Mr Abuhas set up a Limited Liability company as a retail business. He employed a Managing Director to manage the affairs of the business. The managing Director open vacancies and employed several subordinates into the company to work under him. Two years down the line,The MD resigned from the company and one of the employees was promoted as the New MD. During the First MD regime, Sales staffs were meeting their targets over and above expectations but as soon as the New MD assumed his position two Sales staffs resigned and hence sales within the first term ofh is office fell 15%. a.What type of people do you think he employed? b.What challenges do you think the new MD will face? c.What should the new MD do?

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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Mr Abuhas set up a Limited Liability company as a retail business. He employed a

Managing Director to manage the affairs of the business. The managing Director open
vacancies and employed several subordinates into the company to work under him.

Two years down the line,The MD resigned from the company and one of the employees

was promoted as the New MD. During the First MD regime, Sales staffs were meeting

their targets over and above expectations but as soon as the New MD assumed his

position two Sales staffs resigned and hence sales within the first term ofh is office fell 15%.

a.What type of people do you think he employed?

b.What challenges do you think the new MD will face?

c.What should the new MD do?

d.As as staff of the company, what will you feel or think?

e.What type of leader is the new MD?

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