SUMMARY
Once Louis Steiner establishes a furniture-producing company with his sons. After
the death of Louis, his son – Morris – takes the responsibility of managing the
company and takes the opportunity of selling the small father’s workshop to buy a
modern factory on the outskirts of London. Things are going well, but the increase
in production costs and strong competition are the points of concern for Gamma
Furniture LTD. Later, Morris decides to recruit a young designer to improve the
company’s situation. He offers Danny Schaffer a position, who helps to rehabilitate
the growth of the company. At the moment Danny wills to leave and run his own
business with his own ideas.
THE PROBLEM
How to keep valuable labor force and efficient ideas within the company?
CAST OF CHARACTERS
Morris Steiner – the CEO of Gamma Furniture LTD
Louis Steiner – ex CEO of Gamma Furniture LTD and father of Morris
Danny Schaffer – young designer of Gamma Furniture LTD
Shareholders – others
CHRONOLOGY
1.
2.
3.
4.
Danny decides to leave GF LTD and run his own business
Period of disappointment and Danny’s recruitment
Morris becomes CEO, GD LTD expands
Establishment of Gamma Furniture and Louis death
ISSUES
1. Danny’s decision to leave the company to run his own business
2. Danny thinks that he can build something innovative with his own ideas and
resources
3. The unstable situation at Gamma Furniture LTD
OPTIONS
1. To ask Danny not to leave the company and to rank him up to COO
2. To let Danny organize his project within the company
1. Advantages:
Danny can help Morris to handle Gamma Furniture LTD situation. Danny is
under control of Morris and Morris can see every Danny’s step.
Disadvantages:
Danny feels his influence and he can try to depose Morris.
2. Advantages:
To give Danny an opportunity to run his own project in order to implement his
innovational ideas within the company and not to lose a valuable employee.
Disadvantages:
Danny can feel himself a boss and plan to run his own business/project in other
company.
RECOMMENDATION
I do not recommend to promote Danny to the COO of the company. At first, the
most reasonable thing is to talk to him and get him to understand that he can
realize his ideas within Gamma Furniture LTD. So, in this case, Morris Steiner can
give Danny Schaffer a project of realization his “craziest” ideas.
PLAN OF ACTION
Step I:
To talk to Danny Schaffer convince him that he can succeed in implementing his
ideas without leaving Gamma Furniture LTD.
Step II:
To give Danny a project (Unit Five Furniture) under the supervision of Morris’s
right hand.
Step III:
To talk to Danny about the company’s current state and discuss the main goal of
GF LTD with him.
Step IV:
To listen to Danny’s terms and come to a consensus.