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.