(14 pages of text)
1998; 1997; 1996
The CEO of IPL Inc., was reassessing his company's policy regarding involvement in custom-molded plastic products. A leader in the Canadian injection molded plastics industry, IPL had traditionally relied on proprietary products rather than the manufacturing-on-order of custom products for other firms. However, since 1984 IPL had been supplying custom-molded auto parts for the Ford Motor Company and had recently been offered a contract to manufacture a large volume of additional parts for them. Having only one month to respond to Ford's offer, the CEO was concerned about how he should proceed.
This case is principally intended for use in a strategy formulation section of a Business Policy course. The business offer discussed in the case is used as a basis for strategic analysis of the development alternatives available to the firm, in relation to the firm's competitive environment, its management preferences, and particularly its resources. The case also illustrates a situation where a successful regional firm has to decide whether, to what extent, in what manner, and over what time frame it should venture outside its traditional and somewhat protected market.
Canada, Medium, 1988
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