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Publication Date: March 01, 2009 Astrigo is in trouble. The house improvement chain has skipped its earnings forecast terribly and profits are falling. A 10% reduction in staff members appears like the only option. Layoffs, however, would undermine the retailer's longtime motivation to staff and the ability to offer its famed customer care. But tapping money reserved for strategic acquisitions goes versus the business's values, far too. What ought to the CEO do? Four professionals touch upon this fictional case study in R0903A and R0903Z. Board advisers Laurence J. Stybel and Maryanne Peabody, of Stybel Peabody Lincolnshire, recommend that the corporate borrow a page browse around these guys from McDonald's and declare Astrigo's intention to give attention to the passions of extensive-expression shareholders. This transfer would create a framework that will assistance management make tactical decisions with more clarity and flexibility. The corporate could then use its cash to order somewhat time and energy to study the choices.

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