What is OUR Business?
MSTM 6023: Strategic Planning
Submitted by Mary McCarthy
Jan 31, 2015
CASE OVERVIEW
“What is OUR Business” is a management case by Peter Drucker (Drucker, 2009). The case closes with the Bill Callahan, founder of Callahan Associates, posing the title question to the company’s Executive Committee as they are unable to reach consensus on what direction to take to grow the existing business.
Callahan Associates is a retail conglomerate consisting of a total of forty individual stores within four distinct chains: 1. Supermarket chain, 2. Garden Centre chain, 3. Greeting Card chain and a Home Service Centre chain.
This mission for Callahan Associates was to provide consumers with a variety of top quality products and services and a friendly and helpful shopping environment. Bill Callahan had personally identified three principles to which the company must stay true to realize its mission:
1. Limited the number of stores within any given chain to what could be managed by one Manager. This would ensure quality.
2. Ensure that a “centre of strength” was identified for each chain. This would provide a competitive advantage through individuality and distinction.
3. Ensure that employees have a personal stake in the business through promotional opportunities and incentives. This would ensure commitment.
In keeping with the mission and principles set by Bill Callahan, each chain had one dedicated Manager. These four Operation Managers along with Bill Callahan, a Financial Executive, and a Human Resources Manager formed the Executive Committee. It was the policy of Callahan Associates that all major decisions be made by the Executive Committee through unanimous agreement.
The case notes that Bill Callahan believed that to support employee development, promotional opportunities must be made available through the purposeful expansion of the business. As such a new business was selected for development
References: Drucker, P. (1993). Management. New York: HarperCollins. Drucker, P. (2009). What is OUR Business? In P. Drucker, Management Cases (pp. 11-14). New York: Collins Business. Lund, S. B. (2006). 10 Steps to Successful Strategic Planning. ASTD Press. Napier, R. (1998). High Impact Tools and Activities for Strategic Planning: Crative Techniques for Facilitaing Your Organization 's Planning Process. Porter, M. (2000). What is Strategy?. Harvard Business School Publishing Corporation.