I. The Summary.
The text tells us about the situation which took place with one of manufactures of microcomputers in Cambridge, Compec Corporation. It has some serious financial problems according to slow sales of its primary product (the Comtec 100 Microcomputer) in both domestic and international market. The president of the Compec, Dr. Daniel Needham made a decision to hire a seasoned consultant, Ms. Roberta Malcolm, to suggest recommendations for saving the company. After studying the situation for a couple of weeks, Ms. Malcolm made three bold recommendations, which were rather difficult for the president and the vice-president for sales and marketing, Mr. Harry Otto, to agree with and to apply it immediately in business. The first one was to close down the Amsterdam office of sales which barely pays for itself. The second was to shift from a hardware to software emphasis, specifically, to begin producing IBM-compatible software for general-purpose laboratory/technical uses. The third suggestion to the company was to reverse the advertising strategy from heavy reliance on journal advertising and press releases to direct mail advertising and trade show exhibits. The Comtec targeted to such specific spheres as materials-testing automation and chromatography automation. According to the sales statistic the Corporation should in short time make urgent changes in its course of running business taking in account the consultant`s opinion. And as we can see from the internal correspondence between the president and the vice-president, the Compec is on a threshold of changes.
II. The Problem.
The difficult financial situation compels to revise the strategic development plans.
III. The Cast of Characters.
1) Dr. Daniel Needham - the president of the Compec Corporation 2) Mr. Harry Otto - the vice-president for sales and marketing of the Compec Corporation 3) Ms. Roberta Malcolm – computer consultant