This case presents Harlequin in 1979 at the peak of its success. The company is looking at diversification, trying to use its ever increasing cash flow. Specific issues are the type of diversification (if any) the company should engage in, and whether it should set up its own sales force in the U.S. The general issue is one of accurately identifying Harlequin's capabilities. This case should be used, although it is not strictly necessary, with the Harlequin Enterprises Limited - 1984 case 9A87M003.
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