Case study1. Company-Specific Management Problems The first major management problem in this company was the lack of adequate sales and marketing management strategies. The company was unable to keep up with the market. Initially, the company's sales grew at a very rapid pace, but profits were small and flat, so much so that investors and directors had to freeze the company's budget. The company's website for soft items, such as clothes, sheets and towels, was not as efficient and needed improvement. Building a policy where you could set a price and revalue it was an immense task and changing the asset register and doing it enthusiastically was a very difficult thing to achieve. The company ended up filing patents for some of its activities. The second main problem was the lack of adequate documentation, policies and procedures. The informality that may work with particular staff members and a certain number of customers is simply not effective for business management. Every business needs adequate contracts, clear terms and conditions as well as effective staffing procedures. This company did not have adequate policies such that the program managers had no formal authority over anyone. It is also clear that the company did not have adequate recruitment procedures. For example, neither Terry nor Phil, who were considered the weakest performers, were hired into the company through the normal hiring procedures, which were very demanding. The third management problem in this company is the poor relationship between managers and employees, such that managers do not tell their employees whether they are working well or... middle of paper... only in cases where an employee is fired for poor performance or any other type of misbehavior. Another recommendation is to provide written procedures for employees to follow. It is a legal requirement for employers to provide their workers with written procedures before dismissing any employee. The procedure should be as follows: First, there is counseling and verbal warning. Then a written warning, which is given if an employee does not change his or her conduct after receiving counseling and a verbal warning. The third is the suspension and final warning. The employee is given a period of absence from work to change his conduct and improve his performance. The final step is a recommendation to terminate employment. This is granted if the employer finds it impossible to change an employee's conduct and poor performance status.