TRAPS: Watch out! This question can derail your candidacy faster than a bomb on the tracks - and just as you are about to be hired.
Reason: No matter how bright you are, you cannot know the right actions to take in a position before you settle in and get to know the operation's strengths, weaknesses key people, financial condition, methods of operation, etc. If you lunge at this temptingly baited question, you will probably be seen as someone who shoots from the hip.
Moreover, no matter how comfortable you may feel with your interviewer, you are still an outsider. No one, including your interviewer, likes to think that a know-it-all outsider is going to come in, turn the place upside down and with sweeping, grand gestures, promptly demonstrate what jerks everybody's been for years.
BEST ANSWER: You, of course, will want to take a good hard look at everything the company is doing before making any recommendations.
Example: "Well, I wouldn't be a very good doctor if I gave my diagnosis before the examination. Should you hire me, as I hope you will, I'd want to take a good hard look at everything you're doing and understand why it's being done that way. I'd like to have in-depth meetings with you and the other key people to get a deeper grasp of what you feel you're doing right and what could be improved.
"From what you've told me so far, the areas of greatest concern to you are." (name them. Then do two things. First, ask if these are in fact his major concerns. If so then reaffirm how your experience in meeting similar needs elsewhere might prove very helpful).