PRIVATIZATION IN ROMANIA: SERICO, THE FURNITURE INDUSTRY CASE, 1990-2000

摘要

After the political changes in Romania in the early 90s, Serico was converted to a for -profit management and retailing company. Previously, the company had been part of the state-owned Centralized Organization for Furniture Industry in Romania. To adapt to a free market economy the company had to downsize. In 1990, Serico had about 400 employees and sales of $15million. Today, there are only 35 employees and the annual sales are $10.5 million. Considering that the exchange rate in 1990 was controlled, it can be said that Serico is now actually at a higher level of sales today than in 1990. The most important change in Serico's management was eliminating the different levels in the company. Serico changed organized a manufacturing department to an on-demand basis. Production was organized as build-to-order but managed as batch production. Serico is 60 percent owned by individuals and is now publicly traded on Romanian stock market. This paper will explain how Serico was able to achieve its amazing transformation from a protected state-run organization to a profitable international business.