Michigan is the production of a broad line manufacturer of components for the automotive industry. It was created by a network of nine plants, as its product line has grown. New, high-volume production, are usually made in a new, focused, large amounts of plants, and older production lines are generally assigned at the factory Pontiac, the oldest in the system. Because Pontiac produces a wide range of products, their overhead costs are very high. Management must decide whether to close the factory Pontiac or find a way to make it profitable. "Hide
by Clayton M. Christensen Source: Harvard Business School 15 pages. Publication Date: October 13, 1993. Prod. #: 694051-PDF-ENG