Based on its internal and external challenges, Xerox’s chief strategist Jim Firestone proposed three solutions with various flaws.
- Immediately implement divestment and significant cost-cutting decisions but retain R&D expenses and sales field and service expenses to restore Xerox’s brand image, credibility, and market share.
- Significantly reduce R&D, product development, filing sales, and service expenses to restore stable financial performance, regardless of its long-term impact.
- Follow the advice of outside advisors to file for Chapter 11 bankruptcy and initiate an aggressive turn-around plan to extricate from the $18 billion debt which lingered on every decision.
