Tdi Case

TDI is in a difficult financial position. The current business functions are not sustainable for the future operations. This memo highlights changes the company needs to make to continue as a viable business.

The current financial state of the Company is alarming and without drastic change the Company will become insolvent.

Strategically TDI is in a fair position although it has moved away from its core competency and as a result eliminated its competitive advantage.

Some of the strengths of the Company are: well diversified media forms, strong management by Apfelbaum, and opportunity in the Outdoor division. Despite these strengths the Company has been plagued by weaknesses highlighted by its deteriorating performance.

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Critical Strategic Moves

1. Management-led leveraged buyout on December 30, 1986.

2. Acquisition of "in-store" advertising displays known as Super Clock and New York advertising Company.

3. The sale of the company's outdoor properties to refinance the bank.

Principle Bets leading to Current Situation

4. Cash was kept on plan

5. No effect on the sales force's efficiency

6. The new acquisition and expense reductions would improve the profit a lot.

7. The financial projections would be realized for several years.

Value Chain

Competitive Environment

The environment of outdoor advertising is much more competitive. There are many big players in this industry that are international players compared with few even national players in the 1990s.The products are more diversified; the companies provide