Question

Case Study - Nathan Conyers

Directions:

1. Read the following case study: Conyers Case
2. Think about the facts of this case and answer the following questions:
   • Why did Conyers diversify its staff?
   • What possible problems might arise in a family-owned business that provides employment for the father and his children?
   • How is Detroit's socio-cultural environment affecting Conyers' management decisions?

Answer 1

Why did Conyers diversify its staff?

Conyers started off with African-American customers, but eventually Whites also started visiting the showroom and they used to check out stuff from the showroom, gather information and buy them elsewhere. The role of a salesman is to make the customers feel at home, assist with the product sale and ensure a wonderful shopping experience. Hence in order for Whites to feel connected with their brand, Conyers started hiring white sales staff and managers focusing on customer satisfaction and cost control, and marketing its service department to downtown office workers.

What possible problems might arise in a family-owned business that provides employment for the father and his children?

Family businesses are prone to creative differences, wherein every person might come up with a different idea leading to internal conflicts. Personal egos, individual interests and rivalries might be seen. Also, jealousy can play a big part in spoiling the business reputation if one person/a non-family member is given precedence over the other person. Quality issues might arise if a relative is recruited based on the relation and not his/her capabilities.

How is Detroit's socio-cultural environment affecting Conyers' management decisions?

Detroit, being Nathan’s birthplace, is close to him. It also offers lots of opportunities because of its economic conditions. It has 80% of African-American population, Nathan’s target audience. Hence Nathan is not very keen on moving to any other location.

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