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Signode Industries Inc. (A) Case Solution & Answer

The Signode Industries packaging division manufactures steel and plastic strapping. In 1981, the company was the largest leveraged buyout in history of American business. The case relates to the need for packaging division to maintain high profitability in a declining market for steel strapping. Since 1974, Signode has lost 1% per annum of the market for steel strapping. Since then, there have been significant price erosion. The division president faces 1) declining market share increase, or 2) keep prices / increase to increase cash flow. The specific decision revolves around the potential of a flexible pricing system that is designed to allow selective discount sales staff adoption division.
by
Moriarty Rowland T. Jr.,
David May,
Gordon Swartz
Source: Harvard Business School
18 pages.
Date Posted: November 14, 1985. Prod #: 586059-PDF-ENG
Signode Industries, Inc. (A) Case Solution

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