The Report

Situation Analysis

Jackson had the trust of Thomas in Dawson’s Ltd, which is evident from
the facts that Thomas usually leaves action to him and also agreed to
meet Holmes, an opportunity brought-in by Jackson. It can also be
inferred that Jackson had a stronghold on both the buyer’s and seller’s
side. Moreover, Jackson did not want his position to be in jeopardy by
accepting Holmes’s offer for him to become the fifth director of the
company. While Thomas pointed out that there would be some conflict of
interest, it reflects that Dawsons Ltd was still interested in buying
products from Holmesafe. But Jackson, leveraged his role to signify that
he shall be able to put Holmesafe in a successful position despite
competition and is expecting benefits for the same. Already the demands
had been underestimated and moreover Holmes might have not been
aware of Brown’s advancements. This easily creates an opportunity for
Jackson to deceive Holmes and leverage the situation.

The Problem

Holmes needs to decide how to tackle Jackson’s stake in the business

and also make sure that the business with Dawson has not been
compromised.

The Options
 A. Holmes can contact the chief buyer, Thomas to understand the
problems better and make sure that the business with Dawson has
not been hampered.
B. Holmesafe can also approach other buyers for Dawson.
C. Holmes can negotiate a better deal with Jackson in terms of
commission or promise him better benefits in return for pushing
sales of Holmesafe products to Dawson.
D. Lie to Jackson saying that you have found better buyers for
Dawson but you have been sticking around only because of
friendship.
E. Help Jackson an alternate part-time job using your networks.

Criteria for Evaluation

Less risky; considering what’s at stake - Major share of income coming

from Dawsons Ltd. If the option selected is financially viable and
competitive advantage is maintained.

Evaluation of Options

Option A involves no money but is moderately risky considering that

Jackson may still be able to influence Thomas to go with Browns.

Option B involves the opportunity cost of finding a new buyer and

involves the risk of not being able to succeed or fetch the same
outcomes that Thomas & Jackson were able to provide.

Option C has no risk but comes at a cost, as your short-term profits shall
be lesser than usual. Anyhow, since a competitive advantage can be
reached through negotiation with Jackson, by signing a contract of
business and long-term benefits can be achieved. So, the immediate
effects can be overlooked.

Option D is highly risky, as the relationship may be affected. The

business as well as reputation may come under the hamper if the option
does not workout.

Option E is also less risky but it is a temporary solution and doesn’t

guarantee on long-terms.

The Recommendation

Homes should sign a two-year contract with Jackson to continue

his business with Holmesafe without going to any other
competitors, thereby increasing the sales percentage commission
by 2%. This will motivate Jackson to bring in more sales than
expected and also resolve his cash crunch.

Action Plan

Call for a meeting with other directors and secretary immediately. Inform
them about the prevailing situation and that the demand from Dawson’s
have been increased and is promising. Make them understand the
decision and seek suggestions regarding the benefits from the contract.

Contingency Plan
Exhibits