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For this Discussion, review this weeks Learning Resources. Consider the scenario in which you are the new Human Resources Director. How would you respond to the CEO who suggested the wait and see approach? Identify what data or different pieces of information you should gather before discussing this with the CEO. What next steps might you take?.

For this Discussion, review this weeks Learning Resources. Consider the scenario in which you
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GoPro had been among the best examples of how a company could create a new market based upon product innovations that custom(cid:2)ers understood and demanded. However, by late 2015, the action camera product niche appeared saturated. The company had grown from a humble beginning as a homemade camera tether and plastic case vendor in 2004 to an action camera vendor with $350,000 in sales in 2005 (its first full year of operation) to a global seller of consumer electronics with revenue of $1.6 billion in 2015. The company's shares had traded as high as $88 in October 2014, just months after its initial public offering (IPO) in June 2014. In 2014, GoPro was ranked the number one most popular brand on YouTube, with more than 640 million views and an average of 845,000 views daily. In 2015, average daily views were up to 1.01 million. Abruptly, in the third quarter of 2015, GoPro's magic disappeared, and by the fourth quarter of 2015, its revenues dropped by 31 percent from the prior year. In addition, its net income fell by 128 percent to a net loss of $34.5 million. By the end of December 2015, the stock traded at less than $20. By the end of December 2016, revenues had dropped another 27 percent to $1.2 billion from $1.6 billion in 2015. In addition, the company recorded a net loss of $419 million in fiscal 2016, helping drive its share price to less than $9.00 in December 2016. The company launched a turnaround plan in early 2017 and reduced its workforce in an effort to reverse its decline: first-quarter sales in 2017 increased by 19 percent from the first quarter of 2016, and its operating expenses declined by $50 million. Its adjusted EBITDA improved from an $87 million loss in the first quarter of 2016 to a $46 million loss in the first quarter of 2017. The HERO5 Black was the best-selling digital image camera in the United States in the first quarter of 2017, and GoPros drone Karma with the HERO5 camera was the number-two selling drone priced over $1,000 in the United States. After a recall of the Karma drone for flight failure, GoPro abandoned the drone business in early 2018. The number of camera units shipped in 2018 was flat, compared to the prior year, and the average selling price decreased which put downward pressure on the years revenue. The company announced another restructuring in 2018, which resulted in an additional reduction in the global workforce to below 1,000 by the end of the year, and continuing reductions in operating expenses. These efforts met with mixed results, and revenue continued to fall, dropping 2.7 percent from the prior year, and gross margin fell from 32.6 percent in 2017 to 31.5 percent in 2018. Operating expenses decreased from 46 percent of revenue in 2017 to 40 percent in 2018. Yet fiscal 2018 produced a loss of $109 million. The dismal trend in financial performance continued, albeit with a four percent uptick in revenue in fiscal 2019. GoPros 2019 gross margin increased to 35 percent, up from 31 per.

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