Submitted by: Submitted by breit
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Pages: 4
Category: Business and Industry
Date Submitted: 01/26/2013 09:05 PM
Zumwald AG
Background of the Case
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Managing Director: Rolf Fettinger
Zumwald AG produced and sold:
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Medical diagnostic imaging systems
Biomedical test equipment and instrumentation
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Company headquarters is in Cologne, Germany
It is organized into 6 operating division
Total Annual Revenues were more than 3B euroS
Highly decentralized organization
Partly vertical integrated
Background of the Case
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ISD, Imaging Systems Division; Managing Director: Conrad Bauer
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sold complex Ultrasound and MRI; selling at a price range of 500,000 to 1M euros
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Heidelberg, Heidelberg Division; Managing Director: Paul Halperin
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sold high-resolution monitors, graphic controllers & display subsystems
half of its sales were made to outside customer
ISD was one of Heidelberg s major inside customer
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ECD, Electronic Components Division; Managing Director: Christian Schonberg
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sold application-specific integrated circuits and subassemblies
originally established as a captive supplier to other Zumwald division, but in the last decade had found external markets for its products
Manufacturing Process
IMAGING SYSTEMS
DIVISION
ISD
HEIDELBERG
ELECTRONICS
COMPONENT
DIVISION
ECD
The Dispute
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In 2001, ISD designed a new ultrasound imaging system called X73
Heidelberg was compensated for the full cost of the time its employees spent on this project
After the specifications were set, ISD Managers solicited bids for the materials need to produce X73
Heidelberg was asked to bid to supply the displays needed for production
Two other outside companies participated
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Bogardus NV
Display Technologies Plc
The Problem
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After discussing the bids with ISD s management team, Conrad Bauer, ISD managing director have decided to buy its display systems fro Display Technologies Plc
Paul Halperin, Heidelberg s General Manager was...