Case analysis Assignment Example | Topics and Well Written Essays - 500 words

Case analysis - Assignment Example The problems at the company started when Don Smith took over the firm. The biggest mistake that was made by the Mr. Smith when he acquired the company was that he did so through a highly leveraged transaction that drastically increased the long term debt of the company. A company that had a policy under the leadership of Blake of not mortgaging the opening of any new store became burdened by debt. A second issue at Friendly was conflicts of interest between TRC, Smith, and Friendly. Smith was both owners of TRC and Friendly. He approved a lot of dubious contracts including two shared costs programs of an Illinois office, where the company had no presence, and leasing agreement of a jet with TRC. There were also conflicts of interest in the board of directors which had some members that were dual board of directors of both companies. A third major issue at the firm was that its chairman was misusing company funds for personal expenses such as using the private jet for personal reasons . A fourth major issue at the firm was the lackluster financial performance of the company. The company lost over $30 million between 2005 and 2006. In 2007 the company achieved profits, but its net margin was a very thin at 0.9%. The net margin ratio measures the absolute profitability of a company (Peavler). A potential solution for the shareholders of the company is to sell off the shares of the company all at once. The problem with this solution is that a selling frenzy might further erode the price of the stocks driving it to become a penny stock. A second solution for the firm is to force the resignation of Don Smith. The problem with this solution is that his resignation would have to be forced by the board of directors and Smith has them on his pocket. A third solution is for the shareholders of the company to unite in the efforts of Sadar Biglari to turn around the company by getting two seats in

Short Report Essay Example | Topics and Well Written Essays - 1750 words

Short Report - Essay Example The major problems encountered by the group include poor recruitment and selection procedure, lack of precision in job description, incompetent leadership approach, lack of effective communication within the operational dimensions of the group, inadequate training and development programs, employee motivational limitations and lack of proper integration of HR strategies with the overall organisational goals. Thus, in order to resolve these challenges and issues, the City of Southbridge has been suggested to restructure its HRD and managerial approach. Addressing the rudimental flaws persisting within the organisation, along with a considerable significance towards identifying the future scope for improvements and opportunities to mitigate the limitations within the HR practices of the City of Southbridge, it is expected that this report shall be helpful for the group’s Chief Executive Officer (CEO) in taking requisite measures. Table of Contents Executive Summary 2 The Role of a Human Resource Department at the City of Southbridge 5 The Arguments for a Strategic Human Resource Management within the City Of Southbridge 6 Identification of Potential Areas of Reform 8 Conclusion 10 Recommendations 10 References 12 Introduction City of Southbridge is a large-sized metropolitan local authority, which employs over 700 people in an array of professional, community amenity and manual roles. Mr. Brian, the recently appointed HR manager of the group, was able to identify several HR challenges during his professional tenure. In this context, Mr. Brian postulated that the group is still burdened with the orthodox HR practice, wherein greater emphasis is allocated to administration and the related transactional functions only. It has been highlighted that the HR structure within the group was principally based on its functional dimensions, including recruitment and payroll section as the primary and the largest sections. Mr. Brian further observed that none of the HR staff possessed adequate understanding regarding the strategic notion or functions followed by the City of Southbridge, which in turn caused misalignments in the execution of the HR strategies in accordance with the strategic notion followed in the City of Southbridge. With due consideration to Mr. Brian’s concern, the primary purpose of this report is to lucidly highlight the role of Human Resource Department (HRD) within the City of Southbridge. The report further strives to explain the need for a strategic approach to resolve HRM issues within the City of Southbridge. Also, the report entails identification of potential areas of scope within the group to accelerate the effective reform of the HR function in a strategic way. Throughout the report, in order to acquire considerable understanding and to draw valid and reliable conclusion, recently published academic journals and peer-reviewed articles have been utilized. Furthermore, journals containing relevant models and th eories have been taken into concern for offering necessary recommendations in respect of the HR challenges identified within the City of Southbridge. The Role of a Human Resource Department at the City of Southbridge Human Resource Department (HRD) plays a crucial role that further imposes significant impacts on the overall