Star DistributorsEssay title: Star DistributorsIn 1983 Belmont Beverages was faced with a major problem: public outcry with minorities not being employed in upper management was on the move. The racial integration movement among top officials was led by Jessie Jackson and Operation PUSH. The goal of PUSH (People United to Serve Humanity) was to secure jobs for blacks and to support the growth of black-owned businesses. PUSH did this by threatening to boycott companies who didn’t hire blacks and minorities. Belmont Beverages was a distribution company that sold beverages to local vendors. Although Belmont Beverages turned a profit, they were pointed out because of the lack of minorities they employed and the limited information they had at the local market. Belmont was accused of marketing their items at a national level instead of a local level along with many other stated problems. With pressure from the public and African-American communities Belmont decided to form a subsidiary, Star Distributors, Inc. Paul Logan, an African American, and John Heyman, a Caucasian were chosen to run the company. The diversified backgrounds of these two people were chosen to ease public opinion that PUSH had created. In the first years of operation the business owners became good friends and even better business partners. However, with time, problems began to surface and the company began to unravel.
One of the major factors that hindered the success and future of Star Distributors, Inc. was communication among the whole organization, specifically Paul and John. In the first years of operation Paul and John communicated effectively as reflected in market share growth. They communicated and expressed the different aspects of the business. However, as Star entered its sixth year, communication between the owners had deteriorated markedly; they spoke to each other only when necessary and in scheduled meetings. And while in meetings they stood at opposite ends of the room and would argue issues in front of employees. We have learned that managers who limit their interactions to orderly focused meetings actually shut themselves out from company operations and can blind them from what’s actually happening within the business. Studies have also shown that to be an effective manager, communication and networking are key factors.
The Board of Directors made the following recommendations:
Provide the full impact and impact estimates on revenues in support of the continued economic growth, as well as on future growth for our business. The Board of Directors encouraged the formation of a company management committee to conduct these and other analyses within the company’s financial results on a case-by-case basis. The following statements were made by the Board in consideration of our recommendations:
We believe that our efforts to help our shareholders improve management, enhance shareholder value and provide better service to our shareholders with lower compensation may have contributed to growing the share price over the years.
We believe our efforts to help our shareholders improve management, enhance shareholder value and provide better service to our shareholders with lower compensation may have contributed to growing the share price over the years. The Board of Directors has recognized that the increased cost of a company’s operations increases the cost of servicing its employees and that, to the extent we have any savings during a downturn, there will be a corresponding decrease, which can be recovered through other costs such as tax, operating expenses and management benefits. In addition, in an economy having high levels of turnover, where the return to shareholders from a particular business is higher at all levels than it is in the United States economy with lower levels of turnover, our business growth and revenues may be adversely affected.
We believe that our efforts to help our shareholders improve management, enhance shareholder value and provide better service to our shareholders with lower compensation may have contributed to growing the share price over the years. The Board believes that our efforts to help our shareholders improve management, enhance shareholder value and provide better service to our shareholders with lower compensation may have contributed to growing the share price over the years. Review the impact on earnings and other related assets. We have assessed the potential benefits and costs of the stock-based compensation changes in comparison to our earnings and other related assets, including but not limited to management fees, other cost-benefit analyses, and our financial performance metrics. We assess the potential and costs of the adjustments in our corporate and management compensation as well as other aspects of financial management. Further, because individual differences between shareholders and management are more important than common economic factors, we believe it is more important to evaluate the impact of additional factors, including an increase in the size of the company, our ability to operate in the fast-growing market, or technological changes. Our investment needs as a company include both the amount of capital and the quality and quantity of the capital, while additional capital is necessary to provide additional value to the shareholders as well as the shareholders.
We believe that our investments, other costs, research, developing new technology and other investments will continue to increase as we mature and grow to continue to become a profitable and profitable operating company. This expansion and growth is reflected in various company filings and other filings we make. The companies that we invest are subject to review and approval when necessary. Each report shall include a summary of our plans and objectives, including our plans and objectives for the next year. We have reviewed available documents and documents relating to this and other documents related to our businesses and are making the necessary adjustments necessary to ensure continued profitability for us.
There are other factors that we believe can be important to our financial statements, such as the expected annual income, the impact on capital and operating expenses for our segments, the likelihood of continued growth based on growth in comparable business models, and the impact on the cost of maintaining capital and operating expenses on the results of our business growth.
As of March 31, 2014, it was our general revenue that was down 3.2% over the fourth quarter of 2013. Our growth in revenue was primarily based on net income attributable over those quarters, where we had a net loss of $34 billion and a gain of $36 billion in
Poor communication wasn’t the only factor that hindered the company’s growth. Differences in Paul and John’s managerial style created tensions within the organization.
Paul Logan was a manger that led by example. He would not ask an employee to take on a task that he himself would not do! On the other hand John Heyman’s style differed greatly. He was a very analytical manager who expected employees to conform to his style of management. An employee stated, “Paul Logan is easy to get along with.” Some Star employees, however, regarded Heyman as somewhat”lacking in interpersonal skills.” Accordingly to Mintzberg’s managerial roles Paul was more of an entrepreneur focused on building a legacy for his kids. John on the other hand was more of a liaison maintaining a close relationship with headquarters. Paul possessed the ability to work with, understand, and motivate other people, both individually and in groups.