Deluxe Tool

I.M. Tycoon, who is the President of Deluxe Tool, has just inherent Safe Buy Insurance Co. and Micro Age Software after his sister and brother died in an airplane crash. One legal constraint featured in the will prohibits any sale of the assets of the companies for three years. As a consultant hired by IM my recommendations in this situation are as followed.

Since all the companies have been successful in their own fields I would suggest neither consolidating nor standardizing their process. The late Harold made his businesses successful by purchasing insurance agencies from owners who retired but he kept the company's name operation and reputation the same. The only real change he made was placing a manager in each office that would handle the daily operations. My suggestion to IM is to adopt this method, keep all the business operating as separate entities but place a manager there to handle the daily operations. Managers that are appointed to these new positions should not come into the company and try to change operations right away. Managers should observe and learn how each business operates and interact with the employees. Building that relationship with the workers can create trust need and can make the change process smoother, but before any changes are made managers need to contact IM so that he can improve the modifications. According to the Business Brief (2011) Managers need to monitor the appropriateness of their company's strategy in light of environmental changes. A starting point is to pay close attention to those risks that pose the greatest threat to the organization's strategy. These risks become the focus of the organization's interactive control system. The interactive control system monitors the validity of the firm's strategy as the external environment changes, to ensure it is still being adequately compensated for the risks the firm is assuming.

Another reason why I believe all businesses and balance sheets stay separated is because it will be easier if IM wants to sell one, or all the companies after the three year limitations have expired. I understand the process of managing all the paperwork from each company can become time consuming but each company already has a system in place to handle that portion of the organization. Co-mingling the finances can create problems in the future. Problems can arise if one business is doing better than another. If one company wants to expand their operations, it will be tough to prove growth with a particular company since each company finances will be in underneath one business umbrella.