Morgan Components IESE MBA Case Report

Executive Summary:
The Director of the European Interior Components Product Line Team of Morgan Components Company, Sean O'Fearna is facing a difficult decision. He needs to respond to the price reduction request on a door panel project, which would take-off in six months. The initial contract was signed at a price of 90 euros between Asiacar and Plasticom. Morgan Components took ownership of the contract, as it acquired the Clondalkin plant of Plasticom.
The project was seen infeasible by Morgan Components executives, even before the price reduction. Therefore, first a unit based cost b…