Ask Accounting Basics Expert

Assignment

In no more than three pages address the following:

- Analyze this case utilizing the "stakeholder analysis" by providing the following:

- Identify the stakeholders in this case and the stakeholder relationships.

- Assess and explain the nature of each stakeholder's interest in decision (supportive, non-supportive, mixed, and marginal).

- Assess and explain the power each stakeholder has to influence the decision (financial, legal and/or political).

- Identify possible stakeholder coalitions.

Choose a course of action you would take if you were in Matt Hollis' position.Include in your answer whether the approach chosen follows at least two or more of the following concepts: utilitarianism, universalism, rights and justice.

READ STORY:

Hollis Hardware and Centerville Supermarket

Matt Hollis stared at the telephone number for Bill Harrington, the Supermart executive who had called two days earlier. Supermart was coming to town and wanted Matt to play a big part in the opening and management of a new local store.

For twenty-two years, Matt had owned and operated Hollis Hardware and Centerville Supermarket, the collective offspring of a family business started one hundred years earlier. He knew that if he accepted Supermart's offer it would not only be the end of his family business, but that also of a majority of the other proprietorships in town. The economic consequences would be severely felt in a community long rooted in local business and patronage. However, if he turned down Supermart, Matt knew he might never fulfill the other Hollis family tradition dating back 100 years: providing a college education to his children.

Would he fight to continue the legacy of the store that his great grandparents had started 100 years ago, or would he call Mr. Harrington to accept the offer? Matt knew either choice had serious consequences for both his family and his community.

Background

Matt Hollis, 48, was born and raised in Centerville, Kansas. Like the four generations before him, he had lived in Centerville all his life. He and his wife, Sarah, had four children, ages 14 to 20.

Matt's great grandparents had opened the Centerville General Store in 1896. The store had been handed down from generation to generation, and Matt had taken it over twenty-two years ago. Although it had always provided a good source of income for the Hollis family, over the past decade profits had slowly declined as a result of a weak economy in the Midwest. The Hollis's had to work long and hard just to make ends meet.

Aside from his vested interest in his stores, it was very important to Matt to secure a college education for each of his children; yet, lately, the uncertainty of the business made this goal seemingly less attainable. The eldest, James, was entering his sophomore year at Boston University. The other children had also shown an interest in leaving Centerville for college and had talked of settling elsewhere, too.

The Supermart Call

Two days ago, Matt received a call from Supermart. It had stunned him. Supermart had plans to come to Centerville. It was still very much a community where everyone knew everyone else and liked doing business at local stores.

Bill Harrington, the executive responsible for development of Supermart in the Midwest region, had called. He explained to Matt that Supermart was still in the planning stages for moving into the Centerville area and was familiarizing itself with Centerville and the surrounding area to determine how best Supermart could "penetrate" the area. He then got right to the point: he wanted to recruit Matt to help in the planning of the store when it opened. Supermart felt that utilizing a local businessman in this capacity would help establish the new store and make the opening smoother. Supermart's salary offer to manage the new store would be over twice the amount Matt was currently taking out of the business for family and personal expenses.

Matt thought this would radically alter both the business landscape and the civic identity of the town. As a two-term president of the local merchant association, Matt knew how important locally owned businesses were to Centerville and how they fostered a strong community. Instead of profits being re-invested into the community, profits would now end up in some state two thousand miles away. Matt also thought about the employment consequences of Supermart moving in. He, along with numerous other local business people would inevitably be driven out of business. Although Matt knew that many could expect to find jobs in the new store, he also knew not everyone laid off could be absorbed by Supermart; many would be left without jobs. Matt also thought about how his decision would affect his own standing in town. Many would blame him for the failure of several long-standing businesses and for helping to create so much uncertainty in the community.

Matt quickly envisioned the option of organizing a united front to block Supermart's arrival. He knew several members on the city council and was close friends with the mayor. As a leader of the merchant community, maybe he could rally the town and city council to pass an ordinance effectively blocking Supermart.

Matt also knew that if he didn't take the general manager position then someone else would. Or Supermart might just send one of their own people to open and manage the store.

The Meeting

Bill had asked Matt if he could meet with him. He wanted to meet close to Centerville, but not in the town, so as to avoid any exposure of Supermart's plans to the local community. Matt was to call him back so that they could set up a meeting to discuss his decision. As he thought about calling, his future, his family's future, and the community's future weighed heavily on his mind.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M92827234

Have any Question?


Related Questions in Accounting Basics

Question what discoveries have you made in your research

Question: What discoveries have you made in your research and how does this information inform your ability to evaluate effective coaching and its impact on organizations? Consider these guiding questions: 1. What core c ...

Question requirement 1 read the article in below attachment

Question: Requirement: 1. Read the article in below attachment, and answer the questions in a paper format. Read below requirements before your writing! 2. Not to list the answers, and you should write as a paper format. ...

Question as a financial consultant you have contracted with

Question: As a financial consultant, you have contracted with Wheel Industries to evaluate their procedures involving the evaluation of long term investment opportunities. You have agreed to provide a detailed report ill ...

Question the following information is taken from the

Question: The following information is taken from the accrual accounting records of Kroger Sales Company: 1. During January, Kroger paid $9,150 for supplies to be used in sales to customers during the next 2 months (Febr ...

Assignment 1 lasa 2-capital budgeting techniquesas a

Assignment 1: LASA # 2-Capital Budgeting Techniques As a financial consultant, you have contracted with Wheel Industries to evaluate their procedures involving the evaluation of long term investment opportunities. You ha ...

Assignment 2 discussion questionthe finance department of a

Assignment 2: Discussion Question The finance department of a large corporation has evaluated a possible capital project using the NPV method, the Payback Method, and the IRR method. The analysts are puzzled, since the N ...

Question in this case you have been provided financial

Question: In this case, you have been provided financial information about the company in order to create a cash budget. Management is seeking advice or clarification on three main assumptions the company has been operat ...

Question 1what step in the accounting cycle do adjusting

Question: 1. What step in the accounting cycle do Adjusting Entries show up 2. How do these relate to the Accounting Worksheet? 3. Why are they completed at the end of each accounting period? The response must be typed, ...

Question is it important for non-accountants to understand

Question: Is it important for non-accountants to understand how to read financial statements? If you are not part of the accounting/finance function in a business what difference would it make? The response must be typed ...

Question refer to the hat rack cash flow statement 2002 in

Question: Refer to the Hat Rack Cash Flow Statement, 2002 in the text on page 17. Answer the following questions and submit to me via Canvas by the due date. 1. Cash flow from operations? 2. Cash flow from investing? 3. ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As