Publications
Publications
- September 1990 (Revised April 1993)
- HBS Case Collection
R.J. Reynolds Tobacco Co.
By: William J. Bruns Jr.
Abstract
Following the company's purchase as a part of a leveraged buyout, the new management team of R.J. Reynolds Tobacco Co. had to decide what to do about the build-up of excess inventory of its independent wholesale customers. The case introduces students to the problems that changing inventory levels can create in interpreting financial results. Also raises ethical issues about the effect of such practices on company management, investors, wholesalers, and ultimately customers.
Keywords
Activity Based Costing and Management; Customer Satisfaction; Business or Company Management; Business Growth and Maturation; Consumer Products Industry
Citation
Bruns, William J., Jr. "R.J. Reynolds Tobacco Co." Harvard Business School Case 191-038, September 1990. (Revised April 1993.)