Case | HBS Case Collection | 1986 (Revised from original version)

DAAG Europe (A)

Abstract

Company must decide whether to raise prices and tighten consumer credit in light of its strategy to rationalize production, introduce a new line of model elevators and increase its market share. Points up the interrelationships of the different functional areas within a corporate strategy and to some extent the time frame associated with strategic change.

Keywords: Change; Credit; Price; Policy; Business or Company Management; Marketing Strategy; Product Launch; Business Strategy; Industrial Products Industry; Europe;

Format: Print

12 pages

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Citation:

Aguilar, Francis. "DAAG Europe (A)." Harvard Business School Case 374-037, September 1986. (Revised from original August 1973 version.)

This case describes corporate management's recent discovery of widespread unethical pricing transactions in one division and key managers' different views on how to respond. Students are asked to evaluate management's position and decide who should do what to resolve Rein Chemical Co.'s problem. The improper pricing problem, involving an undetermined large number of customers, is complicated by the lack of clarity as to who the injured parties were and by the harm that any course of action could have on innocent parties.

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