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Diversified Electronics Corporation
Sack, Robert J. Case C-2279 / Published January 28, 2008 / 10 pages.
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Product Overview

In a 1998 spin-off from Global Electric Corp, the Diversified Electronics Corporation had been given two families of products: The Air Control Group included a variety of devices to manage the composition of the air in controlled situations, and the Health Care Group included pace makers and hearing aids. Subsequent to the spin-off, management decided to push beyond these initial products so that the company now had its own version of a GPS system and had other consumer-oriented products in the pipeline.


Learning Objectives

Cost allocation among business units Strategic direction of business units

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  • Overview

    In a 1998 spin-off from Global Electric Corp, the Diversified Electronics Corporation had been given two families of products: The Air Control Group included a variety of devices to manage the composition of the air in controlled situations, and the Health Care Group included pace makers and hearing aids. Subsequent to the spin-off, management decided to push beyond these initial products so that the company now had its own version of a GPS system and had other consumer-oriented products in the pipeline.

  • Learning Objectives

    Learning Objectives

    Cost allocation among business units Strategic direction of business units