Cornwell Performance Products Harvard Case Solution & Analysis

t was May 2007. Earlier this week, Cornwell Performance Products (CPP), a multinational chemical products division Cornwell, Inc, has notified its largest customers, the price of hydrofluoric acid (HF) increased at the end of the year. This action was in accordance with the environmental clause in the contract with the group CPP refinery Epsilon. The contract provided for a 60-day period after receipt of the notification in which the parties could try to reach a mutually acceptable agreement. If agreement can not be reached, Epsilon will have the opportunity to cancel the contract and buy it from another vendor HF (probably Dupre, Cornwall's biggest competitor), or build its own production of the HF unit. Despite this, the failure to keep Epsilon contract would threaten the continued profitability of CPP, thus making the pending discussions with Epsilon one of the most important in modern history. "Hide
by Sherman S. Frey, Jr., Paul Bacon Source: Darden School of Business 10 pages. Publication Date: July 13, 2012. Prod. #: UV6398-PDF-ENG

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