C17 Traveler Import Cars
Traveler Import Cars, Inc.
Extracted from J.R. Gordon(1993): A Diagnostic Approach to Organizational Behavior
STEP 1: Read the Traveler Import Cars, Inc., case.
BACKGROUND
Randy Traveler had been a partner in Capitol Imports, one of the most prosperous foreign car dealerships in greater Columbus, Ohio, selling expensive European automobiles. His wife, Beryl, a holder of an MBA degree from a respected private university, was a consultant specializing in automobile dealerships. In 1979, Randy and Beryl decided to go into business for themselves. Since between the two of them they had four decades of automobile dealership experience, they elected to acquire their own dealership. With some luck, they obtained a dealership selling a brand of Japanese cars that had become known in the United States for its very high quality. Randy became president and Beryl executive vice-president.
EVOLUTION OF THE FIRM
Stage 1
After obtaining the Japanese dealership, Randy and Beryl decided to locate it approximately two miles from Capitol Imports. The decision was made on the basis of immediate availability of a suitable facility. This location, however, was several miles from a major shopping area of any kind, and the closest automobile dealership was Capital Imports. Furthermore, the location was approximately three miles from the nearest interchange of a major interstate highway. Nonetheless, the dealership was located on a busy street within easy access to half a dozen upper-middle-class-to-affluent neighborhoods with residents predisposed to purchasing foreign automobiles with a high quality image. A number of key employees were enticed (persuaded) by Randy and Beryl to leave Capitol Imports and join Traveler Import Cars. Stuart Graham, who was in charge of finance and Insurance at Capitol Improts, became general manager at Traveler Import Cars. Before specializing in finance and insurance, Graham was a car salesman. Several mechanics and car salesmen also left Capitol
Extracted from J.R. Gordon(1993): A Diagnostic Approach to Organizational Behavior
STEP 1: Read the Traveler Import Cars, Inc., case.
BACKGROUND
Randy Traveler had been a partner in Capitol Imports, one of the most prosperous foreign car dealerships in greater Columbus, Ohio, selling expensive European automobiles. His wife, Beryl, a holder of an MBA degree from a respected private university, was a consultant specializing in automobile dealerships. In 1979, Randy and Beryl decided to go into business for themselves. Since between the two of them they had four decades of automobile dealership experience, they elected to acquire their own dealership. With some luck, they obtained a dealership selling a brand of Japanese cars that had become known in the United States for its very high quality. Randy became president and Beryl executive vice-president.
EVOLUTION OF THE FIRM
Stage 1
After obtaining the Japanese dealership, Randy and Beryl decided to locate it approximately two miles from Capitol Imports. The decision was made on the basis of immediate availability of a suitable facility. This location, however, was several miles from a major shopping area of any kind, and the closest automobile dealership was Capital Imports. Furthermore, the location was approximately three miles from the nearest interchange of a major interstate highway. Nonetheless, the dealership was located on a busy street within easy access to half a dozen upper-middle-class-to-affluent neighborhoods with residents predisposed to purchasing foreign automobiles with a high quality image. A number of key employees were enticed (persuaded) by Randy and Beryl to leave Capitol Imports and join Traveler Import Cars. Stuart Graham, who was in charge of finance and Insurance at Capitol Improts, became general manager at Traveler Import Cars. Before specializing in finance and insurance, Graham was a car salesman. Several mechanics and car salesmen also left Capitol