Management Case Essay

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/ 5ffim* DOCUMENT PEDAGOGIQUE/TEACHING MATERIAL Accounting and MSC Auditing Manag-ement SYstems iirot-ation PROGRAMME: T GRANDE ECOLE 81tr2E3 : 11 IMSC ANNEE ACADEMIQUE/ACADEMIC SEMESTRE/SEMESTER YEAR: 2OL4l 2ols t2 0 I R $un^ ê J-" ^f @- L)L?"- \ [§@EI Harvard Business School 9-190-089 Rev. Aptit 2{. ls)7 Destin Brass Products Co. Etery montfi it becourcs clearer to ms that our cowpetitors either htow sotwthing that an do not kttozu, or they nre crazy. I radlize tlnt pwnps me a maior protluct fu a.-big ruill ba nurket for all of ns, but tuitti the pricc cuttittg that is going an, -it .is likely that no one prolitably if tttey keep forcirrg rrs to nmtclt their lozuer prices- I Suess^ioe dble to'æll puritpt profit in flaw slnrdd be gintrîrrt inni ,o*1nîitoi'srun io be o.oertooxing the oppartunities for controllcrs. Even ærith the !21tb% yrice iucruæ report no new comPelition. zae made tlrcre, our «les repræentatiors Roland Guidry, president of Destin Brass Products, vrras discussing _product profitability in The the latest month with Peigy Alford, his controller, and fohn scott, his manufachrring manager' with apprchension-because Àoiing among the thrôïa§ taking place in an atmosphere tinged .o*puüt rrt haà been reclucing prices on pumps, Destin Brass Product's maior product line' l{ith no u"iqln design aclvantage, ,noîàgu* at tjestin had seen no alternative excePt to match tlre retiuced prices while-trying to Àaintain i'olumes. Moreover, the company's profits in the latest rnonth Irad slippea again to be lower than those in the prior month. The purpose of the nreetirrg lvâs to try to understand the comPetitive trencls and to develop along nerv strategià fôr dealing with thein if new sirategies were appropriate. The three managers, sales ànd marketing manager, rryho coutd not

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