition.
What is covered in the main body of the text?
The main body covers the historical development of both the parent and subsidiary companies, specific infrastructure modernization projects, human resource policy reforms, and the formulation of new market-oriented strategies.
Which keywords best describe the work?
Key terms include privatization, Cokoládovny, Danone, transition economy, and management strategy.
What were the major inefficiencies of Cokoládovny before the privatization?
The company suffered from an oversized workforce, outdated production facilities, low production efficiency, lack of synergy in its product range, and a complete absence of professional marketing or advertising.
How did the "mixed learning system" function for management?
It paired local Czech managers with foreign counterparts, allowing for a mutual exchange of skills and knowledge, which helped overcome cultural barriers and promoted a modern business mindset.
- Quote paper
- Mark Bauer (Author), 2002, Transition Process and Strategic Develpoment of Opavia-Lu, Munich, GRIN Verlag, https://www.grin.com/document/9342
