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at are the expected growth rates of each segment? ? How badly damaged is the relationship with the specialty outlets? ? Are there alternative outlets to the specialty shops such as inter sales? ? How will this move affect overall utilization of the operating facilities? ? Maintain the mainstream and children’s segment, but sell under a different name Issues to consider in this approach: ? Is there demand among the mass and discount distributors for bicycles under their name? ? What additional advertising and promotions costs might be incurred? ? What are the expected growth rates of each segment? ? What is driving the buying habits of the mainstream and children’s market? ? Reduce costs through automation and innovation Issues to be considered: ? What technological improvements are to be made? ? What are the required investments? ? What are the expected returns on those investments? ? How will these investments affect throughput? ? To which lines are these investments appropriate? ? Are the mainstream and children’s segments potentially “overengineered”? ? What impact will this have on the required workforce levels? ? If layoffs are required to achieve the benefits, what impact will this have on labor relations? ? Reduce costs through establishing a formal preventive maintenance program Issues to be considered: ? What anizational changes will be required? ? What analysis will be performed to determine the appropriate amount of PM? ? What training is required of the workforce? ? What technical or system changes are required? ? How will the unionized workforce respond? Key takeaways: This case can prove to be lengthy and very involved. It is not expected that a candidate would cover all of the above topics, but rather work through selected topics in a logical fashion. It is important that the candidate pursue a solution that considers both revenue and cost issues to impact profit. Additionally, a conadidate’s ability to work fortably with the quantitative side of this case is important. The above remendations for improving profitability are just a few among many. The candidate may e with their own ideas.