Publications
Publications
- December 2010
- HBS Case Collection
Fortis Industries, Inc. (A)
Abstract
Fortis Industries' packaging division manufactures steel and plastic strapping. In 2007, the company underwent a leveraged buyout. The case focuses on the packaging division's need to maintain high profitability in a declining market for steel strapping. Since 1998, Fortis has been losing 1% per year of the steel strapping market. Since then, there has also been significant erosion of prices. The division president is faced with 1) decreasing price to increase market share, or 2) maintain/increase cash flow. The specific decision revolves around the potential adoption of a price-flex system that is designed to authorize selective discounting by the division's sales personnel.
Keywords
Leveraged Buyouts; Decision Choices and Conditions; Marketing; Supply and Industry; Manufacturing Industry
Citation
Moriarty, Rowland T., David May, and Gordon Swartz. "Fortis Industries, Inc. (A)." Harvard Business School Case 511-079, December 2010.