ABSTRACT
Ealing Electrical Appliances was a relatively autonomous subsidiary of a large caravan group, and made luxury caravans. It had been acquired in 1965, when the parent company was seeking to diversify its activities. While variable cost per caravan produced was roughly constant as output increased, the industry was capital intensive and the scale of production large. Home sales of caravans by British firms rose to a peak in 1964 when they were 93% above the 1961 level. Ealing therefore had an up-to-date market assessment available to it when devaluation took place. No extra market information was obtained before Ealing took its decisions, though after they had been taken Ealing's agents were asked to assess their likely effects on sales. In view of a desire to take the devaluation decisions quickly it was not thought worth collecting more information before they were taken.
