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Intelligent Signals Inc Case Solution

Solution Id Length Case Author Case Publisher
1852 497 Words (3 Pages) Harlan D. Platt
This solution includes: A Word File A Word File

Intelligent Signals Inc (ISI) is in deep trouble, and there is essentially no hope to revive the business, if the high technology slump continued with the same pace. The company has lost most of its liquidity, and is in high debt with the bank. The only way out for the company is the Mike comes up with a plan to break even for as long as possible, and hope that the industry starts to recover as soon as possible.

Following questions are answered in this case study solution

  1. Is there a way for Mike to save the business? Prepare a plan if you think so.

  2. Was there a problem in how IS hired workers?

Case Analysis for Intelligent Signals Inc Case Solution

1. Is there a way for Mike to save the business? Prepare a plan if you think so.

Mike’s plan to save the business is through workforce layoffs. During the late 1990’s, the company had started to hire additional and unnecessary workforce. After the slump, ISI started to lay off its workforce as the sales had fallen drastically, and all the production was handled by one of the four operational plants. 

Just the workforce layoffs will not convince the board of directors to keep the company in the market. Workforce layoffs are essential at the present because most of labor is not working at all; there are no new orders placed, and only repairs and maintenance on the old orders is being done at the present. The workforce of 723 is more than in excess of what should be. Mike should go for massive layoffs of about 30-35% of the current employees to keep the company at break even by reducing the costs. In addition to the work force layoffs, Mike should consider selling one manufacturing plant if not two. The sales are stagnant and extremely low, and only one plant can handle any new orders that are placed in this scenario. Mike should consider selling off one or two of the company’s plants to further reduce the costs.

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