Schindler Lee Co Ltd (SLC) is headquartered in Waco, Texas. The company which manufactures pipelines and other commodities for the oil industry was very successful for many years. However, over the last two years there has been a significant reduction in its profit margins and the value of its common stock has fallen by nearly 30%. A new plant that is under construction for the last 18 months and scheduled for completion in another six months has been experiencing delays and might not be completed for another eighteen months. It has been suggested that this project be abandoned and a new venture undertaken in its place.This new undertaking is likely to cost the company twice the amount of the existing project but could be completed also in twelve months.

A ten million dollar bond which the company holds matured last year and SLC has not encashed it. The funds are still in the custody of the bond issuer. The chief financial officer has also decided to evaluate projects based on profits in order to paint a brighter picture to the company's board of directors.

Recently SLC has been hit with a series of bad publicity. It all began with a sex scandal involving a senior executive of the company, Hart Meyer.It does not appear that Mr Hart was punished by the company as he still occupies a senior position in the company and SLC has made no public statement about the matter. The matter is still under investigation by the police as it involved under age boys. However, the popular sentiment is that SLC is engaged in a cover up operation with the police.

Following that, a newspaper report chronicled what was considered several years of maltreatment of immigrant and undocumented workers by SLC. To compound the issue, frequent leaks in gas pipelines supplied by SLC have been reported and many of its customers have expressed concern.

What management changes to recommend and why to make the comapany more profitable?