Situation Analysis: John bailey left a major department store chain where he worked as the hardware department manager to open his own office supply store. By the year 1986, the firm, Bailey’s office supply, had become a large and well-known establishment in Toronto with three outlets. The firm carried a very extensive line of all basic office supplies, typewriters, and adding machines, and a limited line of office furniture. In 1996, john bailey’s son Marty was finishing college in business administration and decided to join his father in the business. Marty joined Bailey’s as assistant sales manager with the understanding that he would be given the job of sales manager on the retirement of Kenneth harker. At the same time Marty’s brother and sister, along with Marty, were placed board of directors for Bailey’s. During the late 1980s, both baileys observed the phenomenal growth and development of the high technology firms that occupied the golden triage aria in and around Toronto, Ottawa, and Montreal. This boom also signaled the introduction of many strong competitors for Bailey’s. It was tempting for the baileys to invest in newly created firms. John bailey’s, however, was fairly conservative, and having built the business to a success was now looking forward to enjoying the fruit of his hard work. He still retained controlling interest in the business and was opposed to making any outside investments. On the other hand, Marty felt strongly that by adding line of computer hard and software to their, merchandise line, bailey’s could increase sales. By 2008, the effect of the competition and cutbacks in building construction had reduced the total income of business and the profit of by some 20 percent. Bailey feels that it might be wise to turn the management of the business over to Marty but he is shocked to hear that Marty has decided to