Montague Corporation (A)

by Norman A. Berg and James Weber

Abstract

The Montague Corp. is a small company started in 1987 and owned by David Montague, age 31, and his father. The company designs, manufactures in Taiwan, and sells through distributors worldwide a high-quality "bicycle that folds." The company offices are located in Cambridge, Mass., and the company has only five other employees, all younger than David. The company has been financed internally and is cash-rich at the present rate of growth. About 90% of sales are foreign, as is all of the manufacturing.

Keywords: Business Strategy; Financial Strategy; Financial Management; Job Cuts and Outsourcing; Globalized Firms and Management; Family Business; Bicycle Industry; Taiwan; Cambridge;