I am supposed to put find solutions to turn around a wooden toys producer with a 35-years history which is currently losing money. It has two factories, around 330 employees in total. It is producing trains, puzzles, action figures and micro furniture; sales have been growing  for action figures (by 63%, to 8 million), have exploded for puzzles (170%, to 1.5 million) and micro-furniture (74%, to 21 million), but have decreased by almost 60% (from 24 million to 10.5 million) on wooden trains (which is the business line with most employees), so because of that the sales turnover figures has been flat in the last two years (41.5 million). Two of the production lines (puzzles and action figures) are only operating at 75% capacity on account of market demand. All direct costs have increased (transportation&warehousing 2.7 million, materials 16 million, staff costs 11.2 million), as well as the indirect ones (mostly marketing - 2.8 milllion and R&D - 2 million). Hence, EBITDA-wise the company shifted from 4.2 million profit to 2.6 million loss in 2 years. There are two business opportunities to be taken into account: (1) the steadily growing demand for micro furniture can no longer be accomodated in the existing factories on account of lack of space, there is another factory that can be acquired for that purpose but that implies a 1.7 million investment. (2) one of the major international toy producers is interested in partnering with the company (even taking it over, at a later stage), but that implies immediate cost reduction measures and 1.3 millon investment in upgrading the equipment for the new type of toys to be produced (wich wil take at least 8 months). R&D requests 20% more money and 2 more employees, while the train factory asked for 1 million investment for upgrade. There is an union threatening to strike on account of the overtime which has started in the micro-furniture production, and of the rumours of a 15% staff cost reduction requested during the next 2 years (saving necessary to finance mandatory training, recruitment and salary increases). I am requested to come up with an immediate list of actions to be taken, as well as a 3-year strategy.