case study outline

Outline of the case study

David and George founded a mining company in 1990. Two childhood friends who met in  playgrounds back in Arizona. They grew up together and they both joined the military forces  before collage. They lost track of each other but years later after they both had retired from military when they both had got married they found each other and decided to establish a company and work together for old times sake. There families bonded really well. They started by extracting copper out of mines and melting it and sell it to the copper refineries. Their business soon expanded and therefore they wanted to enter different fields to make huge amounts of profit. They started buying lands and properties the prices were rising and the profit was hugely increasing day by day. Soon David left Arizona and moved to the turkey to expand the real-estate business in turkey. After David moving to turkey the business grew exponentially and the total assets of the company soon rose from $200m to $400m.the way the things worked between David and George was, David had control of all the assets in Turkey by having a letter of attorney in turkey and vice versa in Arizona. After a few years of succession in 2007 David heard rumours about George leaving all the assets as guarantees in order to get a loan of $300m to expand the mining sector of the business without discussing things with David.

When David was back in Arizona he found out that there are no assets left there and for some reason George cannot pay the debts. No factory or refinery has been established and basically the money was lost. No money, no assets and George has nothing to say but mentioning he used the money to support davids section in turkey while David was claiming that they outsourcds only $20m and that was by selling some assets back in the day.
Peter and Henric ( Emily’s nephews ) who worked in the office in Arizona as commercial managers and chairman respectively were completely blank on what happened to the money. The bank soon took over all the assets and the Arizona branch was completely broke. Soon later the credit crunches hit the turkeys market and economy, the price of land and properties dropped while David was under a lot of debts to pay the mortgages of the properties which devalued by over half. David gave back the properties under the mortgage and was just left with less than 10% of the initial assets and moved back to Arizona. Davids oldest son ( Daniel ) who was finishing his studies in Canada soon moved back to Arizona and got the job from his cousin and started training as the commercial manager in the company. David and George couldn’t solve the problems with each other and the conflict was taken into the families as well. Emily’s nephews Henrik and peter stayed with George and David sold his shares of the company with the price negotiation, that he would not want any part of the troubles that George had taken them into, therefore George has everything which included the responsibilities.
David started all over again by founding a new mining company, and with the experience he has had and help of his son Daniel in the company they accomplished a new source of income for the family. Emily’s other nephew Matthew ( peters younger brother ) got a job in the company as one of the chair men. The new company started working well in both construction and mining industries back in Arizona while davids family had decided to stay and live in turkey. Daniel soon became fed up with his fathers decisions in the company, and his over trust issues by lending money to friends and having to fight later on to get the money back and investing in the wrong fields in Daniel’s point of view. He stablished a company of his own turkey to be next to his family as well as being introduced to the new opportunities in Istanbul, however he needed more experience. David had still no idea about Daniel’s decisions but Daniel managed to convince David that he needs to study masters. After he finished his masters in business and management he didn’t know whether he wanted go back to Arizona and deal with the bad decisions of David or go to Istanbul and hope for some new opportunities to come up and make money.