Case | HBS Case Collection | November 1989 (Revised March 1995)

Goodyear Tire & Rubber Co.--1988

by Timothy A. Luehrman

Abstract

Set two years after a takeover attempt forced the company to restructure by leveraging up, selling assets, and repurchasing stock. The case affords an opportunity to analyze what effect the restructuring had on: 1) the cost of capital, 2) investment decisions, and 3) the competitive behavior of other firms in the industry.

Keywords: Acquisition; Restructuring; Assets; Cost of Capital; Investment; Competition; Rubber Industry;

Citation:

Luehrman, Timothy A. "Goodyear Tire & Rubber Co.--1988." Harvard Business School Case 290-016, November 1989. (Revised March 1995.)