Filmore Case 1

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Filmore Case Study

Case synopsis
Filmore Furniture is company that produces colonial maple furniture, incorporated by Fred Filmore in 1970. The company later was sold to his son Phil Filmore who was an innovative strategist in the business and introduced new designs and marketing strategies. From 1983-1993 Phil achieved over 5 million in sales for the business, but due to the highly competitive furniture industry profits remained low. In 1999 Phil died from a car accident leaving his entire estate to his wife Lucinda which included 63 percent of the company’s shares. Lucinda has no background in operating the business as she was previously a stay at home mother, however there are many colleagues of Phil who are giving her advice and tips
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3. Hire a senior, experienced manager from a competitor to be in charge of the company.
4. Mrs. Filmore will run the company and learn how to manage it.

Analysis of Alternatives
1. Beauregard Bouvier suggested keeping the business but promoting senior employees from within the company as executives.
Pros:
Mrs. Filmore does not have to worry about managing the company all by herself
Senior employees already know how the company works
Mrs. Filmore can focus on other areas of the business
Promotion will boost staff morale and encourage them to work harder
She can still earn a salary through the company’s operations

Cons:
Senior employees might not have the ability to manage the business
Jean Lechaise, the experienced operation manager refused to be responsible for managing the whole company
Lack of new ideas because the current employees will continue with the current business management structure
Mrs. Filmore will have to pay costly salaries to the new executive

2. Sam Shekles, the local banker advised her to sell the business or merge with a larger company.
Pros:
Mrs. Filmore will have a lump sum of money
She will avoid the difficulty of running a business
She can use the money to invest and pursue her own interests
Spend more time with her children
If the economy and the company goes into a recession, Mrs Filmore will not be effected
Potential economies of scale that can arise
Still

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