MAK Brake Lining Company

Internally, MAK is organized to include a limited partnership with Ferodo. The corporation faces challenges concerning its licensing arrangement with Ferodo since that it needs to restructure its production program away during the use of asbestos in order to be able to export to markets outside of Egypt.

MAK is chaired by Mr. L.J. Kharafi in the major investment group that is certainly financing the firm. Its managing director and vice chairman is Dr. A.F. Abdel Wahab. You'll find eight functional divisions reporting to Dr. Wahab, each of that may be headed by a manager who is responsible for ones activities relevant to particular business units or manufacturing functions. These units are: quality assurance, factory management, manufacturing and resources management, administration, finance, purchases and foreign trade management, local sales and promotion management, and maintenance (Gupta and Hatem, 9).

The corporate culture produced at the corporation emphasizes a strong focus on top quality assurance including a close relationship with Ferodo and the Kharafi management and finance team. Due to concerns with regards to the use of asbestos in business products, it now faces a major challenge due to a perceived have to restructure its arrangements with Ferodo. However, "Ferodo was nonetheless guarded about allowing the technology to be passed out to a licensee. Ferodo wanted a joint ventur

 

Of these recommendations, the most viable is that MAK should go on its own, develop its very own brand name, seek export markets with non-asbestos technology, and make the necessary investment to replace asbestos materials in its products. Some support can be obtained via the Industrial Modernization Centre which has available corporations a complete, no-cost technology audit. Given the substantial investment that El Kharafi has made in MAK to date, it ought to be approached to provide the more financing required to meet an anticipated variable cost enhance of 30 percent of retooling with non-asbestos technology. If MAK is being competitive beyond the Egyptian or local market, it need to pursue this specific choice more than all others.

MAK is, as described by Gupta and Hatem (7), is at a crossroads and needs to generate a decision that will be quite significant to the company's future. This will necessitate finding either a new brand name for products which are currently marketed in Egypt under the Ferodo brand, restructuring the agreement that has existed with Ferodo with that firm's new owner, or finding some other licensing agreement. These options each have advantages and disadvantages.

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