Case Analysis: Company has been experiencing problems and has hired you to provide insight and possible resolutions. Based on your SWOT analysis what do you recommend?

Sales have begun to lag. An inspection of the company warehouse reveals boxes and boxes of unmoved merchandise especially womens and teens jeans of various designs. Jean sales have always generated the most revenue for Company. When shelved they move fast.

Company was started by Melissa and her sister Mandy. They received a loan from their parents. The parents gave them the loan contingent upon them hiring their younger brother, Clyde. Clyde has not exhibited the best business sense and is generally not liked by other personnel. In the last 3 years he has shirked responsibilities with the excuse that he gave the orders but other people didnt follow through. Melissa and Mandy would like to preserve family harmony since Clyde is their parents favorite.

Company machinery is woefully outdated and production could be improved through technologic improvements. However, cash reserves are low. Company has a good credit rating.

Joanna has approached Melissa and Mandy about forming a partnership with them. Joanna wants to expand her product line through the company. Her line of belts and other accessories has been very profitable over the last three years. Joanna has a reputation for cutting edge innovations. Her company also has substantial cash reserves.

Company faces an IRS audit. Clyde has been responsible for keeping the books for Company. This is Companys first audit. It is not sure if Clyde can handle an audit.