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Business, 12.11.2020 04:10 smartgirl61987

Johnny is the majority shareholder of “Clothme Inc.” a clothing retail store that sells a variety of clothes across Canada, quite evenly distributed throughout each of the provinces. They sell different styles and fashions according to the current fashion trends in each of the locations and has staff in each province to look after customer needs, wants, and complaints. Clothme usually buys its inventory from manufacturers across Canada, from Coast to coast, as they like to look for good deals. One of the company’s strengths is that it understands customer and supplier needs and intricacies in each region. Johnny tends to be controlling, and always likes to know what is going on, he has major trust issues. Johnny does not want to run the company fully on his own however, that would be too big a task. He has recently hired Mary and Frank. Mary comes from a large accounting firm and has a strong background in Finance. Frank’s background is in retailing and has been a successful VP in sales with his prior employers. Both have accepted to work for Johnny, however they have both mentioned to him that in the long term, they want to have a chance to grow and be independent. In the past year, Company sales were $560,000 and is expected to grow to over $1million in the next year. The company expects to increase its staff to approximately 1000 employees over the next year, almost evenly throughout each province. Johnny has come to you for advice. He wants to know how to organize his company. He does not know much about business, but one of his friends told him something about decentralizing his operations. Johnny does not know what this means and has come to you for advice and options. Advise Johnny on his concerns of organizing the management of his company.

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