Dalman and Lei have discussed two possible avenues to grow and expand Sandwich Blitz, Inc. One possible strategy would be to franchise locations. Another strategy would be to secure venture capital to finance an internal expansion by opening more company-owned shops. Dalman feels that he just does not have time to investigate these options because he is spending an increasing amount of his time assisting the location managers. Lei noted that two of the location managers had exhibited a lot of skill in the management of their locations and perhaps a new position could be added to coordinate with the location managers. This would free Dalman to work on these larger issues.
1. How would creating a new position between the CEO and the location managers help the business to grow?
Creating a new position will allow Dalman to devote his time and energy towards more important issues regarding growing the company as a whole; namely the possibility of franchising locations and or securing venture capital to finance and internal expansion by opening more company owned shops. In this new position, the new manager would have the authority to make decisions, give orders, draw on resources and do whatever else is necessary to fulfill that responsibility. Dalman would only need to have a weekly or bi-weekly meeting with the new manager as to the status of the locations at the operational level and dispense advice or direction if needed.
2. Is promoting an existing manager the best option to fill this position? If not, what is an alternative source to fill the position?
Yes, promoting an existing manager is the best option to fill this position because the existing manager already knows the job and with the additional responsibilities, he will feel like he’s contributing. Also, with his exceptional managerial skills, he will remain focused, put over 100% effort into the tasks at hand and become involved in new ideas and innovation for the company.
3. Who within the company should make these decisions?
Dalman and Lei should make these decisions. Since they both know who the managers are and their skill set, then they are the ones who should decide who to promote and/or move into the position.
4. List the levels of authority (management) that Sandwich Blitz, Inc. would have if the new position is created.
The levels of authority (management) that Sandwich Blitz, Inc. would have if the new position is created are:
1.Strategic Managers, CEO, CFO, Dalman and Lei
2.Middle Manager – Senior Manager, New Position
3.Operational Managers – 8 Location Managers