Section "C"

Case Analysis

Read the following case and answer the questions that follow:
Mr Hari Haran started his carrier as a sales trainee for Qpec Company in
1968. Twelve years later, he became CEO of Hamad Petroleum Co. in
1980. Mr. Hari Haran restructured Hamad Petroleum Co., getting rid of
about 10% of its white-collar staff, and pushed new product development
and plastics. Under his leadership, Hamad Petroleum had ten years of
tremendous growth: sales and earnings increased by six times. Mr. Hari
Haran retired from Hamad in 1991, but his retirement lasted only a few
weeks. In May, 1991, Hari Haran was called by the Gulf Petroleum
Company to become its CEO and try to restore it to health.
Gulf Petroleum, like all other petroleum company, had been hurt by
recession, price cutting, and overcapacity in the late1980s. Gulf Petroleum
had dropped from 1 st to 3 rd in worldwide petroleum product sales.
Mr. Hari Haran outlined a seven-point plan for Gulf Petroleum’s turn
around. The company was going to shoot for cost leadership, quality
leadership, new products, aggressive sales and merchandising, good
planning, judicious management of assets, and good relations with both
customers and employees. Mr. Hari Haran believed that if Gulf Petroleum
could become a market-driven company serving customers with products
that fit their wants and needs, it would succeed. Despite
that vision, Mr. Hari Haran was forced to lay off more than eight hundred
workers; close plants, cut capital spending, sell nonessential assets.
The results are no less than amazing. Gulf Petroleum’s debt has been cut by
more than $350 million a year. Operating margins have risen from 6 to
10% of sales. Earnings are up as well. Mr. Hari Haran’s style of leadership
has earned him high honor from the business community and the respect of
his peers. However, some of his senior managers were not satisfied with
Mr. Hari Harans way of doing things.
Questions:
a. What is the main issue of this case? Justify.
b. “Managerial Leaders are made.” Comment on the statement.
c. Would you describe Mr.Hari Haran a leader? Why or why not?
d. What could be the reasons for not liking Mr. Hari Haran by some
of his senior managers? What could Hari do in such situation?