Building Interiors

Abstract

Building Interiors (BI) with $18 million annual sales has been acquired by Lone Star Supply, another building material distributor. Lone Star's strategy is to leave top management of the acquired firm in place with the expectation of achieving a certain financial performance. BI has failed to do so. One BI top manager has resigned and a second has been demoted. A Lone Star senior manager with a reputation of being a "turnaround specialist" has been appointed BI’s top manager. The case explores this new manager's approach for achieving the required profitability level.