Group Case Analysis
The Layoff
Submitted to:
Dr. Jim Wanek
MBA 517 – Human Resources
Report Prepared By:
Nick Fry
Sean Patton
Joe Runyan
Brad Tinker
September 29, 2016
BACKGROUND
Astrigo Holdings is the parent company for Astrigo Home Improvement Stores. Robin
Astrigo, CEO, is faced with a tough decision in order to increase profit margins and secure
earnings per share. Robin’s options to cut expenses and increase profits include: a layoff, an
across-the-board pay cut, utilizing cash savings, or selling off a division. Robin divided the
executive committee into teams to find solutions to the problem. The teams are comprised of
characters including Morris Meyers (Astrigo CFO), Lisa Warren (Head of Legal), Bob Slater
(Executive Director of Strategy), Marzita Vasquez (Head of HR), Julie Cox (Astrigo PR), and
Sushil Bhatia (VP of Marketing and Strategy).
Astrigo is facing a recession as well as an increasingly competitive landscape. Two of the
teams proposed a layoff to cut expenses, whereas some of the other executives examined the
impact of layoffs and speculated on the feasibility of a recent acquisition, Prugh Furniture. Robin
Astrigo and his team must find the best way to survive the current recession, uphold Astrigo’s
