Addie Picture Framing operates a plant in Sudbury. It began as a custom picture-framing operation, but that division (cu

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Addie Picture Framing operates a plant in Sudbury. It began as a custom picture-framing operation, but that
division (currently eight employees) has been unprofitable for the past two years. The company has a total staff of 132, and produces both wood and metal frames. The southern United States is its biggest market, followed by Great Britain and Japan. Western Canada comes next, with Central and Atlantic Canada 7th and 10th in importance, respectively. The U.S. market share is shrinking, because a competitor from Taiwan is using much more modern facilities and cheaper labour to provide a similar (if slightly inferior) product for less money. The raw material for the frames comes primarily from northern Ontario. However, some western Canadian plants use new technology to manufacture semi-finished pieces for the same cost as the raw materials Addie is buying and then finishing at its own expense. Addie’s main Canadian competitor, Frost Frames, located in Parry Sound, exports little and is in poor financial shape, despite having a much more
modern plant. For the past six months, Addie Frames has noticed a dramatic drop in sales and revenue. The
owner, who has lived in the area for over forty years, knows that decisions are needed, but is anxious to avoid the loss of jobs, if possible. Provide three suggestions for rationalizing this business, giving both the positive and negative effects of your suggestions.