To set a strategic plan for Able, we need to make an assumption about the goals of senior management. Either the company is going to be turned around in order to resist the takeover or it us going to improve the situation in order to become more attractive. The basic difference between these two strategies is the decision to cut costs or make investments. Because of the difficulty in turning employee morale around if the acquisition is going to go through, we will assume that the company is strategizing to avoid the buyout.
The first strategic decision is to concentrate its efforts on one market. The company is not large enough to compete across the full range of power tool products. Because of the high profit margins and the lack of any domi
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