The first step is to identify and diagnose the problem. Stan doesn't know if he should branch out into inline skating and ice skating is the issue here. The next step is to generate alternative solutions. Two possible solutions are to follow Williams' advice and venture into inline and ice skating, or to buy Williams' ownership stake in the company and run the company himself. The next step is to evaluate these two possible solutions. Venturing into inline and ice skating equipment is the riskiest decision, but it may also have the greatest reward. Despite the allure of a high reward, the name Eagle means nothing when it comes to inline and ice skates. They would lose a driving force in sales if they abandoned skateboards. Even looking at the company's history makes this decision unattractive. They have already had an unsuccessful expansion, and although the industries are different, this should be taken as a serious warning for future expansions. Buying Williams' stake would give Stan the freedom to run the company as he wants and avoid this risky venture and any that Williams suggests in the future. Stan could then focus on what the company is most successful at: skateboards. The downside is the cost to redeem it, but considering that Stan is