A STAR THAT COLLAPSED INTO A BLACKHOLE: CASE STUDY ON PAKLAND CEMENT LIMITED

Abstract

Pakland Cement is a rag-to-riches chronicle a leading Pakistani cement company. Due to imbalanced financial structure, imprudent leadership and speculative decision-making it became a candidate for a takeover in 2004. Companies ran by CEO's who are able to shift gears quickly in the face of rapid succession of events are able to survive economic downturn and continue as a going concern. Family owned businesses which are ran by owner managers are generally in cumbered by their management philosophy which is based on tried and tested methods that have served them well in the past. They are therefore unable to meet the challenges of today's rapidly changing market conditions which leads to either the closure of their business or its takeover by more efficient companies. One was controlling the separation of ownership and control and the induction of professionals in the top management.The Code of Corporate Governance which has been institutionalked the world over also provides a ray of hope forprivate concerns which have turned public. The need for the hour is the enforcement of this Code in letter and spirit not only to safeguard the public interest but also to ensure good health of the company.Keywords: Cement Industry; Strategies: Managerial deficiencies