Signode Industries' packaging division manufactures steel and plastic strapping. Three Decades Ago the business experienced the greatest utilized buyout in U.S. corporate history. The case focuses on the packaging division's need to maintain high profitability in the lowering industry for steel strapping. Since 1974, Signode remains losing 1% every year in the steel strapping market. Ever since then, there has been significant erosion of costs. The division leader is faced with lowering cost to enhance business, or maintain/increase prices to enhance earnings. The specific decision requires the possibility adoption from the cost-flex system that's designed to authorize selective discounting with the division's sales personnel.
Introduction & Problem Identification
Strategic Alternative 1
Strategic Alternative 2
Strategic Alternative 3
Recommended Action Plan