Ultimate Value Measurement, Inc. (UVM) was founded in 1977 to fill a market niche for advanced optical measurement devices in the semiconductor industry. Clarence Tucker, CEO was reluctant to downsize an unprofitable UVM in 1998; however, he did so to keep expenses in line with revenues for his small company. His management style, family oriented UVM culture, one cash cow product line, ESOP format, and new customers in emerging markets kept UVM afloat. On December 31, 2004, cash flow was tight, employees were on reduced workweek and pay and hence he had mixed feelings about the impact of positive industry forecasts on UVM. He was convinced short-run survival was dependent on both cash flow management and development of new products. Tucker was lukewarm about holding another strategic plan meeting; however, he recognized they needed to do something different to survive and prosper in the long-term. The case concluded with Tucker planning for an early 2005 strategic plan meeting and unsure whether to focus the meeting on short term survival or new products to meet UVM's long term needs.
Available at: http://works.bepress.com/george_whaley/29/