MMTC Limited: 1992 (A)

Abstract

It is a case of a large trading company faced with a radically changed economic environment. The case describes the situation of MMTC Limited, a public sector company under the Ministry of Commerce, in mid 1992. The economic environment in India was changing rapidly due to restructuring of the economy, and the world environment was changing due to formation of the European Community, break up of the Soviet Union, and GATT. The situation of two of the four trading groups is described in some details, in addition to the performance of MMTC and organization and management arrangements. With the changed economic scenario and progressive decanalization, MMTC stood to face a likely sharp fall in its turnover. The case has the Chairman and Managing Director of the company wondering about the strategic direction MMTC should take to meet the changed situation.