Here is a post off another board, the overall concept of which could easily apply to just about any situation, Araldica included.:
Subject: CEO search
Date: Thu, Apr 9, 1998 11:28 EDT
From: CAMRCM2
Message-id:
People get confused easily and get away from basic ideas that work. If XXXXXX's products could talk, they'd probably say, "We know what we're doing. Why don't you?"
First, resources are scarce. Don't waste them on expensive and nebulous advertising campaigns. I'm not saying not to advertise, but the cost has to be reasonable and you have to have some specific expectations from it.
Second, customer relations are important, as well as investor relations. Listen to the customers. Make them happy. This is also a form of advertising, albeit not as flashy. The company should also be trying to "restructure" its relationship with investors, both individual and institutional. Just be simple and honest. It's not so hard once you do it.
Third, these production delays must be dealt with. Perhaps this new guy from YYYY has some ideas. If he doesn't, I'm sure many could be culled from the rank and file. A company that doesn't listen to customers or investors probably doesn't listen to its workers, either. Management is the "general" that has to integrate the "specifics" that they can provide. Profit sharing would not be out of line here.
Finally, I don't like the pricing structure. Lowering prices and spending a lot on advertising seems like a contradiction. I think the company has a good product(s) that is well liked. Giving it away is a bad idea. Spending money with advertising to give it away is a worse idea. Even McDonald's and Taco Bell have been raising their prices, and they're more likely, with their product line, to benefit from the type of advertising that XXXXXX has been doing.
Prices should be competitive, but we're not running a Home Depot, here. As new products are introduced, I would be increasing margins. That reminds me of their OEM situation. If the company is going to offer lower prices to the manufacturers, they should get something for it, like a relatively long term relationship. One that would allow for inventory control. Remember, customers like our product. It's us they don't like.
That's it. Theory is simple, execution is not. Just do it. Stay on target.
P.S. After reading the reasons that the Fool bought XXXXXX, and believing that none of the things I suggest are going to happen (The company is willing to go without a CEO for 9 months), I am with the group that wonders why the Fool still holds XXXXXX.
Rick M. |
