The Vermont Teddy Bear Co., Inc.: the challenges facing a new CEOINTRODUCTIONVermont Teddy Bear Company was founded in 1981 by John Sorinto selling hand-sewn bears from a stroller on the streets of Burlington, Vermont. Since then, the company's goal has been to design, manufacture and directly market the finest teddy bears made in America using quality American materials and labor. Until 1994, Vermont Teddy Bear was very successful and profitable. Problems arose in 1995. Since 1995, the company has had two CEOs. She changed her name to The Great American Teddy Bear Company, then renamed it The Vermont Teddy Bear Company when customers became confused. The Vermont Teddy Bear Company was known for its Bear-Gram delivery service. In 1996, the company decided to transition from Bear-Grams to other distribution channels. In 1998, the company decided to re-emphasize Bear-Grams. Vermont Teddy has always prided itself on the fact that its teddy bears are made in America with American materials and craftsmanship. In 1998, the company changed this philosophy by exploring overseas sourcing of materials, equipment and manufacturing in an effort to reduce costs. In October 1997, Elisabeth Robert assumed the title of President and CEO and began to reduce costs and position the company. business for future growth.