High Performance Tier

HIGH PERFORMANCE TIRE (HPT)

Appendix

Case #1

HIGH PERFORMANCE TIRE

It is the Mission of High Performance Tire to provide SUPER (Service with Unique, Professional, Excellent, and Reliable) competitive experience

INTRODUCTION:

High Performance Tire is a privately owned tire retail seller in British Columbia that has been a successful business for more than 40 years. Jane Wallace, former leader and CEO, prospered the company and handed the leadership position to William Wallace in 2001. Unfortunately, William made many poor decisions in managing and caused a financial crisis. The purpose of this research is to assist High Performance Tire in developing a strategic plan to restore the organization by improving operations and provide stability and profitability.

CURRENT STATUS:

High Performance Tire faces multiple tribulations causing the company’s financial downfall. William’s poor leadership and management skills and inability to make effective decision has led the company to expand its stores rapidly, requiring an increase in maintenance services and inventories. The sudden change did not allow for adjustment and proper training of staff, causing poor customer service, incompetent employees, and high fixed and operating costs. This, then, resulted to customer complaints, debt, and poor sales rate.

REVIEW:

PROBLEM 1: LEADERSHIP AND MANAGEMENT

1. Ineffective leadership

Leadership is a process by which a person influences others to accomplish an objective and directs the organization in a way that makes it more cohesive and coherent. Jane Wallace had been an effective leader for the company. When William Wallace took over, the company shifted course and drifted downhill. He was not an inspiration to his employees and did not put effort in building a strong team. Leadership does not always come naturally, but can be acquired through continual hard work and perseverance. William must be knowledgeable, open minded, and be...