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What Is a President to Do?

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Missouri Baptist University | WHAT IS A PRESIDENT TO DO? | CASE STUDY ANALYSIS | | Julian Mwebaza | 12/8/2014 |

Introduction
Jansen Industries is a company that was founded by a well experienced person in the manufacturing industry. Bill Jenson, the founder, had a manufacturing experience of 20 years. Bill had a passion for innovation and development, as well as the desire to succeed in business which is why he, together with his employees worked hard to grow the company.
A new investor takes over, believing that the management is good, but gets frustrated after five years because of the declining sales figures. Hiring Richard Haberer, as new president of the company, the investor trusts that Richard will turn things around.
In this case, I will analyze the situation that Richard faces, discuss the possible options that he has, to meet the goals put before him and finally, give my recommended course of action.
At the time of Richard’s appointment
Richard is appointed at a time when the investor feels that the company is not making as good sales as they have always made in the previous years. Looking at the figures, the sales are dropping each year and growth is stagnating. Although the financial performance has remained strong, the relatively flat sales will eventually drop below the desired level and the company may lose its market share.
The biggest problem in Jensen industries is complacency. Because of their large market share and the previous years of overwhelming growth, the management team may have relaxed, paying little or no attention to innovation and creativity. An article about signs that employees are becoming complacent said one recent study revealed that “employees are not thinking beyond the obvious and are playing it too safe at work” (forbes.com). Once employees stop thinking, their innovation and initiative will automatically

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