Discussions:
There are five sets of strategic issues that have been identified and require attention, they are:
1. Increasing Profitability...What's the best approach toward meeting this objective?
2. Operational Efficiency - Clearly there are some operational issues that have been and/or remain to be addressed. What additional tactics such as compensation and benefit schemes, employee motivation and performance standards et al would you implement to further enhance operational efficiency. In terms of standards, consider how you might go about establishing them.
3. Franchising - Should they or shouldn't they? Best Western or Red Carpet or another?
4. Marketing plan implementation - consider the process of implementation and the timeframe together with various pitfalls and the need to evolve the plan.
5. Sell or hold - evaluate Gossen's offer of $800,000 in light of expected future cash flows and other considerations.