Facts Statements

Freshman (College 1st year) ・Business ・APA

Everyone knows that our company strategic aim is the extension of our goods and services to our consumers in new geographical regions. The expansion has increased with more positions and responsibilities, which means a new position needs to be created. The establishment of a new role between local managers and CEOs will help our business develop by freezing managers' time to tackle different problems and issues. The site manager spends a lot of time visiting both sites to solve problems. A new role of a regional manager will help to solve these problems and visit all the sites. Through delegating this to a new position, the CEO and location managers will be able to look for additional expansion opportunities and consider other strategic issues such as whether franchising or securing venture capital to finance an internal expansion makes sense to the company.
The option of promoting existing performing managers or hiring someone from outside company is not an easy role. Each decision has pros and cons. Promotion of existing performing managers appears to be a good decision to fill the new position, though various disadvantages exist. This is because the existing managers are familiar with the firm and have developed a relationship with other workers at the locational level. The ability to handle large management situations and further management training will come to play. However, there are some risks associated with promoting existing location managers. For instance, the other managers could become jealous hence, fail to cooperate with him/her. Moreover, the newly promoted manager may impose preferences that his/her particular shop had to all other shops, thus resulting in conflicts and failure. Hence, the best option is employing an individual from outside and having the person work with the shops for some time to familiarize him/herself with company operation. Employing someone from outside could introduce new management ideas into the company to enable the firm run more smoothly. Therefore, I think the latter option is the best choice to make.
Both the CEO and the CFO should make the decision of adding the new position. The managers will have the right accepting or decline this new position. This is because the regional manager will report to both CFO and CEO. Additionally, this new position will assume the roles currently handled by the CFO and the CEO. The individual delegating the position and the individual taking over the position must agree on how it be dealt when new positions are created.
A middle-level management level will be created if the new position is added to the company. Therefore, the new management levels will constitute top-level management, middle-level management and lower line management (strategic, tactical and operational managers or upper, middle and lower management).

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