Sun Hydraulics, a 32-year global engineering hydraulics and manufacturing company with headquarters in Sarasota, Florida, poses a difficult choice because of the economic downturn in 2001. Leaders of the debate as to maintain the profitability and to reduce labor costs without destroying the innovation culture of the society, which is based on the idea of horizontal management and does not have a specific corporate hierarchy. This case includes a review of the company's history since its founding in 1970 to its IPO in 1997, and asks students to step into the shoes of Allen Carlson, Sun's president and chief executive officer, to recommend specific actions to reduce costs.
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by Linda A. Hill, Jennifer M. Suesse Source: Harvard Business School 24 pages. Publication Date: January 15, 2003. Prod. #: 403069-PDF-ENG
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