ABSTRACT
As Pierre Legrand stared at the stained glass windows of his posh Paris office, his thoughts drifted towards the future of Legrand Shipping, the firm he controlled and managed. On that sunny morning of June 1979, he wondered what actions he should take to improve the company’s financial situation. 1977 had been a barely profitable year, and 1978 showed a substantial loss. (Exhibits 13.1 and 13.2 show balance sheets and income statements, respectively.) The outlook for 1979 seemed also unfavorable.
