Organizational Research & Theory
12 ) A large U .S . company operated in several businesses , including computers , disk drives , financial services , and defense satellites . Each division was self-contained . However , due to an economic downturn and changing market conditions , the company sold its non-core businesses of financial services and defense satellites in to focus only on computer-related products . However , after making these sales , its costs were still high . What was the problem and how can it be resolved
Economic downturn restricted future purchases of the products thus , the economical value of the services was not as high as [banner_entry_middle]
the other products Customers of the non-core businesses needed the services no matter what economical issues had arisen so the company lost a valuable asset after they sold . The company should have kept all of their businesses during the downturn in to prosper afterwards
The company must reduce the current pricing of their computer services in to boost sales and increase the company ‘s profits . Justified markings can attract the former consumers back to the business to continue their working relationships . The company ‘s overall objective should be re-branding their services so the clientele can experience more from their company without feeling bad due to higher pricing . The computer services can come in service packages for the institutional clients who many need more than the average individual . This company can benefit from the overall re-arrangement of their services to capitalize on profits , reduce debt , and develop equilibrium
The customer base should grow substantially by their altering services discounts , and packages to a new ideal target . The institutional markets are a guarantee change in sales forecast , but may turn sour if their competitors have majority of the share . The inflation of the economy is one obstacle that can be overthrown through fierce re-evaluation of the company ‘s assets , profits , and ability to adapt to the conditions . More work is critical , but the significant changes within the company ‘s infrastructure can do the trick to get the company back on its feet Their attempt to market their services to more lucrative or needy clients is one step from salvation of their current position
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