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Case Study
Owen Mills Limited
We have all
that you want!
Owen Mills Limited began its operations on Trumpet Land, a beautiful island in
the Caribbean with a very diverse population in terms of age, gender, ethnicity,
religion, disability, sexual orientation, education, and origin. In 1970, at the age of
twenty-eight (28), Owen Mills a progressive thinking young man decided to start
his own business. His father had worked as a Manager at a large department store
in the city of Trumpet Land for as long as Owen can remember, and his father
would share his daily experiences. The idea of operating his own business was
always at the forefront of Owen’s mind. After gaining four (4) Advanced Level
subjects (Mathematics, Geography, English Literature and Spanish), Owen got a
job at a large Credit Union where he moved up the ranks from a Customer Service
Clerk to Supervisory level within four (4) years and then onto being a Credit
Officer.
During his time at the Credit Union, Owen attended a number of short
management courses. This built his confidence that someday soon he will achieve
his dream of being a big business man. At age twenty-eight (28) Owen thought
that he had saved sufficient money along with his wife who worked at another
Credit Union, so that they could purchase a small one-story building in the heart of
the city. The building was at the corner of French Street and John Street, the main
street in the city. The building was refurbished and painted in bright red, and blue
to suit the liking of Mr. Mills. He thought to himself “No one could miss this
building” and he also thought of a tag line. Business started in February 1970.
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From the inception of the business to date, the tagline emblazoned at the front of
the store “We have all that you want!’ has remained.
The Early Years
Owen Mills Limited operated as a sole proprietorship for many years selling
almost every item that a household could want, staying true to his tagline. The
business began with five (5) employees: his wife serving as the cashier, two store
clerks, one driver and a cleaner. The store was well sectioned with a variety of
items as shown in Table #1 below.
Table #1 – Variety of Items sold by Owen Mills Limited
Cosmetics and related
products for men and
women.
School items – copy
books, pencils, pens
rulers, etc.
Basic food/grocery items – rice,
flour, sugar, peas, salt,
seasonings and other
condiments
Personal hygiene
products
Plumbing and
electrical material
A variety of snacks and soft
drinks
Perfumes/fragrances Small appliances Kitchen ware and Glassware
Clothing and footwear
for babies, and boys and
girls
Household items –
batteries, glue, tacks,
etc.
A variety of gift items
Ladies and gents’
underwear and other
everyday garments
Household cleaning
products
Gardening tools/implements
and hardware items
Gym shoes and slippers
for ladies and gents
Sewing items A variety of handy man tools
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Orders would be placed with wholesalers who would deliver the products on
scheduled days. Mr. Mills was very organized. During the first two (2) years of
operating in the city of Trumpet Land, Mr. Mills observed that his customers
comprised of citizens from all over the island. He got an idea, “I could go to the
outer area of the city with my products.” He started in October 1971 to pack his
Toyota panel van and leave with his driver on Saturdays and Sundays to the areas
bordering the city. Mr. Mills was successful with this venture and discovered that
there were retirees and housewives who were at home during the week, and he
began to go into those area at least two (2) days per week in addition to Saturdays
and Sundays.
Clearly, Mr. Mills was an astute businessman who was always thinking of the next
move to grow the business. He and his wife joined the Chamber of Commerce,
read widely about what was happening locally, regionally and internationally, and
made every effort to attend conferences and seminars which they thought would be
beneficial. He was always thinking about growth and expansion. Owen Mills
Limited became a known business even to those persons who had never patronized
the store. In the midst of it all, Mr. Mills understood his corporate social
responsibility and as such was respected highly by other businessmen and
members of the community and country. A proud moment for Mr. Mills, his
family and employees occurred when he was awarded Business Man of the Year
Award in 1999.
On a Growth Path
The years flew by very quickly and by 1995, Mr. Mills had added two (2) more
floors to the original building that he bought. He now had four (4) grown children
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(two (2) boys and two (2) girls) all in their twenties and who all showed an interest
in the business. Similar to their father, they had done very well at the secondary
school level and had aspirations of gaining a tertiary level education as well as
being a part of the business. They pondered their options of going to school full-
time or enrolling in an online programme, so that they could better manage their
time and fulfill their career objectives. The oldest son began to pursue the
Association of Chartered Certified Accountants (ACCA) Programme. He thought
that he can become the Accountant for Owen Mills Limited or open an accounting
firm in the next few years.
By the year 2000, Mr. Owen Mills had spread his wings to the eastern, southern
and western part of Trumpet Land. He was able to purchase within a five-year
period, three (3) large two-story buildings in each of the areas. The buildings were
painted in the same colors as the first one in the city in the north and carried the
well-known tagline – We have all that you want! The business incurred a
manageable mortgage loan, but that will be repaid in less than ten (10) years.
Mr. Mills began to think about succession for his business and the future of his
children who had been supporting him throughout the years. He held a family
meeting and it was decided that with the imminent opening of three (3) other
Branches, that each child would manage a branch and he will now be considered as
the Chairman.
In the midst of the initiatives being undertaken, Mr. Mills was very cognizant that
the world of business was wrought with dynamism and uncertainty and he and his
family needed to understand about strategic moves that could be undertaken. He
had been reading and trying to keep up to date with what was happening in the
world of business. He and his family did not have a full grasp of the theoretical
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underpinnings to maneuver quickly out of any new challenges, and he understood
very well that challenges can surface with expansion. By 2018, the total staff had
grown to eighty (80) persons which included cashiers, information technology
personnel, supervisors, customer service staff, cleaners, drivers and his four (4)
children as managers,
Looking to the Future
Undoubtedly, Owen Mills Limited has been a successful enterprise. However, Mr.
Mills and his eldest son, who had gained his ACCA qualification began to look at
the financials very closely. They recognized that while the company had repaid
the mortgage loans, and there was still an influx of customers at all branches, the
profits had been reducing in the three (3) years prior to 2020, though minimally.
Mr. Mills and his family had their usual monthly meeting in December 2019. One
of the daughters took some points in relation to the present status of the Company.
It related to a SWOT Analysis. Whist the SWOT Analysis was not fully
articulated in terms of what the strengths can and have brought to the Company;
how the weaknesses are impacting the Company; the possible outcomes from
taking advantage of available opportunities; and the possible impact of threats, her
brief notes are highlighted below:
Strengths:
Committed employees and management
Appropriate management style
Adequate financial and human resources
Wide variety of products
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Broad market coverage
Good financial management
Brand name reputation
Excellent customer service skills
Some expertise in new venture management
Weaknesses
Lack of research and development skills
Lack of understanding of strategic management and planning
Opportunities
Exploit new market segments
Move into new businesses, but how and what type
Expand into foreign markets
Acquire a profitable acquisition
Threats
Increase in competition, but where do we look
New forms of competition
Changes in customer preferences
Rising costs of products and labour
Changes in demographic factors
Changes in economic factors and down turn in the economy
Slow growth in the market
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At the start of 2020, Mr. Mills and his family began to follow the news with
respect to the deadly COVID-19 virus. “This is a time for quick action” pondered
Mr. Mills. The business has been successful, but Mr. Mills and family has
recognized that things are changing in the environment and could have negatives
on the business. At the January 2020 monthly meeting, it was decided that the
company should seek the services of a reputable consultant who can advise and
assist the company with getting a clear understanding of what strategic
management and planning entails. Other matters discussed which the family
agreed to pursue, include embarking on a training initiative which would include
staff at all levels as well as to create an awareness of the environmental factors that
can affect the company. One member in the meeting raised the issue of how they
can determine with accuracy the financial situation at the company. She is aware
that ratios could be used, but that’s as much as she knows.
Mr. Mills stretched his imagination, “We had better start thinking about starting
a branch in some foreign country, or start to manufacture something that people
will need.” Then he pondered to himself, “I do not have all the knowledge about
the intricacies of manufacturing and so-called strategies to continue to be a
winner”
The meeting ended with Mr. Mills thinking aloud that they should all read up about
what it means to be innovative. He indicated that at the next meeting, they will all
come with their ideas of a plan that is different to what they are doing now and
which can contribute to continued success. He was not sure what type of plan that
would be. He has been following keenly the possible impact and negative fallout
that the company could experience because of the COVID-19 virus. However, the
astute businessman that Mr. Mills is, he purchased some cotton material, took
some elastic and thread from the store, and hired two (2) seamstresses to make
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protective masks. The masks have been a fast seller and is bringing a profit to the
store. Once more, Owen Mills Limited is living up to its tagline – We have all
that you want!
Case Study Questions
Graded Assignment #4
Answer all questions
Q1. Mr. Owen Mills, the owner of Owen Mills Limited has been operating a
successful business since 1970. However, he is not fully aware of what
strategic management and planning entails. You are hired as a consultant to
advise Mr. Mills, his family and selected members of the Company about
what strategic management and planning entails as well as how important it
is for the organization to engage in strategic management and planning.
What would you say to the members present at the meeting so that they can
have a very good understanding of what strategic management and planning
entails, and why they should engage in the process so as to maintain the
competitive advantage of Owen Mills Limited?
(Total – 25 marks)
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Q2(a). In the early years, Mr. Mills along with his driver went into the areas
bordering the city where his store was located.
Identify the type of strategy by name that was used by Mr. Mills in his
effort to capture additional sales. Also, provide a brief explanation for the
strategy identified as well as provide three (3) reasons why Mr. Mills was
successful with that initiative.
(2 marks)
Q2(b). With the emergence of COVID-19, Mr. Mills saw an opportunity to help
with protective gear, namely masks, as well as to make some money.
Identify the type of strategy by name that was used by Mr. Mills through
the initiative to make and sell masks. Also, provide a brief explanation for
the strategy identified as well as provide three (2) reasons why Mr. Mills
was successful with that initiative.
(2 marks)
Q2(c). Mr. Owen Mills is thinking about starting a branch in some foreign
country, but will need advice on the types of strategies that could be
adopted.
As the hired Consultant, how would you advise Mr. Mills and family
about the best approaches to entering a foreign market. Provide
justification for your advice.
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In addition, could you provide Mr. Mills and family about the types of
experiences that they may encounter, and which may not be always
positive. Based on your response, would you advise Mr. Mills to enter a
foreign market? Provide justification for
your advice.
(11 marks)
Q3(a). Mr. Owen Mills and his family needs to understand how they can
determine with accuracy the financial situation at the company. One of his
daughters is aware that ratios could be used, but that is as much as she
knows.
As the hired consultant, how would you advise Mr. Owen Mills and his
family?
(2 marks)
Q3(b). As a forward-thinking entrepreneur, Mr. Owen Mills is pondering going into
manufacturing something, but he has to think carefully about the product to
be manufactured. Therefore, he needs to understand what the Value Chain
is about as well as the types of strategies that he could utilize to gain a
competitive advantage.
What information would you provide to Mr. Mills and his family regarding
the Value Chain as they think seriously about going into the manufacturing
sector?
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Also, what are the possible strategies that could be utilized once the
Manufacturing company becomes established? Provide justification for
your advice.
(6 marks)
Discuss the strategic role of employee training from the perspective of the
organization and the employee.
(5 marks)
Q3(c). Based on the existing situation at Owen Mills Limited, and as the Consultant
hired by the Company, suggest three (3) strategies that the Company could
undertake to maintain a competitive advantage. Provide justification for
your selected strategies.
(7 marks)
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INSTRUCTIONS TO CANDIDATES:
The Assignment has three (3) essay type questions.
You are required to answer all three (3) questions
Q1 – 25 marks
Q2 – (a – c) 15 marks
Q3 – (a – c) 20 marks
Scoring Rubric – Assignment 4 – Case Study Analysis (60%)
Due Date: Thursday – 30th April, 2020 between 8:00 a.m. and 8:00 p.m. EC time
Criteria for each
Question
46 – 60 points 31 – 45 points 16 – 30 points 0 – 15 points
Understanding of
requirements for
Question(s)
A clear understanding of
requirements for the question
is demonstrated. There is
clarity and focus. Main ideas
are clear and are well
supported by detailed and
accurate information.
A very good
understanding of the
requirements for the
question(s) is
demonstrated.
A fair understanding of
the requirements for the
question(s) is
demonstrated.
Misunderstanding of
the requirements for the
question(s).
Organization The introduction is inviting,
states the main topic, and
provides an overview of the
question to be answered as
The introduction states
the main topic and
provides an overview of
the paper. A conclusion
Introduction, structure
or conclusion lacks
clarity.
An introduction was
not provided and
structure or conclusion
is poorly articulated.
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required. Information is
relevant and presented in a
logical order. The conclusion
is strong.
is included.
Analysis of the Issues
Focus, Detail and
Language
Insightful and thorough
analysis of all the problems
/questions.
Thorough analysis of
most of the problems
/questions
Superficial analysis of
some of the problems/
questions in the case
Incomplete analysis of
the problems /questions
Comments on
effective solutions
Well documented, reasoned
and pedagogically
appropriate comments on
solutions to all problems
/questions
Appropriate, well
thought out comments on
solutions to most of the
problems /questions
Superficial comments
about solutions to some
of the problems/
questions
Superficial comments
and at times
inappropriate solutions
to some of the
problems/ questions
Links to Course
Readings and
Additional Research
Excellent research into the
problems/questions with
clearly documented links to
the material read in class and
possibly additional material
Good research and
documented links
between the problems/
questions and the
material read
Limited research and
links between the
problems /questions and
the material read in class
Incomplete research
and links between the
problems/questions the
material read in class
General Presentation
– Sentence Structure,
Grammar,
Mechanics &
Spelling
Excellent presentation – All
sentences are well
constructed and have varied
structure and length. No
errors in grammar,
mechanics and/or spelling.
Excellent referencing format
and in-text citations
Very good presentation –
Most of the guidelines
have been followed.
Most sentences are well
constructed and have
varied structure and
length. A few errors in
grammar, mechanics
and/or spelling, but they
do not interfere with
understanding.
Fair presentation –
Some of the guidelines
are followed. Some of
the sentences are well
constructed and have
varied structure and
length. A number of
errors in grammar,
mechanics and/or
spelling, which interfere
somewhat with
understanding.
Poor presentation –
Guidelines have not
been followed.
Sentences sound
awkward, are
distractingly repetitive,
or are difficult to
understand. Makes
numerous errors in
grammar, mechanics,
and/or spelling that
interfere with
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Good referencing format
and in-text citations
Referencing format and
in-text citations need
improvement
understanding.
Lack of references and
in-text citations or poor
formatting.
Further Guidelines:
Ensure that the pages in your document are numbered as well as your responses to the Questions.
Presentation is important:
• A simple Cover Page
• Numbering of Pages
• Times Roman 12-point font
• Double Line Spacing. The first line of each paragraph must be indented – APA Style
• Word Limit – There is no specified word limit. You are encouraged to focus om meeting the requirements for the
questions.
• Cite your sources of data/information – References – APA 6 citation rules – Correct formatting
• Typographical/Grammatical errors (marks will be deducted)
• Incorrect File Name (1 mark will be deducted) Name your file correctly from the start
• Your Student ID number must form part of the Microsoft Word file name. The file name should take the format “MGMT3031
– XXXXXXXX – A4” where XXXXXXXX will be replaced with your Student ID number
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Example: MGMT3031 – 9006781234 – A4
• You must upload your assignment to the designated Drop box in the Graded Activities Section labeled: Final Examination:
Case Study
• Note that you have only one (1) opportunity to upload your assignment to the designated Drop box.
• Penalties for Plagiarism and Copying – Page 26 of your Course Guide
• Your Cover Page, Repetition of Questions and References will not form part of your word count and Similarity Index.
• Very Important – Remember to cite your Sources of Data/Information correctly. Your References must reflect the
use/inclusion of at least two (2) scholarly sources.
Your e-Tutor and I look forward to everyone giving the assignment your best shot.
Regards
Claudia