| HBS Case Collection
(Revised from original 1998 version)
Experienced entrepreneur Charles Damon conducted a "roll-up" from 1987-1994 within the commercial airliner interior products industry. Damon's company, STT Aerospace, took advantage of an industry-wide recession in the early 1990s by buying when asset prices were low. The strategy's success was borne out by the company's growth and success in the marketplace. However, the company faced its own set of problems as the industry downturn continued. Critical decisions to be made at the end of the case include: 1) Whether or not STT should continue its acquisition strategy in the face of declining profits; 2) If the company should reset the strike price of options packages, a big part of employee compensation; and 3) If they should invest in a breakthrough high-tech product.
Selection and Staffing;
Growth and Development Strategy;
Compensation and Benefits;
Employee Stock Ownership Plan;
Hamermesh, Richard G., and Jeremy Dann. "STT Aerospace." Harvard Business School Case 399-056, June 1999. (Revised from original December 1998 version.)