The Indian Institute of Business Management & Studies

SUBJECT: General Management Marks:100

CASE – 1 Your Job and Your Passion—You Can Pursue Both!

The 21st century offers many challenges to every one of us. As more firms go global, as more
economies interconnect, and as the Web blasts away boundaries to communication, we become more
informed citizens. This interconnectedness means that the organizations you work for will require you
to develop both general and specialized knowledge—such as speaking multiple languages, using
various software applications, or understanding details of financial transactions. You will have to
develop general management skills to foster your ability to be self-reliant and thrive in a changing
market-place. And here’s the exciting part: As you build both types of knowledge, you may be able to
integrate your growing expertise with the causes or activities you care most about. Or, your career
adventure may lead you to a new passion.
Former presidents George H. W. Bush and Bill Clinton are well known for combining their
management skills—running a country—with their passion for helping people around the world.
Together they have raised funds to assist disaster victims, those with HIV/AIDS, and others in need.
Jake Burton turned his love of snow sports into an entire industry when he founded Burton
Snowboards. Annie Withey poured her business and marketing knowledge into her two famous
business ventures: Smartfood and Annie’s Homegrown. Both products were the result of her passion
for healthful foods made from organic ingredients.
As you enter the workforce, you may have no idea where your career path will lead. You may be
asking yourself, “How will I fit in?” “Where will I live?” “How much will I earn?” “Where will my
business and personal careers evolve as the world continuous to change at such a fast pace?” If you are
feeling nervous because you don’t know the answers to these questions yet, relax. A career is a
journey, not a single destination. You may have one type of career or several. It is likely you will work
for several organisations, or you may run one or more businesses of your own.
As you ask yourself what you want to do and where you want to be, take a few minutes to review
the chapter and its main topics. Think about your personality, what you like and dislike, what you
know and what you want to learn, what you fear and what you dream. Then try the following exercise.
Questions

1. Create a three-column chart in which the first column lists nonmanagement skills you have. Are you
good at travel? Do you know how to build furniture? Are you a whiz at sports statistics? Are you an
innovative cook? Do you play video games for hours? In the second column, list the causes or
activities about which you are passionate. These may dovetail with the first list, but they might not.

Ans:

Nonmanagement
skills Causes to passionate Comments

I am passionate about traveling and I am curious about when people developed a

exploring new places and have an
adventurous spirit, it is for these
reasons, and not because of
altruism, that I am interested in
Are you good at joining the Peace Corps. Is this
travel proper for me as an Objectivist?
Transforming ideas into fine
furniture. An idea; it is the
beginning of everything. Quality
and Company, Inc. is driven by
ideas. It is how we make furniture.
From a simple drawing or a few
words, we can visualize an original
and functional piece of furnishing.
How do we do this? First, we draw
upon over three decades of
expertise creating the finest in soft-
seating products. Next, we put the
worlds best building materials in
the hands of highly skilled
craftsmen. Finally, we ensure every
aspect of production exceeds
quality standards. The result:
Do you know how to Furniture that is more a reflection
build furniture of fine art than mass production.
long standing passion and what caused them to
become inspired by the topic/activity. Did you
discover it on your own or was it the result of
the modelling of others. Is there greater
motivation to act primarily for self improvement
or for the betterment of others?
That is an important component in everything
we do at Quality. The design and construction of
our products reflects what people need now- not
yesterday. And as tastes and needs evolve, so
will our products. We simply require an idea,
from there we will create a form that will
perform and function for you. It is that simple.
Quality is just a starting point; it is true that
quality is an essential part of everything Quality
and Company, Inc. does. But it is important to
remember that we offer customers much more.

I am passionate about sports
because it serves us an
entertainment, hobby, and exercise.
In entertainment, it brings us fun
and most especially it unite a
family, and even friends. This is
one way to make your love ones get
close to each other because this
serves us a time bonding for a
Are you a whiz at family. This could make your
sports statistics family become aware to sports.
I'M Passionate About Cooking I
love knowing how to cook because
if I have a craving for something, I
can do something about it. Also I
can make it the way I want. I never
measure anything when I cook. I
love the anticipation of getting to
eat my creation. I think to myself,
"this is going to be really good."
And it is. Few things satisfy you
Are you an like eating a good meal. It's
innovative cook something primal.
Yes, I am indeed a fanboy. I’m a
fan of everything involving the
video game world. Some things I
like less than others, that’s usually
all it is. Some games I have
absolutely no interest in, not
because it sucks, I just simply have
no interest in it at the time. My
preferred game tastes do change
from time to time. That doesn’t
mean I always refrain from saying
“that sucks.” lol It does happen
sometimes. Usually if I say “that
Do you play video sucks,” I’ll tend to follow it up with
games for hours “compared to…”
When I was young around ten years old, I try to
play basketball. I started for those simple
dribbles and then I try to shoot the ball into the
ring. I find it easy and every day I trained
myself to be more skillful. I watch Basketball on
television to know the moves on how they play
amazingly. They are good on dribbling and
shooting the ball. Not only those facts are
important in playing but also you have to
recognize the team work. This is very important
to win the game. With the help of your team
members the play becomes manageable. That is
why it is easy for the team to score.
 Most people who love to cook can trace their
passion back to a formative experience or a
friend or relative who instilled in them a
culinary passion. Share your story on how you
came to love cooking, what you love to cook,
and advice you'd share with other cooks.
I often end up in arguments with people over
video games. Mostly over whether or not they
“suck.” This is something I find myself getting
into more often than I’d like. I didn’t realize
what was happening, I never understood why I
kept finding myself in this predicament, why
everyone wanted to argue with me or of course
vice versa.
2. Once you have you two columns complete, draw lines between entries that seem compatible. If you
are good at building furniture, you might have also listed a concern about families who are homeless.
Remember that not all entries will find a match—the idea is to begin finding some connections.

Ans:

While the concern and support demonstrated by volunteer work and advocacy are essential, material
assistance is also a necessity.

Needed items and services might include:

 In-kind services and materials. Service providers may be able to use copying, printing, food,
transportation, marketing assistance, computer equipment and assistance, electrical work,
building materials, plumbing, etc.
 Household goods or other items. Service providers may need items such as kitchen utensils,
furniture, books, toys, games, stuffed animals, dolls, diapers, etc.
 Homeless “survival kits.” Create and distribute kits that include items such as cups, pots, pans,
soap, shampoo, toothpaste, toothbrushes, and cosmetics. (Try coordinating this through a group
that gives out meals from a van, for example.) During cold weather, organize drives for
blankets, coats, hats, scarves, mittens, socks, and the like.
 Support for a homeless person or family. As people move out of a shelter or transitional
housing program, consider raising money to contribute for a security deposit, or assist by
contributing household goods, babysitting, or moral support. See if your local shelter has a
partnering program.

3. In the third column, generate a list of firms or organizations you know about that reflect your
interests. If you are good at building furniture, you might be interested working for the Habitat for
Humanity organization, or you might find yourself gravitating towards a furniture retailer like Ikea or
Ethan Allen. You can do further research on organizations via Internet or business publications.

Ans:

Many organizations around the world dedicate their efforts to protecting human rights and ending
human rights abuses. Major human rights organizations maintain extensive websites documenting
violations and calling for remedial action, both at a governmental and grass-roots level. Public support
and condemnation of abuses is important to their success, as human rights organizations are most
effective when their calls for reform are backed by strong public advocacy. Below are some examples
of such groups.
Globally, the champions of human rights have most often been citizens, not government officials. In
particular, nongovernmental organizations (NGOs) have played a primary role in focusing the
international community on human rights issues.

NGOs monitor the actions of governments and pressure them to act according to human rights
principles.
CASE – 2 Biyani – Pioneering a Retailing Revolution in India

“I use people as hands and legs. I prefer to do thinking around here.”

─ Kishore Biyani, CEO & MD, Pantaloon Retail (India) Ltd.

Kishore Biyani (Biyani), CEO& MD of Pantaloon Retail (India) Ltd., planned to have 30 Food Bazaar
outlets, 22 outlets in Big Bazaar, 21 Pantaloons outlets, and four seamless malls under the Central
logo, by the end of 2005. He also planned to launch at least three businesses every year and had
already selected music, footwear and car accessories as his next areas of investments. He was already
the top retailer in India followed by Raghu Pillai of RPG. As of 2004, Biyani headed a company that
had a turnover of Rs 6,500 million and operated 13 Pantaloon apparel stores, 9 Big Bazaars, 13 Food
Bazaars, and 3 seamless malls (Central), one each located in Bangalore, Hyderabad, and Pune.
Biyani’s journey from a person who looked after his family business to India’s top retailer in 1987,
when he launched Manz Wear Pvt. Ltd. The company launched one of the first readymade trousers
brands – ‘Pantaloon’ – in the country. The company also launched its first jeans brand called ‘Bare’ in
1989. On September 20, 1991, Manz Wear Pvt. Ltd. went public and on September 25, 1992, it
changed its name to Pantaloon Fashions (India) Limited (PFIL). ‘John Miller’ was the first formal shirt
brand from PFIL.
The company opened its first apparel stores, called ‘Pantaloons’ at Kolkata in August 1997. The
stores generated Rs 70 million. Biyani then realized the potential of the Indian market and started to
aggressively tap it. Accordingly, Biyani decided to expand into other segments of retailing besides
apparel. To reflect this change in focus, the company changed its name to Pantaloon Retail (India)
Limited (PRIL) in July 1999 and set itself a target of achieving Rs 10 billion in sales by June 2005. In
course of time he launched three other retail formats -- Big Bazaar, Food Bazaar, and Central.
Biyani didn’t believe in copying ideas from western retailers. He was critical of his peers who felt
just copied ideas form the west without making any effort to mold them to Indian conditions. He
ensured that his store formats such as Big Bazaar, Food Bazaar, and Pantaloons were all suited to the
purchasing style of Indian consumers.
Biyani was a huge risk taker and his planning was always different from the conventional way of
doing business. This was also one of the factors that had prompted Biyani to move away from his
father’s conventional way of doing business. During the initial stages of his success, his risk-taking
attitude sometimes had the effect of turning away financiers. The biggest risk that Biyani took was in
opening Big Bazaar in Mumbai in 2001. The company needed money to expand Big Bazaar’s
operations. However, it had profits of only Rs 40 million with a low share price at eighteen rupees.
Therefore, Biyani could not raise money through equity. In light of this situation, Biyani took a loan of
Rs 1,200 million from ICICI for launching the operations of Big Bazaar, which increased his debt
exposure. However, Big Bazaar proved to be a resounding success with 100,000 customer visits in its
first week of operations. According to analysts, if Big Bazaar had failed, Biyani would have landed in
a severe debt crisis. The success of Big Bazaar not only increased the company profits, it also changed
the perception of investors.
Many people criticized Biyani for not delegating authority and Biyani himself accepted the
criticism. He said, “I use people as hands and legs. I prefer to do the thinking around here.” He
preferred taking individual decision on activities like strategic planning, ideas for other ventures, and
other important issues. It was because of this that managers like Kush Medhora of Westside were
initially apprehensive about joining Biyani’s business. However, Biyani changed his attitude gradually
with the launch of Big Bazaar, Food Bazaar, and Central and appointed different people for managing
different business units.
 Biyani believed in leading a simple life and in being simply dressed. His vision came from his
diverse reading connected to retailing and other areas. He made it a point to visit each of his stores
across the country. He aimed to spend at least seven hours a week at the stores. In the stores, he would
stand at a corner and observe people. He also walked on streets, met common people, and talked to
local leaders to plan and put up new products in his stores. Each of his stores was set with a weekly
target, which was reviewed every Monday. Whenever a new store was opened, the details of its
operations during the first 45 days were to be sent to him. Sometimes, he suggested remedies to some
problems. Biyani believed in extensive advertising to make more people know about the product. His
decision making was quick and devoid of unnecessary delays. Biyani was also a good learner and
learned quickly from his mistakes. He planned to improve inventory management through responding
effectively to the demands of the customers rather than forecasting them, as he felt that forecasting
would pile up the inventory in this dynamic market.

Questions

1. The tremendous success of the ‘Pantaloons’, ‘Big Bazaar’ and ‘Food Bazaar’ retailing formats,
easily made PRIL the number one retailer in India by early 2004, in terms of turnover and retail area
occupied by its outlets. Explain how Biyani is further planning to consolidate his businesses.

2. “Our striving toward looking at the Indian market differently and strategizing with the evolving
customer helped us perform better.” What other qualities of Kishore Biyani do you think were
instrumental in making him top retailer of India?

CASE – 3 The New Frontier for Fresh Foods Supermarkets

Fresh Foods Supermarket is a grocery store chain that was established in the Southeast 20 years ago.
The company is now beginning to expand to other regions of the United States. First, the firm opened
new stores along the eastern seaboard, gradually working its way up through Maryland and
Washington, DC, then through New York and New jersey, and on into Connecticut and Massachusetts.
It has yet to reach the northern New England states, but executives have decided to turn their attention
to the Southwest, particularly because of the growth of population there.
Vivian Noble, the manager of one of the chain’s most successful stores in the Atlanta area, has
been asked to relocate to Phoenix, Arizona, to open and run a new Fresh Foods Supermarket. She has
decided to accept the job, but she knows it will be a challenge. As an African American woman, she
has faced some prejudice during her career, but she refuses to be stopped by a glass ceiling or any
other barrier. She understands that she will be living and working in an area where several cultures
combine and collide, and she will be hiring and managing a diverse workforce. Noble has the support
of top management at Fresh Foods, which wants the store to reflect the surrounding community—in
both staff makeup and product selection. So she will be looking to hire employees with Hispanic and
Native American roots, as well as older workers who can relate to the many retired residents in the
area. And she will be seeking their inputs on the selection of certain food products, including ethnic
brands, so that customers know they can buy what they need and want a Fresh Foods.
In addition, Noble wants to make sure that Fresh Foods provides services above and beyond those
of a standard supermarket to attract local consumers. For instance, she wants the store to offer free
delivery of groceries to home-bound customers who are either senior citizens or physically disabled.
She wants to be sure that the store has enough bilingual employees to translate for and otherwise assist
customers who speak little or no English. Noble believes that she is a pioneer of sorts, guiding Fresh
Foods Supermarkets into a new frontier. “The sky is almost blue here,” she says of her new home state.
“And there’s no glass ceiling between me and the sky.”

Questions

1. What steps can Vivian Noble take to recruit and develop her new workforce?
Ans:

The first step Vivian can take, the most critical for success, is secure top management support. By
getting the leadership to support the program the rest of the company will follow suit. A great way for
the leadership to show their commitment to the program, inside the company and outside, is by
incorporating it into to their mission statement and their strategic planning. The next Vivian should
take is establishing an ongoing assessment of the organizations culture, policies and practices in the
areas of recruitment, promotions, benefits and compensations. Vivian can establish Standard
operating procedures for each of these areas and these standard operating procedures should be living
documents so they can be changed when problems are identified and fixed through the assessment.
The third step Vivian should take creating an effective recruitment program to attract a diverse group
of employees. Some things that can be offered is accommodating work and family, offering
alternative work arrangements, competitive salaries and wages. Vivian should also establish a diverse
training program to train the employees, to educate and develop their skills and identify hidden biases
and reduce them. Finally, Vivian needs to establish a retention program to keep turnover at a
minimum. This can be done through support groups, career development and promotions, systems
accommodation and accountability. An effective retention program will save the company money and
retain an excellent diverse workforce.

2. What other ways can Noble help her company reach out to the community?

Ans:

Vivian can help the company reach out to the community through several ways. Vivian can establish
a program or section which sole purpose is to determine ways to give back to the community and
execute.

If you’re a business owner that’s in the position to help, reach out to your community. Those contacts
you build up every day of the week? Use them. Use their knowledge and expertise. Offer them contract
work.

You don’t even have to worry about advertising costs. Use the tools that you’re using to make these
connections in the first place.

 Put a call out on Twitter. If you see someone doing this, re-tweet it.
 Write a blog post about who you need and why (or have a Skills Needed page with your current
requirements).
 Use your LinkedIn connections.
Yes, going local is always preferable and should be your first port of call. But that’s not always an
option, which is where your community comes in.

We often count on our community for so many things. How about helping them out at the same time
we count on them?

3. How will Fresh Foods Supermarkets as whole benefit from successfully moving into this new region
of the country?

Ans:

We are in the business of providing naturally delicious foods of the freshest and highest quality, as
well as a full array of other choices for healthy living. New Frontiers is a place where people come to
make changes that will improve the quality of their lives. Therefore, we strive to keep a special energy
in our stores – an energy of cooperation, harmony, and service.

New Frontiers’ Mission: The Desire to Inspire

At the heart of New Frontiers is the desire to inspire personal growth and positive change. We do this
by providing healthy choices, by educating ourselves and others, and by creating a delightful
experience. We embrace every opportunity to improve the quality of life in our relationships, in our
communities, and in our world.
Together, we can make a difference by enhancing everyone’s well-being one person at a time.

CASE – 4 The Law Offices of Jeter, Jackson, Guidry, and Boyer

THE EVOLUTION OF THE FIRM

David Jeter and Nate Jackson started a small general law practice in 1992 near Sacramento, California.
Prior to that, the two had spent five years in the district attorney’s office after completing their formal
schooling. What began as a small partnership—just the two attorneys and a paralegal/assistant—had
now grown into a practice that employed more than 27 people in three separated towns. The current
staff included 18 attorneys (three of whom have become partners), three paralegals, and six secretaries.
For the first time in the firm’s existence, the partners felt that they were losing control of their
overall operation. The firm’s current caseload, number of employees, number of clients, travel
requirements, and facilities management needs had grown far beyond anything that the original
partners had ever imagined.
Attorney Jeter called a meeting of the partners to discuss the matter. Before the meeting, opinions
about the pressing problems of the day and proposed solutions were sought from the entire staff. The
meeting resulted in a formal decision to create a new position, general manager of operations. The
partners proceeded to compose a job description and job announcement for recruiting purposes.
Highlights and responsibilities of the job description include:
  Supervising day-to-day office personnel and operations (phones, meetings, word processing,
mail, billings, payroll, general overhead, and maintenance).
 Improving customer relations (more expeditious processing of cases and clients).
 Expanding the customer base.
 Enhancing relations with the local communities.
 Managing the annual budget and related incentive programs.
 Maintaining annual growth in sales of 10 percent while maintaining or exceeding the current
profit margin.

The general manager will provide an annual executive summary to the partners, along with specific
action plans for improvement and change. A search committee was formed, and two months later the
new position was offered to Brad Howser, a longtime administrator from the insurance industry
seeking a final career change and a return to his California roots. Howser made it clear that he was
willing to make a five-year commitment to the position and would then likely retire.
Things got off to a quiet and uneventful start as Howser spent few months just getting to know the
staff, observing day-today operations; and reviewing and analyzing assorted client and attorney data
and history, financial spreadsheets, and so on.
About six months into the position, Howser became more outspoken and assertive with the staff
and established several new operational rules and procedures. He began by changing the regular
working hours. The firm previously had a flex schedule in place that allowed employees to begin and
end the workday at their choosing within given parameters. Howser did not care for such a “loose
schedule” and now required that all office personnel work from 9:00 to 5:00 each day. A few staff
member were unhappy about this and complained to Howser, who matter-of-factly informed them that
“this is the new rule that everyone is expected to follow, and anyone who could or would not comply
should probably look for another job.” Sylvia Bronson, an administrative assistant who had been with
the firm for several years, was particularly unhappy about this change. She arranged for a private
meeting with Howser to discuss her child care circumstances and the difficulty that the new schedule
presented. Howser seemed to listen half-heartedly and at one point told Bronson that “assistance are
essentially a-dime-a-dozen and are readily available.” Bronson was seen leaving the office in tears that
day.
Howser was not happy with the average length of time that it took to receive payments for services
rendered to the firm’s clients (accounts receivable). A closer look showed that 30 percent of the clients
paid their bills in 30 days or less, 60 percent paid in 30 to 60 days, and the remaining 10 percent
stretched it out to as many as 120 days. Howser composed a letter that was sent to all clients whose
outstanding invoices exceeded 30 days. The strongly worded letter demanded immediate payment in
full and went on to indicate that legal action might be taken against anyone who did not respond in
timely fashion. While a small number of “late” payments were received soon after the mailing, the firm
received an even larger number of letters and phone calls from angry clients, some of whom had been
with the firm since its inception.
Howser was given an advertising and promotion budget for purposes of expanding the client base.
One of the paralegals suggested that those expenditures should be carefully planned and that the firm
had several attorneys who knew the local markets quite well and could probably offer some insights
and ideas on the subject. Howser thought about this briefly and then decided to go it alone, reasoning
that most attorneys know little or nothing about marketing.
In an attempt to “bring all of the people together to form a team,” Howser established weekly staff
meetings. These mandatory, hour-long sessions were run by Howser, who presented a series of
overhead slides, handouts, and lectures about “some of the proven management techniques that were
successful in the insurance industry.” The meetings typically ran past the allotted time frame and rarely
if ever covered all of the agenda items.
Howser spent some of his time “enhancing community relations.” He was very generous with
many local groups such as the historical society, the garden clubs, the recreational sports programs, the
middle-and high-school band programs, and others. In less than six months he had written checks and
authorized donations totaling more than $25,000. He was delighted about all this and was certain that
such gestures of goodwill would pay off handsomely in the future.
As for the budget, Howser carefully reviewed each line item in search of ways to increase revenues
and cut expenses. He then proceeded to increase the expected base or quota for attorney’s monthly
billable hours, thus directly affecting their profit sharing and bonus program. On the other side, he
significantly reduced the attorneys’ annual budget for travel, meals, and entertainment. He considered
these to be frivolous and unnecessary. Howser decided that one of the two full-time administrative
assistant positions in each office should be reduced to part-time with no benefits. He saw no reason
why the current workload could not be completed within this model. Howser wrapped up his initial
financial review and action plan by posting notices throughout each office with new rules regarding the
use of copy machines, phones, and supplies.
Howser completed the first year of his tenure with the required executive summary report to the
partners that included his analysis of the current status of each department and his action plan. The
partners were initially impressed with both Howser’s approach to the new job and with the changes
that he made. They all seemed to make sense and were directly in line with the key components of his
job description. At the same time, “the office rumor mill and grape vine” had “heated up”
considerably. Company morale, which had been quite high, was now clearly waning. The water
coolers and hallways became the frequent meeting places of disgruntled employees.
As for the marketplace, while the partner did not expect to see an immediate influx of new clients,
they certainly did not expect to see shrinkage in their existing client base. A number of individual and
corporate clients took their business elsewhere, still fuming over the letter they had received.
The partners met with Howser to discuss the situation. Howser urged them to “sit tight and ride out
the storm.” He had seen this happen before and had no doubt that in the long run the firm would
achieve all of its goals. Howser pointed out that people in general are resistant to change. The partners
met for drinks later that day and looked at each other with a great sense of uncertainty. Should they
ride out the storm as Howser suggested? Had they done the right thing in creating the position and
hiring Howser? What had started as a seemingly, wise, logical, and smooth sequence of events had
now become a crisis.

Questions

1. Do you agree with Howser’s suggestion to “sit tight and ride out the storm,” or should the partners
take some action immediately? If so, what actions specifically?

Ans:

In fact, Howser’s suggestion seems to be unreasonable, taking into consideration the fact that he has
already provoked a severe crisis within the company. To put it more precisely, his actions have
provoked the deterioration of relationships within the company, the schedule did not meet employees’
needs and expectations and Howser’s policies provoked a number of other problems. In such a
situation, the partners should fire Howser and start changes in the company. The main point of changes
is the improvement of the organizational culture. In such a situation, the partners should focus on the
improvement of relationships within the company. The company should return to the flexible schedule
and provide employees with larger autonomy and freedom in their initiatives. Furthermore, the
company should focus on the improvement of the performance of its affiliates in other cities. In
addition, the company should focus on the maintenance of customer loyalty. For instance, the company
should provide customers with the possibility to postpone payments, if they cannot afford payment at
the moment. In fact, it is more important for the company to retain loyal customers than to receive
payments at the moment. Even if the company suffers from some financial losses, the company will
retain customers. At the same time, the company should maintain positive relations with the local
community but not through the sponsorship or charity. Instead, the company should offer consulting
services for local community members and develop educational programs for children living in the
local community. For instance, each Saturday, an employee of the company can teach local children. In
such a way, the company will improve internal atmosphere and organizational culture, regain customer
confidence and loyalty, and improve relationships with the local community.

2. Assume that the creation of the GM—Operation position was a good decision. What leadership style
and type of individual would you try to place in this position?

Ans:

The transformational leadership style would be effective for the company because such leadership style
would provide the company with essential flexibility and democracy in leadership. Instead, Howser
developed authoritarian leadership style which did not work effectively. Instead, the transformational
leadership style could maintain positive relationships within the company. The leader would help
employees working in the company to improve their performance and guide them in their work.
Moreover, a transformational leader would explain employees the purpose of changes and contributed
to better understanding of purposes and outcomes of changes in the company. Therefore, employees
will be certain in their future and they will support the change.

3. Consider your own leadership style. What types of positions and situations should you seek? What
types of positions and situation should you seek to avoid? Why?

Ans:
In fact, I am inclined to democratic leadership style. I would try to develop positive, friendly
relationships with employees. I would attempt to listen to each employee and take into consideration
his or her position. At the same time, I would try to communicate the strategy of the company to
employees working in the company. In fact, I would try to introduce the position of GM but I would
also create a board, which could control and direct the work of the GM. In such a way, the
management of the company would be more effective, while I, as a leader, would facilitate the
communication within the company.

CASE – 5 The Grizzly Bear Lodge

Diane and Rudy Conrad own a small lodge outside Yellowstone National Park. Their lodge has 15
rooms that can accommodate up to 40 guests, with some rooms set up for families. Diane and Rudy
serve a continental breakfast on weekdays and a full breakfast on weekends, included in the room they
charge. Their busy season runs from May through September, but they remain open until Thanksgiving
and reopen in April for a short spring season. They currently employ one cook and two waitpersons for
the breakfasts on weekends, handling the other breakfasts themselves. They also have several
housekeeping staff members, a groundkeeper, and a front-desk employee. The Conrads take pride in
the efficiency of their operation, including the loyalty of their employees, which they attribute to their
own form of clan control. If a guest needs something—whether it’s a breakfast catered to a special diet
or an extra set of towels—Grizzly Bear workers are empowered to supply it.
The Conrads are considering expanding their business. They have been offered the opportunity to
buy the property next door, which would give them the space to build an annex containing an
additional 20 rooms. Currently, their annual sales total $300,000. With expenses running $230,000—
including mortgage, payroll, maintenance, and so forth—the Conrads’ annual income is $70,000. They
want to expand and make improvements without cutting back on the personal service they offer to their
guests. In fact, in addition to hiring more staff to handle the larger facility, they are considering
collaborating with more local business to offer guided rafting, fishing, hiking, and horseback riding
trips. They also want to expand their food service to include dinner during the high season, which
means renovating the restaurant area of the lodge and hiring more kitchen and wait staff. Ultimately,
the Conrads would like the lodge to open year-round, offering guests opportunities to cross-country
ski, ride snow-mobiles, or hike in winter. They hope to offer holiday packages for Thanksgiving,
Christmas, and New Year’s celebrations in the great outdoors. The Conrads report that their employees
are enthusiastic about their plans and want to stay with them through the expansion process. “This is
our dream business,” says Rudy. “We’re only at the beginning.”
Questions

1. Discuss how Rudy and Diane can use feedforward, concurrent, and feedback controls both now and
in future at the Grizzly Bear Lodge to ensure their guests’ satisfaction.

Answer :

Feedforward control is defined in the text as the process used before operations begin,
including policies, procedures, and rules designed to ensure that planned activities are carried
out properly. The Conrad's will benefit from feedforward control upon expanding their
business when it comes to training both old and new staff. If specific guidelines are provided
that reference exactly how Rudy and Diane wish for operations to be carried out the likely
outcome will be successful. Involving current employees in the development of the policies,
procedures, and rules will empower them in the future to properly handle situations upon
entering the expansion. The control process is defined as plans that are being carried out,
including directing, monitoring, and fine-tuning activities as they are performed. Concurrent
control will most likely be best practiced in the form of information technology. The Conrad's
can utilize information technology to be in constant control of budget. The Conrad's can use
information technology to make adjustments in day-to-day operations. For example, if the
lodge is not expected to be at full capacity there is no reason to staff all of the employees
during that period of time.
 Feedback control is defined as performance data that has been gathered and analyzed
and the results are returned in order for employers to make corrections. The Conrad's are
seen as empowering employers yet there is stillroom for feedback control in the form of
correcting improper performance of an employee. For example, if an employee treats a guest
dissatisfying to the Grizzly Bear Lodge standards and Diane and Rudy address and correct the
problem immediately this would be an example of feedback control. Another example of
feedback control can occur in the form of surveys. Upon a guest's exit the lodge can distribute
a survey to better gain an understanding of the positive and negative aspects of their resort.
The survey can also include a place for suggestions in what the guest would like to see as
addition to the lodge.

2. What might be some of the fundamental budgetary considerations the Conrads would have as they
plan the expansion of their logic?

Describe how the Conrads could use market controls plans and implement their expansion

Answer :

Fundamental budget constraints are financial limitations that the Conrads must
consider when implementing their new expansion. It is evident that there is going to be an
initial large capital cost of purchasing the adjacent property and building the annexure. The
purchase is considered a one off capital expense and therefore can easily be accounted for
once a contract is exchanged, the building however is variable as it can be considerably
influenced if more labour, supplies or changes are needed.

In the long term the Conrads must consider the running costs and other overheads that
more property demands. There will be additional utilities, insurance and rates expenses
associated with ascertaining more property.

The main issue is and always will be with a business's largest expense, wages. With the
expansion and need to continually develop the customer experience and satisfaction, new
employees will need to be hired, developed and instructed how to perform up to the Grizzly
Bear Lodge lofty standards. This will mean that the retained staff may also need continued
development and also a pay rise to keep them happy.

Nevertheless, the expansion, from a financial standpoint may actually be more beneficial
due to economies of scale theory, in which the costs per square metre will decrease, as there is
more land to spread the costs over.
 In order for the Conrad's to expand their lodge they should take a few fundamental
budgetary considerations into account. For starters, an estimate of what they predict sales
and expected income to be. Time is another factor that must be considered when configuring
their budget. The Conrad's must decide the length of their determined budget whether that be
one, three, six months or a year. Because the lodge has different expenses per season the
Conrad's should set up separate budgets for separate times of the year depending.

Marketing controls 'help monitor progress toward goals for customer satisfaction with
products and services, prices, and delivery' (Cliffnotes, 2011).

Marketing controls are paramount to the successful implementation of their new

expansion. These controls will foster the marketing plan so that it can be successful in gaining
awareness, bringing in customers, ensuring quality and retaining customers for repeat
business.

The only way I see that they can use Market controls is to offer a competitive price for th
eir lodging services compared to nearby competitors.  If they can rent out rooms and offer
excursions at a considerably lower price than some let’s say 4 or 5 star resorts nearby that
would be their market control strategy.

By completing market research, test research and marketing statistics of the target
market (would be customers at the lodge) the Conrads will fully understand the customer,
what the customer wants and how they want it, allowing for them to produce a service that
not only satisfies the customer, but make them want to talk about the service.