Question

In: Operations Management

Frank Pulley was the General Manager of Fred Arnold’s, “Arnold’s Moving and Storage”, a family-owned business....

Frank Pulley was the General Manager of Fred Arnold’s, “Arnold’s Moving and Storage”, a family-owned business. He had been with the company since he got out of high school. He worked summers and vacations to make money during his college years. The company had grown as did Frank. When Frank graduated from college with his degree in business management, he was given the job of Office Accounts Manager. He managed the money for the business. During the evening, Frank went to school and received his MBA in Finance. By then, Arnold’s had expanded to include long distance moving as well as office moves in the Mid-Atlantic area. The company was making over $3,000,000 in sales and was growing at a rate of 8% -10 % a year. Competition was strong in the Mid-Atlantic region so Fred wanted to expand southward. About this time, Fred’s son decided it was time to come back into the business. He had been working in IT in Miami. He liked Miami and felt he could work from there and bring the business down the Eastern Seaboard.

Frank had been with the business for 12 years now and felt that with Fred’s son now back in the business, it might be time to leave. Fred saw Frank at lunch one day shortly after Frank started looking for a new job. “Frank, I just heard that you are looking for a senior management position. In fact, I had to hear it from Janice Jeppy of all people. I ran into her at the bank. She says you applied to Jeppy Movers for a job and was wondering why you would want to switch moving companies. I am wondering too. Don’t you want to stay with us?”

Frank was surprised. The thought had never occurred to him. He assumed that Mr. Arnold’s son and daughter would take over the business. Both of Fred’s children had been working in the business since they were in high school. “I don’t want to leave Mr. Arnold,” Frank replied, “but I assumed that with Frank back in the business, he would take over. I just couldn’t see where there was room for advancement.” Fred was afraid this is what the boy would say. His son was bright and showed promise, but Fred knew they needed experienced people like Frank to keep the company moving forward. Frank was great support for the business and would be the best support that he and his son could have. Fred wondered how he could keep Frank in the business. “Come see me tomorrow at 10 a.m., Frank and we will talk. I can’t let you go to Jeppy Movers, can I”?

What Can Fred Arnold do to keep Frank now and in the future? Include in the discussion how the growth of the company will affect Fred’s ideas.

Also, address succession and Frank’s role in the business going forward.

Solutions

Expert Solution

Fred Arnold recognizes the experience and value that Frank brings to the company. The future generations of company will need guidance from such experience. Hence it is critical for the company to retain Frank.

Fred must conduct a one-to-one meeting with Frank to understand his aspirations and understand where he wants to see himself in the company in near future.

The experience and skill set of Frank qualifies him for senior leadership roles in the company. Fred must consult with the HR Head of the company and prepare a leadership development plan for Frank. The growth of the company will require the presence of experienced members like Frank on the board. Hence it is critical for the company to match his aspirations and retain him. Frank must be given more autonomy and decision making power so that he is able to participate in critical decisions about the business. The respect and empowerment will help in retaining Frank in the company.


Related Solutions

Learning Activity #1 Frank Pulley was the General Manager of Fred Arnold’s, “Arnold’s Moving and Storage”,...
Learning Activity #1 Frank Pulley was the General Manager of Fred Arnold’s, “Arnold’s Moving and Storage”, a family-owned business. He had been with the company since he got out of high school. He worked summers and vacations to make money during his college years. The company had grown as did Frank. When Frank graduated from college with his degree in business management, he was given the job of Office Accounts Manager. He managed the money for the business. During the...
3.11. Fred Jonasson manages a family-owned farm. To supplement several food products grown on the farm,...
3.11. Fred Jonasson manages a family-owned farm. To supplement several food products grown on the farm, Fred also raises pigs for market. He now wishes to determine the quantities of the available types of feed (corn, tankage, and alfalfa) that should be given to each pig. Since pigs will eat any mix of these feed types, the objective is to determine which mix will meet certain nutritional requirements at a minimum cost. The number of units of each type of...
IHRM in Action Case 2.1 Establishing a branch of a family business in China A family-owned...
IHRM in Action Case 2.1 Establishing a branch of a family business in China A family-owned carbon steel company from Germany has extended its business to Hong Kong. The owners bought a small traditional Chinese firm and decided to copy the successful structure they had developed at home. This struc- ture was headed by three general managers who equally shared the responsibilities for the business activities of the firm. The consequences were as follows. 1 Now the Chinese employees were...
Blue Whale Moving and Storage recently purchased a warehouse building in Santiago. The manager has two...
Blue Whale Moving and Storage recently purchased a warehouse building in Santiago. The manager has two good options for moving pallets of stored goods in and around the facility. Alternative 1 includes a 4000-pound capacity, electric forklift (P = $−30,000; n = 12 years; AOC = $−1000 per year; S = $8000), and 500 new pallets at $10 each. The forklift operator’s annual salary and indirect benefits are estimated at $82,000. Alternative 2 uses two electric pallet movers (“walkies”) each...
ABC Limited is a family owned business that has been in operation for the past ten...
ABC Limited is a family owned business that has been in operation for the past ten years. The company based in Kabwe manufactures one product: desks. ABC limited Managing Director, Mr. Aubrey Bwalwa Chuungu has been away on a business trip to China for the past three months. He is worried that the current outbreak of the Corona virus and the subsequent restrictions imposed on commerce by the Zambian government may have had adverse financial consequences for the company. You...
            Kiko Ltd is a family owned Asian grocery business that specialises in selling a variety...
            Kiko Ltd is a family owned Asian grocery business that specialises in selling a variety of Japanese products. The company has recently started to receive orders from hotels across the state. It is now 1 October, and Mr Seike, the owner, is very pleased with his growing business. He compiled data on the business’ revenue and purchases for the past three months, and prepared forecasts for the upcoming three months as shown below: Sales Revenue Purchases Actual data: July...
(law question). Fred Maxson owned Canadian Equipment Company. To operate the business, Maxson borrowed funds from...
(law question). Fred Maxson owned Canadian Equipment Company. To operate the business, Maxson borrowed funds from Cross Town Bank & Trust. For each loan, Cross Town filed a financing statement that included Maxson’s signature and address, the bank’s name and address, and a description of the collateral. The first loan covered all of Maxson’s equipment, including “any after-acquired property.” The second loan covered a truck crane “whether owned now or acquired later.” The third loan covered a “Bobcat mini-excavator.” Did...
A family practice that serves over 4,500 patients is owned by three brothers, all general practitioner...
A family practice that serves over 4,500 patients is owned by three brothers, all general practitioner medical doctors who have been closely watching how the new Patient Protection and Affordable Care Act (ACA or “Obamacare”) is developing, especially with the ongoing changes to the eligibilities of coverage for patients and reimbursements that now require their facility to change its systems and processes for compliance. As a healthcare consultant, you have been retained by the family practice to perform a thorough...
Scenario: A family practice that serves over 4,500 patients is owned by three brothers, all general...
Scenario: A family practice that serves over 4,500 patients is owned by three brothers, all general practitioner medical doctors who have been closely watching how the new Patient Protection and Affordable Care Act (ACA or “Obamacare”) is developing, especially with the ongoing changes to the eligibilities of coverage for patients and reimbursements that now require their facility to change its systems and processes for compliance. As a healthcare consultant, you have been retained by the family practice to perform a...
Read the following scenario. A family-owned business can have special complications. The line separating family relationships...
Read the following scenario. A family-owned business can have special complications. The line separating family relationships and legal responsibilities can be unclear. It is important for directors, officers, and owners of a family-owned business to be aware of the issues to avoid misunderstandings and unintended liability and to preserve familial relationships. You are a consultant advising a "mom and pop" grocery store owned by Jeff and Joan, a married couple, and their two adult children, Martha and Henry. The grocery...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT