Product details

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Authors: David Jennings (Nottingham Trent University); C Mullins (Nottingham Trent University)
Published in: 1993

Abstract

This case concerns a packaging plant owned by and integrated into a diverse industrial company, Reed International. The plant serves a local market in which it faces extreme competitive pressures, both from customers and competition. Although the plant belongs to a wider organisation that assists with sourcing and technical development, the entry of competitors, overcapacity in the industry, the nature of competition and the changing requirements of powerful customers (supermarkets) have eroded profit margins. At the same time the plant is operating at full capacity. The objectives established for the plant are changing. In the future Reed International may divest themselves of their packaging interests and requests for further investment have to be well justified.
Location:
Industry:
Size:
200 employees
Other setting(s):
1985-1986

About

Abstract

This case concerns a packaging plant owned by and integrated into a diverse industrial company, Reed International. The plant serves a local market in which it faces extreme competitive pressures, both from customers and competition. Although the plant belongs to a wider organisation that assists with sourcing and technical development, the entry of competitors, overcapacity in the industry, the nature of competition and the changing requirements of powerful customers (supermarkets) have eroded profit margins. At the same time the plant is operating at full capacity. The objectives established for the plant are changing. In the future Reed International may divest themselves of their packaging interests and requests for further investment have to be well justified.

Settings

Location:
Industry:
Size:
200 employees
Other setting(s):
1985-1986

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