Case study

XYZ Company is a small manufacturing firm producing widgets. Over the past three years they have experienced a decline in sales and profits. You are a business consultant tasked with analyzing their situation and recommending strategies to improve performance.

Provided: Financial statements for the past three years. Market research data showing trends in customer preferences. Information about competitors.

Questions:

1. Analyze the financial performance of XYZ company over the past three years. Identify key trends and areas of concern.
2. Based on the market research data, what are the main factors contributing to the decline in sales?
3. Recommend at least two strategies that XYZ company can implement to improve their sales and profitability. Justify your recommendations with reference to business concepts and the provided data.
4. How can XYZ company differentiate itself from its competitors? Suggest specific actions they can take.