Examines policy Siemens "for pricing of products transferred between production and sale of units of Electric Works Motor, where both are profit centers. It is unique in that the organizational relationship between the value of the product and transfer pricing system will be highlighted. Issues raised center around the behavior induced by the system Transfer pricing in combination with each manager's incentive to increase the division of profits. addition, students will have the opportunity to discuss the feasibility of a system of transfer pricing and the structure of the profit center organization. "Hide
by Karen H. Wruck Source: Harvard Business School 10 pages. Publication Date: October 20, 1988. Prod. #: 189090-PDF-ENG
Related Case Solutions & Analyses:
The GSK Scandal: When Questionable Global Practices Met Imperfect Institutions in Emerging Markets
Empowering Female Micro-entrepreneurs through Education: Raising Half the Sky in Just Three Hours
The Globalization of the NFL
ABB: “In China, for China”
Cola Wars Continue: Coke and Pepsi in 2010, Chinese Version
La Fageda
Entrepreneurship in a Harsh Business Climate: Reform-Era Vietnam
Worker Rights and Global Trade: The U.S.-Cambodia Bilateral Textile Trade Agreement
Writing Cases and Teaching Notes
How to Manage Client Entertainment in China
