Question

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 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”?

Learning Activity #2

How might Arnold’s son attempt to engage the business in the Miami community to solidify the company’s move southward?

Explain how small businesses and community support is important to business sustainability?

Answer 1

Q1) Below is how Arnold's son can attempt to engage the business in the Miami community to solidify the companys move southward -

1. By doing a market research in the Miami and other southern states to understand the customer requirements and preferences, the competition in the markets, the estimated market for moving and storage logistics etc.

2. By working with senior executives like Frank in understanding the business in terms of current operations, the financial performance, how the competition is being handled, how the resources are being managed etc.

3. Understanding the existing issues in the business to avoid the same in the new units.

4. The market entry strategy to enter the new markets which can be to establish its own units, acquisition or merger, joint venture or strategic alliance etc.

Q2) Below is how small businesses and community support is important to business sustainability -

1. Business can sustain longer in a market when it satisfies all of its stakeholders which include its customers, community or public, government, employees etc.

2. Community support can result in goodwill which helps the firm secure a clean brand image that encourages customers to prefer the products or services of the firm thus resulting in increase of revenues.

3. Small businesses work as dealers, distributors or partners for the larger businesses which can acquire or partner with the former to create a win-win situation for both businesses.