Mohammad Al-Mojil Group (MMG) the energy behind energy
Trading in Mohammad Al-Mojil (MMG)’s shares was suspended in July 2012. The company did not fulfil the losses triggered mandatory reporting rules. In a related case, MMG’s auditor Deloitt & Touche was suspended by the Capital Market Authority (CMA), to be effective beginning 1 June 2015. MMG went public in 2008 after years of phenomenal growth. The company pursued an aggressive growth strategy by out-pricing competitors. However, the strategy failed miserably when additional costs eroded its profit. The company lost significance amount of money which led to constant management and board reshuffle. A number of MMG board members and executives might be prosecuted over possible violations of company laws.
Meaningful discussion on the role of the board in firm strategy. Reflection on the follow questions: What in your view were the red flags that should have attracted attention? What was the MMG board’s working relationship with management from 2008 to 2014? Could the board have acted differently? Could the banks have acted differently during IPO process? Did MMG board have the right qualifications for the volatile environment in 2008-2009? How will regulatory expectations change going forward?
Mohammad Al-Mojil Group, Construction and Engineering
2008-2015
Cranfield University
Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
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Harvard Business School Publishing
60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
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NUCB Business School
1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]
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