Case | HBS Case Collection | April 1993 (Revised May 1993)

Northern Telecom (A): Greenwich Investment Proposal

by Robert J. Dolan

Abstract

The business products division has developed a business proposal asking for $50 million to fund the creation of a new telephone system for the small business market. The company's last entry into this marketplace lost $70 million. The new product would face 100 competitors in a market believed to be at zero growth rate. Should the investment proposal be accepted?

Keywords: Risk and Uncertainty; Communication Technology; Market Entry and Exit; Corporate Entrepreneurship; Investment; Product Development; Telecommunications Industry; Canada;

Citation:

Dolan, Robert J. "Northern Telecom (A): Greenwich Investment Proposal." Harvard Business School Case 593-103, April 1993. (Revised May 1993.)