Final answer:
Kane can address declining profits by gathering information from customers, finding expert information, and conducting a root cause analysis to make informed decisions on production, pricing, facilities, workforce, and product offerings. Taking initiative and improving time management are also key to motivating the team and recovering profitability.
Step-by-step explanation:
To address the challenge of declining profits, Kane could begin by gathering information from customers and other stakeholders to understand their needs and preferences better. This could highlight certain trends or areas for improvement that may not be immediately apparent. Additionally, Kane should engage in finding expert information to gather insights on industry best practices and innovative compensation models.
Conducting a comprehensive root cause analysis is crucial to identify the underlying issues causing the decline in profits. Once Kane identifies the issues, strategic decisions regarding whether to expand or reduce production, set the price levels, open new factories or sales facilities, or make changes to the workforce such as hiring or layoffs can be made with more precision. Furthermore, exploring options for selling new products or discontinuing underperforming ones is important.
Finally, it is important for Kane to recognize that taking the initiative in times of declining profits is valuable. Proactive measures include improving work priorities, time management, and contributing to the team with additional projects that can address the profitability concerns. Encouraging this behavior in the workforce, especially among salespeople who may need motivation beyond traditional commissions, can lead to innovative approaches to driving sales and profitability.