Clarence opened a farm supply store in Montana during the early 1940s. His neighbors in the county were also his customers. Every person who walked into his store felt comfortable. In fact, they would often sit, sip a cup of coffee, or shell some peanuts, and solve the world’s problems before loading up their purchases. Clarence prided himself on knowing what his customers needed to be successful farmers, and he freely gave them advice about which brand of flea dip would work best on their cattle and which tonic would help a colicky horse. By the time he retired, and his son Seth took over, the company had expanded to three stores in three towns and had 14 full-time employees.
As a youth, Seth had attended the state college and earned a degree in agricultural business. When he took over the company in 1975, he eagerly applied what he had learned to the family business. He was convinced that technology was the key to success, not personal relationships. Over the years, he struggled to convert all his father’s old, handwritten records to electronic files. Eventually, he installed a completely computerized information system that tracked inventory, personnel, and accounts. He sometimes boasted about being an entrepreneur, but Clarence snorted at that term. “Just do what’s right for your customers, and you’ll be doing what’s right for yourself,” he would retort. When Seth retired in 2015, his daughter Kathy took over the company, which now had 23 stores with 228 employees in three states and one wholly owned subsidiary of 18 gas stations. Kathy’s vision involved offering a broader range of products than farm supplies. She wanted to sell the image of the family farm. Her stores stocked Western clothing; boots, hats, and jewelry; home furnishings; and even CDs featuring country music.
Kathy found herself traveling extensively from the corporate office to the various stores. Finding time to manage everything was a problem, but she had a staff of 12 professionals in the corporate office to assist her. E-mail, laptops, and smartphones helped tremendously.
Questions
How did communication practices and expectations differ for Clarence, Seth, and Kathy?
How do you think the management behaviors differed for the three owners?
What contingency factors might each owner have faced while they managed the company?
