MultiBrands is a globally successful consumer products company, which has built up a reputation based on Honesty, Quality and Innovation. Since it started operating ten years ago, it has launched at least two new, high-quality products in a diferent markets every year. However, manager are currently reviewing company police because a recent dramatic fall in profits and share price performance.
Shareholders believe that this is due to over-diversification, rising costs and mailing consumer confidence as a resulto f complains that products quality is declining. Sharholder recommendations are:
***Freeze current policy of developing new products
***Concentrate on consolidating curren successful brands
***Improve quality or reduce price
***Freeze recruitment but avoid layoffs
***Reduce current budget by 15 per cent
Decision
Reduce the current budget would lower the quality of the products in equal proportion and this is one of the main complaints of consumers, which would lead to increasing dissatisfaction and a decline in sales, on the other side could freeze the policy of creation of new products in this manner is driven products with which the company analyze its strengths and weaknesses to take advantage of every one of them what potencializaría the sale of existing products, and the budget with which states would go with improvements of these products or the performance of new campaigns, not to create new, these strategies to avoid making a cut in staff which will allow us to maximize the staff with that account, assigning activities and working together with managers, in charge of each department and subordinate staff.
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