Case-Study: Unit 11

To: zacksnyder@gmail.com
From: Andy
Subject: Suggestion for the strategy that our company has chosen

Dear Mr. Snyder

My name is Andy, I am the Chairman of Lina Sports.
Today I am writing this letter to summarize the company activities and inform you
about my final decision on the business strategy.
During the last three year, Lina Sports’s annual results have been disappointing.
Profits have fallen steadily while costs have risen, and competition in its main
markets.
After researching, we find that there are four main reasons for Linda Sport’s poor
results: launched too many product line, invested into many expensive
endorsement, suffered form fierce and most importantly, lost its reputation.
So we decided to change our CEO. Our company received three strategies form
candidates to bring its golden era back.
 Strategies 1 – We must give up its independence and merge with, or be taken
over by, a larger, financially stronger company.
 Strategies 2 – We should acquire a number of smaller companies and focus
more on making sports accessories.
 Strategies 3 – We should grow organically by revising its organization,
product ranges and making strategy.
Among these three suggestion, I decided to choose the potential “Strategies 3”
which will support the company to solve the problems we are facing. The main
content of this strategy will brings a lot of benefits.
First of all, in order to help the staff attain greater efficiency and to adapt to new
markets, the restructuring of the company is very important. Restructuring can be a
tumultuous, painful process as the internal and external structure of a company is
adjusted and jobs are cut. But once it is completed, restructuring should result in
smoother, more economically sound business operations. After employees adjust to
the new environment, the company is typically better equipped for achieving its
goals through greater efficiency in production. I see it as an effective way to
improve the working behavior and the style of management in the company as
well.
Secondly, we will take advantages of profit margin when we focus more on
developing products with revolutionary designs and higher price and reduce the
quantity of the products. To survive in the global competitive market, we should
create unique products that satisfy customer demands through differentiation. We
can also improve on existing products to make them more effective and attractive.
Last but not least, about the marketing strategy, we will reduce the company’s
endorsements of top sportspeople. Instead, it should pay well-known sportsmen
and women to advise the company on new products. This will lead to more product
innovation as well as help the company’s reputation. We should also create special
event or hold a press conference to keep good relationship with newspaper.
Please do not hesitate to give me your comment on my decision and I am looking
forward to hearing from you soon. Feel free to contact me at anytime if you need
further information or help.

Best Regards
Andy
Chairman of Lina Sports