You are the Assistant Vice President of Carpetbagger's Chemicals, a sixty-year-old company that provides chemicals used to produce and install indoor and outdoor carpet. Your company has thrived on a "good old boy" network based on relationship selling and personal delivery using a fleet of company-owned, light-utility trucks driven by members of your sales force. 

Recently, your competition is threatening from several directions. Other chemical companies, using national and regional transportation carriers and Internet sales, are offering faster turn-around and lower prices. In addition, carpet made in Asia and Australia is gaining in popularity in the United States. Sales have been down for three years, and costs continue to rise.

The board of directors of Carpetbagger's Chemicals recently hired a new president to help turn the company around. He has determined that it is necessary to create radical change to make Carpetbagger's Chemicals profitable again. These changes will ultimately affect the very culture of your organization. There are three (3) top priorities for the new president.

1. Retool the sales force to be more aggressive.
2.  
3. 2.  Move delivery of products from the sales force to independent national transportation carriers (which will negate the need for the fleet of light utility trucks for the sales force).
4. 3.  Produce a new, international sales division to explore marketing Carpetbagger's Chemicals to carpet makers in other countries.
5. Develop a plan to support this new strategy through human resources.

Answer rating: 100% (QA)

The turnaround strategy is a retrenchment plan followed by a company when it discovers that the decisions made earlier were wrong and affect the profitability of the business resulting in consistent l... View the full answer