a.

Analyze the sequentially the incidence of misfortune that struck the company and the
aftermath of it.
Ans. The incidences of misfortune are as listed below:
Mannai Corporation was appointed agent for Lada cars and spares in Qatar and
Bahrain in 1988, extended to Libya, Syria, Kuwait, Yemen, Sudan and Iran but Ladas
limited investment in product development and delays in deliveries meant that the
re-export market for Lada subsequently declined.
MIC acquired oil exploration rights but projected investment costs escalated. MIC
also came across delays in obtaining the necessary government permits resulted in
the project being shelved and interest were sold on at a substantial loss.
Huge swings in global oil prices as prices to plummet from $22/$23 per barrel to $10
by the end of 1998.
By 1997 Mideast Constructors W.L.L. (MECON) had accumulated losses of
approximately QAR 80 million.
The Mansal (Mansal Offshore QSC) fleet was old--some of the rigs were over 30
years old--and required heavy ongoing maintenance and refurbishment. Some refits
such as Rig Leen reconstruction had experienced severe cost overruns.
Mr. Mannais ill health:
His ill health affected his attention to detail and his concentration levels. Being an
influential member of the Qatari community he had good relations with the British &
French governments and US. His absence from business for a year affected
companys reputation and slowed down the future plans.

The Partners Disagreement:

Mr. Mannais stubbornness and determined behavior led to differences between
partners as they wanted to be consulted before important and strategic decision
making.