Business adaptive strategies in crisis

: the case of Heinrich Jungeblodt

Abstract

In 2020, the world economy suffered from the economic consequences of a global pandemic of the novel coronavirus SARS-CoV-2. The following case study describes a real-life scenario in which an economic crisis forced a German manufacturer of screws and fasteners to make fundamental strategic adjustments. The family business Heinrich Jungeblodt GmbH & Co.KG was held in the 4th generation and was heavily impacted by far-reaching cost savings and rationalization programs of its customers. The slump in demand for industrial products, rising manufacturing costs and the competitive pressure from Asia acted as a trigger for a strategic re-alignment. To reduce costs and to keep pace with the global competition, the company considered the establishment of an independent trading company.The case study serves as a pedagogical tool for participants to gain an understanding of how to compensate for negative effects in a crisis. It addresses relevant theoretical frameworks and concepts of strategy and organization theory. Additionally, the case offers the opportunity to individually develop appropriate adaptation strategies based on a thorough analysis of both internal and external factors. Finally, the case leads to a reflection on the extent to which production in Europe can be sustained if location factors and cost structures endanger competitiveness with the rest of the world.

Date of Award	28 Jan 2021
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Nuno Cardeal (Supervisor)