Product Overview

Asea Brown Boveri, Mannheim, is considering the purchase of an East Berlin manufacturer of turbines from the Treuhandanstalt. It is an opportunity to start in East Germany and to work for markets in Eastern Europe. Low productivity, high pollution, potential inability of Eastern customers to buy, and little information on the value of the company all make the opportunity very risky. Students evaluate the fit of this business within company strategy and evaluate whether the deal should proceed.