Case | HBS Case Collection | May 2007 (Revised January 2009)

Stryker Corporation: In-sourcing PCBs

by Timothy A. Luehrman

Abstract

This case examines a proposed investment in the capability to manufacture printed circuit boards (PCBs) in-house rather than buying them from third-party contract manufacturers. Stryker Corporation's Instruments business is considering the proposal in response to difficulties with existing suppliers. The case requires students to formulate and execute basic quantitative capital budgeting analyses, specifically, to compute net present value (NPV) internal rate of return (IRR) and payback period.

Keywords: Competency and Skills; Capital Budgeting; Investment; Investment Return; Production; Valuation;

Citation:

Luehrman, Timothy A. "Stryker Corporation: In-sourcing PCBs." Harvard Business School Case 207-121, May 2007. (Revised January 2009.)