Prior to his arrival at Brand X, Jay had been the corporate controller for a contract manufacturing organization that specialized in plastic extrusion products.
Karl, however, believed Brand X would lose sales because of the extra time it would take to verify vendor pricing and double-check internally generated price quotations, so Jay's suggestions weren't implemented.
With progress being made and his optimism high, Karl was naturally dumbfounded when he opened a letter addressed to Brand X Company from the USDC.
Jay knew the costs associated with the tariff would place Brand X in violation of several debt covenants and severely restrict the company's cash flow well into the future.
Karl believed his tactic would disguise the shipment as wood instead of furniture, enabling Brand X to avoid the tariff because it wouldn't be importing wooden bedroom furniture.
Jay's presence at the audit seemed appropriate given his position as corporate controller of Brand X.
Jay had access to the data and information for the prototype headboard that Brand X manufactured during the contract negotiation, including engineered drawings and the costs of raw material, labor, and overhead.
If Jay presented what he thought was more accurate cost data, Brand X could receive hundreds of thousands of dollars in refunds from the USDC for previously paid tariffs.
Trying to push brand X's personality closer to that of brand Y (more down-to-earth, casual, simple) would be a lot more difficult than working on the brand's attitude and also risks the dissipation of key brand equities: Remember that good taste and style in personality go with a taste advantage that brand X is perceived to have.
The advertising for brand X had always been rather "narcissistic," showing just beautiful young women and admiring men--but never their families.