Strategic initiatives in a transitional economy: A Hungarian clothing company struggles to compete

This paper examines how Western management techniques have been introduced by a new owner to implement strategic initiatives in a newly privatized clothing firm in Hungary. In an attempt to reposition the firm in a higher value‐added niche and avoid the intense competition of a cost‐based competitive strategy, the foreign owner has introduced Western management techniques that focus upon changes in work organization and work monitoring. Detailing how such changes are implemented and the problems that emerge, are the focus of this paper. The paper concludes with a critical evaluation of the failed attempt by the firm to reposition itself strategically and what this might portend for other firms that seek respite from cost‐based competitive strategies.