Bridgeton Industries was experiencing declining sales. To be more competitive, introduces a procedure for the classification of products according to their productivity and other factors. The products are classified into three groups: world class, which could not world class and world class. The company outsources products of non-world class. This outsourcing costs money on other products to increase because some costs associated with outsourced products have not disappeared. These waste products cost more due to become world-class no and therefore candidates for outsourcing. The Company has entered the death spiral.
Robin Cooper,
Patricia J. Bost
Source: HBS Premier Case Collection
7 pages.
Date Posted: April 23, 1990. Prod #: 190085-PDF-ENG
Bridgeton Industries: Case factory solution components and automobile manufacturing