Skim the case:-read it twice
What is required of me and what is my role? Consultant of AL
What is the main issue and why is it important to the organization? Fraud and mismanagement
Why has the issue arisen, and why now?because al left the co. in middle to complete his studies
When does the issue need to be decided?
How should I allocate my time on this case?
2. Read the case closely.
How do the exhibits fit the case?
Which ones are relevant, and which ones are not?
What industry does the organization operate in? mortgage business
What is the state of the economy?Economy is doing well.
What information do I have on competitive factors that are important to my ...view middle of the document...
Before going for further studies he has an option to sell the business, shut it down or hire someone to run it.because of a profitable business he did not want to shut it down also doubted to sell it so fast so he decided to hire someone.
Problem:- as joe was fairly a new employee and AL does not knew much about his background and nature without doing the proper investigation but impressed by his words and decided to make him his partner.he only knew JOE just from last 2 moths which is not enough. you cannot rely on someone just by the words stated on resume . even though he was a good salesman and performer . also even if he decided to make a partner should have done the proper legal paperwork before creating the partnership.. Also Joe only invested $8400.00 into the co. and become 50% partner in the co. which is not fair with AL who invested all his money , experience and knowledge in the co.
After joining the partnership when Joe did not show up for meeting with landlord and also missed the office for few days was a warning sign for Al before leaving for his studies he should have guessed it or took a proper action to fix the situation . even though he tried to hire someone else and but he quitted within 3 days and al did not really had an option except to accept the joe’s apology and continue with the partnership.at the time Al left there was a potential revenue of $300,000.00 in the co. as joe was not coming to the office regularly and also took some confidential files at home and did not return to office for 3 days.
New partner:- after making the decision to get a new partner but he picked up the wrong person bcoz new partner Wilbur was also a friend of joe the old partner obviously both has a good...