Tandy Brands Synopsis
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Tandy Brands
Tandy Brands Accessories, Inc. designs and markets fashion accessories for men, women, and children. “Their merchandise is sold under various national brand names as well as private labels to all major levels of retail distribution” (biz.yahoo.com, 2008). Over the last several years, they have experienced a reduction in value, reflected by their declining stock price. According to the CEO, JSB Jenkins, their business … “has continued to be impacted by the generally difficult conditions in the consumer marketplace” (biz.yahoo.com, 2008).
This decline in company value has triggered a move by Tandy Brands to attempt to streamline its operations and find cost-saving measures to employ. In 2007, Tandy decided to close its belt making operations in Yoakum, Texas and ship production overseas for less expensive labor costs. While the receiving, distribution, and administrative operations remained in Yoakum, 165 people were to lose their jobs. This presented management with the issue of which media choice to employ. Taking the complexity of the matter into account, the CEO decided to use face-to-face communication to announce the news. This rich medium was ideal because of the amount and type of data being transmitted.
Unfortunately for Tandy Brands, their stock value has not recovered as a result of the production move (A graph of stock prices over the last 3 years can be found on the last page of this reading). Recently, plans have been announced to take further steps toward realizing their growth goals. The company announced the closing of a distribution facility in Wisconsin during the third quarter of 2008. Tandy will also focus on improving its core business, diversify by pursuing new licenses and label programs, and restricting its management.
Many companies have issues relating to falling stock prices. Tandy Brands is certainly