CASE STUDY
SUBMITTED TO
Md. Mofassel Hossain (MOF)
Department of Management
School of Business and Economics
GROUP NUMBER : 06
GROUP NAME : WARRIORS
COURSE CODE : MGT 314
SECTION : 10
SEMESTER : Fall 2020
ANSWER TO THE QUESTION NO.1
Fred Burg was an immigrant from Czechoslovakia. In 1944, in Los Angeles, he formed a
corporation named Burgmaster Corp. The company manufactured machine tools. To understand
the path and the destiny of the company, Max Hollander interviewed 22 former employees of the
organization. In 1965, Burgmaster Corp. was a prosperous business. In those days, the annual
revenue of the company reached $8 million. The company continued to develop, and it needed
funding for that purpose. Thus, Houdaille Industries Inc., a conglomerate headquartered in Buffalo,
purchased Burgmaster Corp. However, Kohlberg Kravis Robert and Co. bought Houdaille from a
leveraged buyout (LBO) in 1979. In 1982, there was a big decline in the machine-tool business.
As a result, Burgmaster Corp was in considerable debt. At that point, Houdaille was able to
persuade the Senate to pass a resolution withdrawing the tax credit awarded to a corporation,
manufacturing Japanese instruments for investment in the United States of America.
The internal causes contributing to the demise of Burgmaster Corp. include the following:
• After Houdaille purchased Burgmaster, to manufacture machine tools, it introduced a
method in which computerized scheduling was used. Houdaille, however, failed to
understand that the products for computerized production scheduling were too
