Subject category:
Finance, Accounting and Control
Published by:
Ivey Publishing
Version: 2003-04-28
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Abstract
Fil Metaillique de Briteque Limitee (FMBL), a small Montreal company, had to decide whether or not to offer a discounted price on their most widely-sold product in order to recapture a large ex-customer. After doing a qualitative size-up of the firm and the industry, students are expected to compare the new lower price to FMBL''s costs to determine if accepting the offer is in the best interest of the company. A consideration of pricing policy, strategy and profitability are central to the decision.
About
Abstract
Fil Metaillique de Briteque Limitee (FMBL), a small Montreal company, had to decide whether or not to offer a discounted price on their most widely-sold product in order to recapture a large ex-customer. After doing a qualitative size-up of the firm and the industry, students are expected to compare the new lower price to FMBL''s costs to determine if accepting the offer is in the best interest of the company. A consideration of pricing policy, strategy and profitability are central to the decision.