Signode Industries’ packaging division produces steel and plastic strapping. In 1981, the company was the largest leveraged buyout in U.S. corporate history. The case focuses on the packaging of the division need to maintain high profitability in a declining market for steel band. Since 1974 Signode has been losing 1% per year of the steel strapping market. since then, there was also considerable price drop. Division President is confronted with 1) decreasing Price increasing … Read more »

Signode Industries’ packaging division produces steel and plastic strapping. In 1981, the company was the largest leveraged buyout in U.S. corporate history. The case focuses on the packaging of the division need to maintain high profitability in a declining market for steel band. Since 1974 has Signode has been losing 1% per year of the steel strapping market. since then, there was also considerable price drop. Division President is with one face) Decreasing price to increase market share, or to, 2) to increase / raise rates on cash flow. The The final decision concerns the adoption of a potential price-flex system that is designed to provide selective discounting of the division’s sales staff will approve.
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from
Rowland T. Moriarty Jr.,
David May,
Gordon Swartz
Source: Harvard Business School
18 pages.
Publication Date: Nov 14, 1985. Prod #: 586059-PDF-ENG
Signode Industries, Inc. (A) HBR case solution

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