Packaging Division Signode Industries »produces steel and plastic strapping. In 1981 the company was the largest leveraged buyout in U.S. corporate history. The case focuses on the necessity of packing units to maintain high yields in a declining market for steel band. Since 1974, Signode has been losing 1% per year steel strapping market. Since then, there has also been significant price erosion. President, faced with 1) lower prices to increase market share, or 2) maintaining / increasing prices to increase cash flow. Specific decision making revolves around the potential price of a flexible system that is designed to authorize selective discounting the sale of the staff. "Hide
by Rowland T. Moriarty Jr., David May, Gordon Schwartz Source: Harvard Business School 18 pages. Publication Date: November 14, 1985. Prod. #: 586059-PDF-ENG