Essay on LorPel Case Study

Words: 1822
Pages: 8

The success of a business is to a large extent determined by its strategic position, business tactics and the management's ability to coordinate available resources. The formation of LorPel to a significant level represents a successful business whose operational strategies presented well, researched and carefully implemented strategies. LorPel was formed in 2003, having overcome a significant number of challenges in the registration process. This paper composes of an analysis of the business; including a situational analysis, company strategy and recommendations for future development.
Background Information
The idea of forming the business was initially formed as a result of the two re-united brothers, wanting to do
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Belarusian government-business relations were highly contradicting.
Alternative Solutions -10%
It is important for the management to weigh the various options in order to come up with the most efficient strategy for the company to take at this particular time. The pros and cons of the options given by Victor, Aleksey and Igor can be described as follows:
Igor's position – stay local and grow: The main advantage with Igor's position is that the business was already well established in the country and therefore, staying local would be a good option. Furthermore, the company had made a significant impact on the local community. There was a challenge however in that the climate in Belarus was uncertain and the business risked being harassed by state officials and could finally be state controlled.
Victor's position - move from Belarus and start up in Ukraine or Russia: The option given by victor provided an opportunity for the business to move to an area where there was less government intrusion such that the company could run independently and make use of all the profits obtained. Furthermore, they would still retain their Europe market. Relocation however was not an easy task because they would have to start from scratch. They would need to buy new equipment, hire employees and establish supply channels afresh which may consume a significant amount of capital. Notably, it would be inappropriate to sell LorPel having