F.X. Pounds, Inc. Case Study
Jeffery N. Shane
F.X. Pounds, Inc. (FXP) has a tough road ahead of them, given the recently learned information through Pam’s research. Much larger companies have moved into the territories that have been serviced by FXP for years. Unfortunately, FXP’s customer offerings may not be enough to sustain the company into the next generation. There are a number of key elements that are possible hindrances to the sustainability of the organization. One of the main issues Pam must face is organizational succession, and who will be the next person in line to run the company.
According to the F.X. Pounds, Inc. Case Study (2011), there is no current interest from family members that would like to run the family owned business. However, this could be of a grave detriment to the organization. According to D. Kelvin Berchelman (2005), faulty succession planning can lead to dissolution, and without projecting and identifying key benchmarking needs of the organization, it will find itself hard pressed to compete with its current competition. Succession planning is not just for top spot, but it is throughout the company in order to develop strengths that will be needed to compete. It must draw of strengths of new talent for sustainability for longevity. If Pam fails to develop a succession plan, uncertainty quickly implements itself throughout the organization as its operations continue, and the family pride that FXP has devoted itself to for over 130 years, may find itself being led by a non-family member.
FXP is faced with some stiff competition, however they do not have a lot of moves in order to compete at a higher level. According to F.X. Pounds, Inc. Case Study (2011), currently, Miller Fuel, a larger competitor has the ability to convert FXP customers at a very high rate, also services their coverage area along with the A & F Group. Two larger organizations exist, as well as a...