Two Men and a Truck

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  • Topic: Franchising, Franchise, Royalties
  • Pages : 6 (2009 words )
  • Download(s) : 150
  • Published : July 28, 2009
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1.How would you describe the conflict that took place between Melanie and the six disgruntled franchisees? Functional? Dysfunctional? I would say that the conflict is dysfunctional, because it is a destructive form of conflict. The six disgruntled franchisees banded together to take advantage of the loophole in the franchise agreement. They also threatened to use the name and logo of the company without paying the royalty fee. These clearly show that they intentionally caused the conflict with Melanie and TMT International. What do you think was the cause of the conflict?

The root cause of the conflict is that Mary Ellen was very lenient with the franchisees. Melanie gave them a firm hand in regard to paying their royalty fee and even increased the rate from 4 to 6 percent, which is even below the industry average rate. The franchisees rebelled because the franchise agreements were being strictly enforced as opposed to what they were used to with Mary Ellen. How was it ultimately resolved (what approach)?

The court upheld the TMT agreement. Two of the franchisees apologized and asked to return to the system while the other four were terminated. The approached used to handle the conflict was Integrative Bargaining, which operates under the assumption that one or more settlements can create a win-win solution . What was the BATNA?

Accommodating, since the franchisees had no choice but to give in since the court ruled in their favor. For the two franchisees that continued with their system, they got to keep their business and TMT was able to receive the intended royalties. 2.Describe and illustrate the evolution of organizational structure in Two Men and a Truck? TMT started out with a simple organizational structure. With only two movers then, Mary Ellen manages everything from scheduling the moves, paying the taxes, etc... When the business grew, Mary Ellen hired her daughter, Melanie, to step in as President to run the day-to-day operations. Melanie introduced the formal controls into the franchise system and strictly implemented the collection of royalty payments. Aside from these, she also increased the royalty rate from 4 to 6%, which is lower than the average royalty rate in the industry. Brig, the franchise recruiting director also implemented a new level of discernment to the review of prospective franchisees. These changes made TMT into a bureaucratic organization. How would organizational structure affect growth and market expansion? Organizational structure will facilitate the working relationships between various entities in the organization and may improve the working efficiency within the organizational units. When a business expands, the chain of command will lengthen and the spans of control will widen. What structure would you recommend Two Men and A Truck adapt? Why? I would recommend that TMT use the Matrix Structure, its design combines functional and product based divisions, with employees reporting to two heads. Creating a team spirit, the company empowers employees to make their own decisions and train them to develop both hard and soft skills. As an organization gets larger, its information processing capacity can become overloaded and the strength of the matrix lies in its ability to facilitate coordination when the organization has a multiplicity of complex and interdependent activities. TMT International has 119 franchise locations in 25 states, and because of this the company has grown into something that needs to be more efficient and I think the matrix structure can help them. 3.Define organizational culture?

Organizational Culture is defined as the specific collection of values and norms that are shared by people and groups in an organization and that control the way they interact with each other and with stakeholders outside the organization. It is also defined as a system of shared meaning held by members that distinguishes the organization from...
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