Executive Summary
The company, Bestco, was doing well for several years by their president until he expanded on more business and hired of more staff personnel. Troubles began to emerge when he could not handle managerially due to time constraints and the arrival of new staff members. His vision and focus for his company became blur and could not identify the problems of the company. The company is starting to collapse because his staff members have lack of motivation to work for him.
Situational Analysis
Bestco is headed by a retired teacher who does not have much business experience. Since the company was doing well, the president decided to expand the company for taking more businesses and recruited more staff. After the expansion, the president found himself overwhelmed and constantly without time as more business and new staff arrived. He did not have time to hire a new bookkeeper and he began to start to do bookkeeping by himself.
English: Logo of the China-based recruitment compa...
Company Business Movie Poster
English: Company president Leroy A. Lincoln presen...Since he had poor bookkeeping skill, the company was not getting its payments and was unable to pay its vendors, which led to vendors not cooperating with deliveries or essential products. The president's attitude had changed because of the decline of the business and productivity of the company. He became reactive. He was always angry and felt stressful. He stopped attending staff meetings and discontinued his policy of individual supervision. He began to fire and re-hire staff over the past year. The impact of this situation affected the staff's morale and confidence because they constantly had to argue with their clients and vendors, had to look after other's job as well after one quit the company. The remaining staff members felt they were abused and resentful. This crisis created the lack of motivation to work for the president and Bestco started...