Thinking Critically

Thinking Critically Simulation

Credenhill Industries based in Lansing Michigan is a 3 billion dollar telephony company with subsidiaries who sell cola and retail consumer electronics. The successful CEO Linda James has implemented a management development program. Every quarter, three of the brightest young manager's are selected to be placed in charge of different businesses for five months while their performance is supervised and evaluated by Linda James. At the end of the quarter, the manager with the highest score is decorated the Thorough-Cred award. A promising prospect for this prestigious opportunity is a new manager Kimberly Smith. The title of store manager is the position given to her that she must solve the problem presented. This case study will present, and solve the problem, as well as, measure the success of the problem solutions implemented using the nine step decision-making model.

Kimberly is store manager of a Dallas City based consumer electronics store with many issues. Sales have been falling for the past 8 weeks. This is due to the legal action from city council for violating the local disability access laws and the new electronics store that opened up two months ago. Kimberly must be careful not to look at the symptoms or fallacies presented to her, but look at the actual problems. The primary objective is to improve the store's sales.

The problems the manager chose to address immediately are:

1. Addressing the product mix

2. New Store

3. Variable pay

The issues needing attention but not immediately are:

1. Increasing Sales

2. Solving the WAN problem

3. Legal action

The store manager was able to assess all of the problems presented to her by using the brainstorming technique as well as the Pareto Analysis to evaluate the data in order to find the most appropriate solution(s).

When developing solutions an important fact to remember is to find the solution specific to the problem. One must address all problems presented in order to have a successful problem solution. The ability to develop an alternate approach or Plan B to problems is highly valued. Develop more than one solution. The first solution set determined:

Ð'* Hike promotional expenditure

Ð'* Reorient product mix

Ð'* Offer large discounts on inventory

Ð'* Recommend new pay plan

Ð'* Offer discretionary bonus

Ð'* Challenge legal notice

Ð'* Escalate to CIS

The second solution set or Plan B decided:

Ð'* Reorient product mix

Ð'* Offer large discounts on inventory

Ð'* Recommend new pay plan

Ð'* Offer discretionary bonus

Ð'* Challenge legal notice

Ð'* Escalate to CIS

Increasing promotional expenditure will match the aggressive promotions of the new store. Changing the product mix by reducing the store's reliance on big-ticket items and adding internet related and multi-media products will improve the sales volume; however, this will take time. Holding a one-time sale with large discounts might clear the $80,000 unsold inventory. Making a proposal to headquarters to restructure the variable pay plan may satisfy the electronics store's junior employees; however, this type of restructuring will have to affect all junior employees. In order to offset the restructuring proposal, the store manager has decided to implement a performance plan. This plan will present the award based upon a predetermined productivity level reached by the employees. Credenhill's lawyers could successfully argue the store complies with

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