Case Analysis Of Lorpel

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Around 2004, Belarus developed a state-controlled economy. In this situation, local private enterprises were required to pay the government a lot and take many social responsibilities. LorPel, which is a local manufacturing company, is getting into trouble.
Moreover, as a partnership model business, because each of the three partners held different idea, the situation became worse for LorPel.
In this case analysis report, the three partners’ ideals would be evaluated, and a reasonable recommendation should be brought up.

Key words: State-Controlled Economy, Belarus, LorPel, Partnership

Generally speaking, there are many factors that need to be considered when a manufacturing business starts up, such as raw material supply, product distribution channel, the competitiveness between rivals, government policy, and capital raising. In this case analysis report, LorPel would be used as an example to illustrate why these factors are of great importance. In the following, the primary problem of LorPel will be identified and discussed based on the unique situation where it was operating.
LorPel is a manufacturing company founded in Belarus in 2003. This company specializes in manufacturing and selling wood pellet that was mainly sold to Europe. LorPel was founded by three partners - Aleksey, Victor, and Igor.
The idea of
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The future of LorPel seemed uncertain and pessimistic given this pressure. As Ivanova stated in The Motivation of Managerial Choices in the State-Controlled Economy of Belarus, within realm of a state-controlled economy, many enterprises would start to be concerned about their strategic development, and LorPel was not an exception. Overall, there are two options to go with, one is privatization of large stated-owned enterprise, and the other one is developing privately-owned small firms(Ivanova, Y.

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