Product details

Faced with slow growth, PFS reached a critical decision point just two years after its initial public offering (IPO) raised $57 million. Expected to be a growth firm, performance has been affected by a shrunken dot-com market, a depressed economy, and the loss of its largest client. Efforts to reinvigorate marketing and sales have produced mixed results. Clients include major brand names firms, who are highly satisfied and the source of good references, but rapid growth remains elusive, operating losses continue, and cash reserves are dwindling. At the decision point in the case, efforts to secure capital through a merger failed. Mark Layton, Chief Executive Officer, must decide whether to ''bet the company'' on achieving the growth expected by stakeholders or abandoning, or at least postponing, expectations for rapid growth. Cutting back requires reducing growth capability and terminating some long-term associates and friends. Mark worries about the impact on morale and confidence in his leadership as he ponders the next step.