Harris Inc

Earnings are stable by stagnant at 4-5% a year. We have a venture capital shortage which means new products will require venture capital or internal cost cutting. We are considering a new product and basically have 3 options for moving forward.

1.In order to launch a new product line, we will cut costs, seek venture capital and lay off approximately 50 workers, If the new line is successful, our profits will increase to 10-12%, in three years. Independent sources rate the likelihood of success at 60% but our internal analysis is less confident estimating only 50% likelihood of success.

2.A recent study of organizational efficiency efforts determined that new production techniques, better materials procurement and enhanced marketing could increase profits by an additional 6-7% in three years.We could finance these improvements from existing earnings without layoffs.

3.Given that we are profitable we could simply continue current operations and not make changes

Perform either a SWOT or 5 Forces analysis based on the option chosen