Forest & Forest

Forest & Forest Motor and Control Company Case Study

In March 1991, David Forest, President; Steven Michaels, Sales Manager and Laura Marden, Marketing Manager of Forest & Forest were reviewing the current situation of the company while preparing plans for its future. Their immediate concerns were: company organization, sales management and marketing management.

Company Background

Forest & Forest Motor and Control Company was started as a repair shop for electric motors by David Forest's father in 1928. Twenty years later, having survived the Depression of the 1930's and the war of the 1940's, the business diversified successfully into the distribution of new and reconditioned electric motors. David Forest started working for his father part-time in 1952, while he was still in grade school. Eleven years later, when David was 22 years old, his father became seriously ill and David quit school and started running the business full time.

Under David Forest's direction, the company diversified again, into distribution of variable speed controls for electric motors. Sales and profits grew steadily. In 1990, sales were $16 million and after tax profits were $700,000.

The company was wholly owned by David Forest and his wife, Doris Forest, who worked part-time as the company controller.

Their son-in-law, Steven Michaels, 29 was the Sales Manager. Previously, he had been Marketing Assistant and part-time student at New York University, where he had obtained an MBA degree in Finance. His undergraduate degree was in liberal arts.

Laura Marden, the Marketing Manager had been with the company for a year and a half, having returned to paid employment after raising three children and obtaining an MBA degree in Marketing Management from Pace University.

Organization

The company employed 50 people, as shown below:

Outside sales representatives 12

Inside sales representatives...