Ivey Publishing
Procter & Gamble - Restructuring the Edible Oils Division
Product Number:
9A96B011
Publication Date:
05/14/1996
Revised Date:
02/05/2010
Length:
14 pages
Product Type:
Case (Field)
Source:
Ivey
The primary decision is whether Procter & Gamble (P&G) Canada should abandon one or more of the edible oil product lines. The secondary decision, conditional on the first, is the method of production. The alternatives include outsourcing the production to P&G's U.S. plant in Ivorydale, Ohio, or to outsource to a new Canadian facility which will also produce Tenderflake, the primary competitor of P&G's product, Crisco. The primary focus is on marginal benefits and costs. (A Microsoft Excel spreadsheet is available for use with this case, product 7A96B011.)
Learning Objective:
The objectives of this case are to teach students about: re-structuring to add value; incremental cash flows; investment analysis/capital budgeting; outsourcing.
Issues:
Disciplines:
Finance,  International
Industries:
Manufacturing
Setting:
Canada/USA, Large, 1991
Intended Audience:
Undergraduate/MBA
Price:
$5.30 CAD / $5.00 USD Printed Copy
$4.50 CAD / $4.25 USD Permissions
Associated Materials
Supplements: 7A96B011 (164 KB)
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