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Davon Peters

on 5 May 2015

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Main Idea
Effectiveness of a manager
SWOT matrix
Provide at least two (2) alternatives to resolve the issue
Who is responsible to resolve the issues? Why is that person responsible?
What went wrong in the case?
What did that person do right ?
Traveler Import Cars, INC is a small to midsize foreign
car dealership in the greater Columbus, Ohio area. The company is owned and operated by the Travelers Family during the late 1970s.

Created by : Davon Peters
Victor Hui
Wangho Hsiao
Vashtie Dennis
Randy Traveler
Title A:
President (Travelers import car inc)
Title B:
leasing Company CEO
Former Partner at Capitol Imports, one of the most prosperous foreign Car dealerships in greater Columbus, Ohio, selling expensive European automobiles.

Key Players
Beryl Traveler
Executive Vice President (Travelers import car inc)
A holder of an MBA degree from a respected private university, was a consultant specializing in automobile dealerships.

Stuart Graham
General manager (Travelers import car inc)
In Charge of Finance and Insurance at Capitol Imports
JP. Muzak
Business management consultant (Independent)
Professor of Management, College of Business Administration, The Cleveland State University.
Beryl should have been cognitive of all her stuff members abilities and short coming or have the humility to hire someone to take the helm as the company’s Human resources offers so that she can focus on the growth of the company.
The person that we feel is the most responsible for the issues at Travelers is the Ex wife and Currant vice president Mrs. Beryl Traveler for the following list of reasons.
First and Foremost Beryl Has an MBA and should have a deeper grasps on what it take to be successful in the Automobile sales industry from her training as a Consult to the Auto industry
With Beryl past accreditation's she was more the qualified to be the President of Traveler imports instead of her Randy Traveler
The story of Travelers import car Inc. starts in the greater Columbus, Ohio area during the year 1979 after Randy and Beryl Traveler’s decided to start their own auto dealership. The Traveler’s took there small and grow their business very repeatedly. As the Traveler dealership took off the it became very clear that there mismanagement of the business created issues that threatened the future on the company.
Case Overview
Beryl the vice president of Travelers import car Inc. made a few huge strides in trying to take charge of the mismanagement issues by doing the following.
Travelers import cars Inc. dealt with the following several major points that inhibited the company from reaching it full potential due to the Lack of Human Resource management that lead to administrative and operational issues
. There appear to be too many meetings and they do not seem to be as productive as they could be. On this point there is a consensus. A paper flow problem exists in several areas. The Accounting Office at times does not receive properly filled out forms from the Business Office. It appears that Susan Johnson does not have the time to fill out carefully and on a timely basis all the forms and attend to her other finance and insurance duties. The Accounting Office at times does not receive the necessary paper work from New Car Sales. The Parts Department at times doesn’t receive on a timely basis the necessary information from New Car Sales. Some individuals complain that their superiors do not keep them informed. Everything is a secret.
Performance Appraisal.
Many people reported that they do not receive a periodic formal appraisal. Thus, their need for performance feedback is frustrated.
Wage and Salary Administration.
Numerous individuals have reported that it is the subordinate who has to initiate a wage or salary increase. Most individuals report that they would like to see the superior initiate wage and salary action at least annually. Moreover,a number of individuals are not sure on what basis they are remunerated. The absence of a systematic periodic performance appraisal is responsible, in part, for this perception.
. In a number of instances, individuals arrive late, take extended lunch breaks, and violate rules with impunity. This creates a demoralizing effect on others.
Control System.
The financial control system at the top of the organization appears to be satisfactory. The operational control systems in the rest of the organization are problematic.
While there is still the feeling that the organization is a family
Administrative management issues
operational issues
Car being sold direct from the show room would leave very little inventory for new customers to see and test out
The first thing that Beryl did was to hire experienced mangers to help her manage both travelers and the newly acquired dealership.

Beryl began to feel very over whelmed by her work load and slowly begin to realize that Stuart Graham was in capable of being and effective general manger (GM) and approaching Randy in hope that he would help her come up with a solution
And lastly Beryl brought in JP. Muzak as a consultant to help her come up with plan of action to deal with the company’s mismanagement issues
The travelers four (4) decades of combined industry experience

Travelers car imports physical location in there market

Unionized work force

The quality circle

Business assets that can be used as collateral to acquire or expand market share

Experienced team of sales men and Mechanics
Inconstant communications between departments

Lack of any corporate Training and Development programs

No one in the company received a performance appraisal or had any idea what goals were set for them and there for no one received annual automatic pay raises.

Lack of Disciplinary action for tardiness, stealing of company time, insolence and insubordination

Operational mismanagement

Low morale

Quality circle may need restructuring along traditional lines.

The time it takes to make decisions should be shortened.

The organization has difficulty implementing decisions that have been made.

Lack of follow-up presents serious problems.

Policies and programs are permitted to drift and disappear (motivator board is an example).

Managers may not be delegating enough.

New car salesmen do not always turn customers over to the Business Office, resulting in loss of revenue to the dealership.

Service desk is crucial and it has been a revolving door.

Inability to keep up with demand of cars
Expand to the european import market

Acquire existing competition

Merge and expand car lease subsidiary
New entrants in to market

Bad reviews leading to collapsing of customer base

Mismanagement leading to over all collapse of the businesses

1. Beryl should’ve taken the position of President over Randy because she has both a MBA from a respected university as well as sales experience. Randy on the other hand only had experience working as a partner at Capital Imports. With Beryl at the head, she could’ve organized the company in a better manner than how Randy did.

2. Hire a Human Resources Manager to attend to all the needs lacking in the company such as forming better communication between administration and employees and forming a Code of Conduct and HR policies/procedures which would include a statement describing what is included, a company overview, probationary periods, performance evaluations and compensations, benefits, holidays, vacations, termination, alcohol/drug testing and use of company computers at the work place. This would fix the lack of work ethic and organize the work environment giving both Beryl and Randy more time to focus on the growth of the company.

3. Replace Grant as General Manager with someone with more management experience and put him in charge of the Leasing Company instead. This is because Grant has he has experience with Finance and Insurance working at Capital Imports with Randy in the past. Little things like selling the cars that were in the showroom was not a smart GM decision as well as having as many meetings as all the employees did each day, coming to a conclusion and setting goals with little to no execution to be done.

Hiring a HR Manager was the best alternative because it solves the most issues in the simplest way. A HR manager would’ve been able to lay out how the company should run with its policies and procedures giving both Beryl, Randy, Grant and a new GM more time to focus on their immediate jobs.
which on is the better one.
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