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The Crowne Inn (Case Study)

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The Crowne Inn (Case Study)
I. Title of the Case
“The Crowne Inn: A Classic Case Of A Family Business in Turmoil”
II. View Point

As one of the member of the Johnston family

III. Time of Context

It as a clear, cool day in late 2000 when Barbara Johnston was confronted with his son Bruce, it is one of the biggest challenge in her life. Barbara’s family was on the verge of being torn apart over the family’s largest asset, a bar called The Crowne Inn, located in Kansas City, Missouri.

IV. Statement of the Problem

Major Problem: Bruce had not lived up to the oral agreement that he had made in front of his parents and attorney about paying off the second mortgage of his parents, giving them $500 in cash per month, and paying their health insurance and medical bills for the rest of their lives.

Minor Problem: In the long run who will be the one to run The Crowne Inn bar.

V. Statement of the Objective

To resolve the family problem and conflict in a structured and non-threatening way in order to arrive at a Win-Win solution for everyone.
To bring back the families closeness before the dispute begins.

VI. Areas of Consideration

Strength

Innovative
Increase in profit
Weakness

Family issues
Opportunities

Increase of sales of alcoholic beverages in United States
Appropriate location
Threats

Increase number of competitors
Fluctuation of bar industry

VII. Assumption

If the problems will not be solved and continue there’s a possibility that The Crowne Inn will close or eventually be sell on the outside party.

VIII. Alternative Course of Action

ACA
Strength
Weakness

Barbara sells her share to Bruce but with a written contract that he will meet his oral agreement that he made before and give his mother a lump sum of $175,000.

Family issue will be resolve.

Bruce will have a feeling of deep-seated resentment or ill will to the family.
Sell The Crowne Inn to an outside party.
There won’t be a family problem or conflict.
The

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