u Introduction
             Executone Information Systems, based in Milord, Connecticut, which designed and marketed telecommunications products for small-and medium-sized businesses, has become a major telecommunication company competing with AT&T and Northern Telecom since 1988. Because of economic recession in 1993, many companies had to change their product strategy to overcome this unbreakable situation. Not only the largest company in this business area such as AT&T decided to lower price and revenues, but also Executone reduced its profit margin since it had recently overhauled healthcare communication system that was malfunctioning after installation. With this current situation, even though Executone showed slightly incremental Return On Sale from 0.4% in 1991 to 1.2% in 1992 in its Annual Report, this was not yet its great appreciation. After facing this crisis, Alan Kessman, the president of Executone Information Systems, questions its future business that it would be able to conquer with its rivals in the market. To achieve the highest degree of success in this industry, Kessman wonders whether any mid-course adjustment should be implemented.
             u Alternatives
             1. Continuing every product with more advertisement and introducing promotion campaigns
             2. Dropping non-system telephone hardware
             3. Dropping healthcare system and making some changes in its organization
             u Analysis of each option
             Continuing every product line on the market by putting more advertisement and introducing promotion campaigns is not the best solution in helping Executone to become successful in this situation since there were some flaws from this approach. With adopting its strategy, the company could gain more sales, resulting in increase in return on investors. However, this approach would definitely not only cost the company a huge amount of expense but also impact on its overall profit. Furthermore, by implementing all of current company products, the to...