RetailMax Final
RetailMax Final
RetailMax Final
Lance Calkins
LDR 610
Introduction
experienced a downturn in business two years ago and laid off non essential employees.
One current employee, Cam Archer, was offered an opportunity to transition to the sales
team. Although Archer was not interested in sales, she did like the company’s
companies forecast demand, manage inventory, and save money (McGinn, 2006).
To rebuild the company, Todd Elman was hired as CEO. Under his direction, the
company excelled and grew to more than 100 employees while raising $38 million from
top-tier venture capitalists (McGinn, 2008). Archer found herself ready to move up in the
organization and was tired of the constant traveling in sales. Archer was offered two jobs
within RetailMax. The Vice President of Product Management and Marketing, Regan
Simultaneously, the Vice President of Sales, Vince Mangini, offered Archer a job in the
Professional Services Department (PSD). The DPM was just what Archer desired, less
travel and an opportunity to move up within the organization. The PSD department
offered greater pay with bonuses paid for good performance. Archer has a very
challenging decision to make when considering which job to accept. Archer must report
her decision to Kessel with less than a day to consider all her options (McGinn, 2006).
Although both Archer and Kessel have great potential power, Archer has the
greatest potential power. Archer is subordinate to Kessel and also has much less
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experience in the industry. Kessel founded his own retail supply chain software company
that sold to IBM in 1996 (McGinn, 2006). Archer has proven herself in the sales division
of RetailMax but has yet to prove herself in the marketing division of the company. If
Archer should accept the newly created position of Director of Product Marketing, she
Kessel’s power bases would focus mainly on legitimate and expert power. He
uses his expert power, which is shown by his successful software executive career
Product Management and Marketing (PMM). Archer uses her social and referent power
customers, has good working relationships and influence with her co-workers and
company leaders, and has a very good understanding of the social networks within
RetailMax.
Stereotypical gender roles did not influence Kessel or Archer to proceed in any
certain manner. Kessel and Archer’s correspondence was professional and did not
involve discrimination of gender. Kessel very much wanted Archer to transfer into his
division. Archer had a close professional relationship with the CEO Todd Elman and had
Archer had a very good reputation with the CEO Todd Elman and her supervisor
in the sales department. Archer had a great relationship with the company’s founder who
moved on to become the Chairman Emeritus. It was also during this period that one of
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Archer’s colleagues was promoted from within the sales group to become the first Vice
President of Sales. CEO Elman was interested in keeping Archer with the company when
Archer requested a transfer out of sales. Both the VP of Sales and the CEO supported her
request to transfer into the Marketing Division (McGinn, 2006). Archer had not built a
relationship with the new Vice President of Product Management and Marketing (PMM)
and asked Elman to recommend and assist her with transferring to PMM. Elman, Kessel
and Archer met, and as a result, a new position, Director of Marketing, was created. As
employees and customers as smart, diligent, and valuable. In the sales department, Archer
had performed very well, carrying an annual quota of $1 million. Archer’s co-workers
spoke very highly of her and voiced confidence in her ability to make the most of her
Kessel and Mangini most likely focused on recruiting Archer based on pay.
Kessel was at a disadvantage as he was limited to the amount he could pay Archer while
Mangini could offer Archer a greater salary than Kessel. Archer did consider salary as a
part of her decision but also wanted to cut down on travel and have the opportunity to
develop skills that will position her for rapid professional growth within the company.
Accepting the Director of Marketing would allow Archer to accomplish her corporate
goals although her salary would be reduced. Accepting the Director of Marketing would
strengthen her power within the organization by increasing her depth within the
Kessel should hire Archer based on her dedication to the company and her proven
track performance. Archer has the qualifications to step into this newly created position
with her sales experience and working relationships with customers. Hiring Archer would
increase his power within the organization. Archer could bring Kessel’s division to new
heights the company has never seen before. There are possible positive effects by hiring
from outside the organization include salary saving and increased job satisfaction by
Archer’s Compensation
Fortunately, the company has provided Kessel with flexibility in the salary he can
offer Archer. With an additional $200,000 to allocate, he should offer Archer a base
salary of $140,000 (which is higher than what Archer believes will be her base salary,
thus compensating for the lack of bonus structure), hire an administrative support person
for $40,000, and increase the salary of each product manager within the department by
$4,000 annually. Additionally, Kessel should consider placing the recently created two-
person marketing team under Archer’s direct supervision. This will satisfy Archer’s goals
equity within the department as Archer will have management responsibilities in addition
With the increase to her base salary, additional management responsibilities, and
less travel, Archer should accept the position of Director of Product Marketing. This
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position will allow her to utilize her solid sales and customer service experience within
the company while more fully developing the skills she learned while completing her
MBA. It should also better position her for future upward movement within the company.
Social Power
Although both utilized effective social power, Archer used her social power most
effectively. Archer showed that her interest lies within the best interest of the company.
She puts the organization first before her own monetary interest. When Archer accepted
the emergency challenge in turning around Toys N’ Stuff, she transferred from a
salesperson that earned valuable monetary rewards into an assignment that denied her
commissions. Archer knowingly accepted the challenge that did not allow her to make
commission on $700.000. Her social power had a great influence on the company.
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References
McGinn, K., Witter, D. (2006). Retailmax: role for cam archer. Harvard Business
Publishing
McGinn, K., Witter, D. (2006). Retailmax: role for regan kessel. Harvard Business
Publishing
McShane, S. L., & Von Glinow, M. A. (2008). Organizational behavior (5th ed.). New
York: McGraw-Hill
Northhouse, P. G. (2010). Leadership theory and practice (fifth ed.). California: SAGE
Publications, Inc.