Escorts, a large historically successful Indian conglomerate, was confronted with a dramatic change in its external environment caused by liberalization policies in its domestic market. At issue is the formulation and implementation of the company's restructuring strategy in response to the changed conditions. The case should be used in a general management/business policy course to illustrate the formulation and implementation of strategic responses to similar environmental changes occurring in a number of developed and developing countries. A second case, Escorts: A Restructuring Plan, 9A95M011, documents Escorts' 1994 plan of response. A third case, Escorts: The Tractor Division, 9A95M010 concerns a specific division and illustrates implementation barriers otherwise unapparent in the previous cases.
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