(1) In the beginning of the case McGraw thinks he has "never encountered such a complex business challenge" as the one he currently faces. By the end of the case, after he has read the ideas listed in the four memos, McGraw can’t believe he ever thought the investment issue was "going to be a hard one." What changed the president’s perspective? What strategic decision-making process does McGraw pursue? In the first instance, McGraw thought that the problem in his Division was so complex and did not know what direction to take in his upcoming Strategic Plan presentation to his boss. After reading all the memos sent by his managers, he got many ideas on how to tackle the issue. The strategic decision making that he took was to carefully read the ideas conveyed in the four memos prepared by these managers, weigh the pros and cons of these ideas, and then put his conclusions together to formulate his strategic plan. (2) If McGraw chooses a strategic direction that favors only one department, what negative effects could this have on other departments? How can McGraw mitigate the damage? If McGraw would use a strategy that favours only one department, the brands of the other departments would lose. Sales for the other divisions would also decline probably causing a consequent collapse and closure of these divisions as suggested by Eric Stanger, VP on OM products. The foundation of the OM brand, for example was eroding rapidly due their attempt to underwrite the new line of LR trademarks. It would also cause a slippage in value and trust among their customer franchise and a decline in sales and share. To mitigate the damage, McGraw would also need to pump finance into the advertising and promotion of the other divisions and not only LR or any other single division, for that matter.

(3) What effects is the change in the strengths and weaknesses of competition having on