McDonagh had just completed his first year as president and COO. He realized that Brøderbund had achieved recognition as a major player in what had become an intensely competitive , dynamic consumer software industry. Increasing sales of multimedia personal computers and continued demand for interactive CD-ROM titles had pushed the company’s fiscal 1995 second quarter earnings far in excess of Wall Street analysts, expectations. Brøderbund’s stock had closed the previous day at 53.25 rising to an all-time high of 56.00 per share in after-hours trading. Yet McDonagh knew that many observers and analysts disagreed to what extent Brøderbund could sustain its early leadership in the industry ; whether it could continue to attract the “ critical mass ” of managerial, financial, technical, and marketing capabilities necessary to compete; and how he , as president and COO, would be able to address and overcome any barriers to growth.