Describe the company’s profile according to the main points of swot analysis: strengths, weaknesses, opportunities and threats.

Communication skills: Exchanging information / Making suggestions

Read the following phrases and be sure to use them while discussing the problem with the Benson group.

Firm suggestions

In my opinion we ought to (should) launch the product in May.

Surely we ought to /must _____

I (would) recommend / suggest launching it earlier.

I recommend (that) / suggest (that) we put it on the market in June.

I think (that) / feel (that) we should do a marketing study first.

Why don’t we show it at the National Exhibition Center?

How / What about introducing it just before the summer season?

Tentative suggestions

It might be a good idea to launch it in December.

It might be worth (while) bringing it out in the summer.

You / We could perhaps get a well-known player to try it out.

One possibility / option would be to put off the launch for a while.

What if we ____

It’s just an idea, but why don’t we ___

Role play

You are directors of Benson Group. Each of you plays one of the roles described below. Some of you can act as assistants to directors.

The purpose of the meeting is to decide:

1. how Benson can improve its performance and increase its market share;

2. what its future strategy should be.

Chief Executive

You will chair the meeting. You must ask people for their opinions and encourage them to discuss fully the questions on the agenda. At the end of the meeting, you and your board of directors must try to agree on the future strategy of the company. Personally, you are not sure what to do in the present situation. You are retiring in five years’ time and you hope there will be no big changes in the organization before you go.

Deputy Chief Executive

You think that Benson should compete strongly against the Hi-Mark stores, and forget about Levinson Brothers. Therefore, Benson should make every effort to up-grade the quality of its goods. By doing this, it will be able to create an image of quality and luxury. It should also concentrate more on fashion clothing. The stores could sell more designer clothes and well-known brands which appeal to young people. They could buy high-quality goods and sell them under the Benson brand name, too.

Company Secretary

In your opinion, Benson cannot compete successfully against Levinson Brothers and Hi-Mark. You would like the company to join with Levinson Brothers to form a merger. Suggest that your Chief Executive should meet the President of the Levinson organization as soon as possible to discuss this possibility. A merger is a good idea because:

1. the new organization - Benson-Levinson - would appeal to all age and income groups

2. Levinson’s cash resources could be used for Benson’s future development

3. Levinson would bring to Benson new ideas, management expertise and dynamism.

Director - Corporate Strategy

In your view, the present Chief Executive is no longer suitable to lead the Benson Group. He’s too old and has ‘lost his touch’. Try to suggest - in a diplomatic way - that he should give up his job. You would like to bring in someone from outside to run the Group. This person would probably be the successful head of another organization. To attract the right candidate, Benson should offer a top salary, a share in profits, and other benefits. As a long-term strategy, the company should consider building huge stores in out-of-town locations where customers would have a lot of parking space.

Director - Public Relations

You feel strongly that Benson must go down-market and compete directly with Levinson Brothers. Young people are pouring into the South, so Benson must aim its marketing at the 15-25-year-old consumer. After all, these days, young people have plenty of money to spend. Therefore, you want Benson to:

1. redecorate the stores in bright colors, blue and yellow perhaps

2. change its sales approach by gradually offering more goods appealing to young people

3. introduce new types of racks and counters which allow self-service

4. have eye-catching window displays to attract teenagers and young adults.

You will, of course, have other suggestions for attracting young people.

Director - Corporate Finance

You have no doubt that the company must cut costs and increase its cash flow as quickly as possible. Benson needs cash to reduce its loan capital – this is much too high - and to finance its future development. To cut costs, the company must reduce its work-force by 20%. The Group must also have a new distribution system, with one or two large centers supplying goods to all the stores. This will reduce stock levels. You have plenty of ideas for improving the cash flow. For example, the stores could increase the profit margins on goods which were selling well. In addition, they should be ready to buy up cheap, good-quality merchandise. This could be sold in a special part of the stores, known as The Market Place.

Director - Marketing

You want the company to bring in specialist management consultants to do a study of Benson. They could work with the Marketing Department and Corporate Strategy Unit. Their job would be to analyze the organization, and make recommendations about future strategy. It might be a good idea, too, if Benson developed new activities. For example, they could open an optician’s service - very profitable - or offer financial services. A Financial Department could trade in stocks and shares, offer credit facilities, store credit cards, etc. You have several other ideas for new activities.

Director - Personnel and Staff Development

For some time, you have wanted to have a three-week training program, for all sales staff. After the program, they would be allowed to choose which department they wished to work in. Whenever you have suggested this scheme, the Finance director has opposed it. “We can’t afford it,” he always says. Try once again to persuade the board to agree with the proposal. You think, also, that Benson should stop all its concessions. Outside firms renting space in the stores should be encouraged not to renew their contracts. The company must sell its own goods and build up its own image. In the long run, you would like an architectural solution to Benson problems. Stores should have a central elevator system and an ultra-modern shopping arcade on the top floor, under a giant glass dome.

Non-Executive Director

Discuss Benson’s problems with your colleague, the other non-executive director on the board. You are both advisers to the board. You may, therefore, make any suggestions or comments you wish concerning Benson Strategy. Be ready to criticize proposals made by other directors.

What steps would you take to recover the company if you were the managers of the Benson Group? What would be your recommendations?