Management Consultation: Improving Financial Performance

The scenario presented by the prompt here concerns a company that we will refer to as a Silly Putty, Inc. Charged with the responsibility of producing industrial-sized barrels of Silly Putty for distribution to packaging plants on a multinational level, the company finds itself at a cross-roads. As a managing consultant, I have been brought on board to help the company navigate the most difficult point in its long and storied history. With commodity costs rising and revenues suffering in the face of a global recession, Silly Putty, Inc. must make difficult decisions concerning its future.

As the discussion here considers whether survivability is a possibility -- and if so, under what conditions -- it is necessary conduct a concise environmental scan. For Silly Putty, Inc., the environment is defined by three overarching factors. The first of these is its basic set of cost inputs,...
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