Paul Hong, the owner of International Industrial Adhesives, Inc., is elated about the recent performance of his business but cautious about future prospects. Revenue and profit growth exceeded forecasts while expenses remained below the general level of inflation. He attributes the success to the introduction of new adhesive products, increased global demand, usage of outsourcing to focus resources, and strategic deployment of information technology. His elation about recent performance is tempered by future prospects. The success of his business has attracted new competitors focusing on his most profitable customers and products. The credit crunch and economic slowdown may trim revenues while the rising price of raw materials especially petroleum may squeeze profit margins. The payback from costly new industry initiatives for electronic commerce is uncertain. As a newly formed public corporation, government regulations will significantly increase reporting and compliance costs. Despite the recent success of his business, he remains cautious about new directions to ensure continued growth of his business.