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This case study is about strategic management, organisational behaviour and goal conflict among functional areas and conflict between parent company and its subsidiary. It illustrates a series of organisational and process problems that effects Micrum''s ability to fix important problems and keep important customers. Micrum is in crisis management and their success or failure is closely related to their ability to formulate goals and objectives and in selecting strategies under conditions of uncertainty as they relate to planning, organising, directing and evaluating the interests and needs of each department separately and jointly. This case could be useful in undergraduate business courses in organisational behaviour, management of change, strategic management and integrated management. Since it also deals with defense contracting issues involving product development and quality, this case could also be used in courses and programmes that involve government contract administration and procurement organisation and management.