The Evolution of the Firm

1. Do you agree with Howser’s suggestion to “sit tight and ride out the storm” or should the partners take some actions immediately? If so, what actions specifically?In fact, Howser’s suggestion seems to be unreasonable, taking into consideration the fact that he has already provoked a severe crisis within the company. To put it more precisely, his actions have provoked the deterioration of relationships within the company, the schedule did not meet employees’ needs and expectations and Howser’s policies provoked a number of other problems. In such a situation, the partners should fire Howser and start changes in the company. The main point of changes is the improvement of the organizational culture. In such a situation, the partners should focus on the improvement of relationships within the company. The company should return to the flexible schedule and provide employees with larger autonomy and freedom in their initiatives. Furthermore, the company should focus on the improvement of the performance of its affiliates in other cities. In addition, the company should focus on the maintenance of customer loyalty. For instance, the company should provide customers with the possibility to postpone payments, if they cannot afford payment at the moment. In fact, it is more important for the company to retain loyal customers than to receive payments at the moment. Even if the company suffers from some financial losses, the company will retain customers. At the same time, the company should maintain positive relations with the local community but not through the sponsorship or charity. Instead, the company should offer consulting services for local community members and develop educational programs for children living in the local community. For instance, each Saturday, an employee of the company can teach local children. In such a way, the company will improve internal atmosphere and organizational culture, regain customer confidence and loyalty, and improve relationships with the local community.