Director - Corporate Strategy

Date: 2015-10-07; view: 461.

Company Secretary

Deputy Chief Executive

You think that Benson should compete strongly against the Hi-Mark stores, and forget about Levinson Brothers. Therefore, Benson should make every effort to up-grade the quality of its goods. By doing this, it will be able to create an image of quality and luxury. It should also concentrate more on fashion clothing. The stores could sell more designer clothes and well-known brands which appeal to young people. They could buy high-quality goods and sell them under the Benson brand name, too.

In your opinion, Benson cannot compete successfully against Levinson Brothers and Hi-Mark. You would like the company to join with Levinson Brothers to form a merger. Suggest that your Chief Executive should meet the President of the Levinson organization as soon as possible to discuss this possibility. A merger is a good idea because:

1. the new organization - Benson-Levinson - would appeal to all age and income groups

2. Levinson's cash resources could be used for Benson's future development

3. Levinson would bring to Benson new ideas, management expertise and dynamism.

In your view, the present Chief Executive is no longer suitable to lead the Benson Group. He's too old and has ‘lost his touch'. Try to suggest - in a diplomatic way - that he should give up his job. You would like to bring in someone from outside to run the Group. This person would probably be the successful head of another organization. To attract the right candidate, Benson should offer a top salary, a share in profits, and other benefits. As a long-term strategy, the company should consider building huge stores in out-of-town locations where customers would have a lot of parking space.