Case | HBS Case Collection | March 1997 (Revised November 2013)

Purity Steel Corporation, 2012

by Robert L. Simons and Antonio Davila

Abstract

Managers introduce a new performance evaluation system based on sales growth and return-on-investment (ROI). A branch manager wonders whether his new warehouse should be leased to mitigate the impact on ROI. Formulas and performance calculations are provided. A rewritten version of an earlier case.

Keywords: Investment Return; Judgments; Motivation and Incentives; Performance Efficiency; Compensation and Benefits; Salesforce Management; Performance Consistency; Performance Productivity; Steel Industry;

Citation:

Simons, Robert L., and Antonio Davila. "Purity Steel Corporation, 2012." Harvard Business School Case 197-082, March 1997. (Revised November 2013.)