ABSTRACT
CSAO, which stands for Czechoslovak Automobile Repair Plants, is located in Teplice, a town of 50,000 inhabitants in western Bohemia near the German border. CSAO was marginally profitable in 1991 and 1992. The small profit was divided between mandatory contributions to the company’s social fund, administered by the labor union, and the company’s reserve fund. The goals for the company were twofold: to maintain a sufficient number of customers in a severe recession, and to stabilize ownership, despite the divergent interests of the board of directors. CSAO Teplice grew to become the leading automotive repair business in the region. A good reputation for technical competence, high quality, and reasonable prices attracted customers. At CSAO a.s., it is the general manager who is the most experienced proponent of company development. CSAO a.s. will continue to be strangled by diverging interests until a clear-cut ownership structure emerges.
