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Western Agencies Ltd

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Western Agencies Ltd
Western Agencies Ltd. by Steven L. McShane University of Western
Australia Perth, Australia
Copyright © 1991 Steven L. McShane. This case is based on actual events described in a Canadian court case. Only the dates and names of the main parties have been changed.
This case may be used by current adopters of: S. L. McShane
Canadian Organizational Behaviour, 5th ed. (Toronto: McGraw-
Hill Ryerson, 2004); S. L. McShane & M. A. von Glinow,
Organizational Behavior, 3rd ed. (Boston: McGraw-Hill, 2005); S.
L. McShane & T. Travaglione, Organisational Behaviour on the
Pacific Rim, 1st ed. (Sydney: McGraw-Hill Australia, 2003)
Western Agencies Ltd.
By Steven L. McShane, The University of Western Australia
Western Agencies Ltd. is a manufacturers' agent representing Stanfields, McGregors, and several other men's fashion manufacturers in Western Canada and the Pacific Northwest of the United States. Jack Arthurs began his employment at Western as a warehouse worker in 1962. In 1965, he became a sales representative and was given responsibility for the company's business in the interior region of British Columbia. In 1973, he was transferred back to Vancouver and assigned several large accounts, including all Eaton's stores in the Lower Mainland.
Over the years, Arthurs bought shares in the company and, by 1979, held nearly one-third of the company's issued nonvoting shares. He also enjoyed a special status with the company founder and president, Mr. A. B. Jackson. Arthurs was generally considered
Jackson's "number 1 man" and the president frequently sought Arthurs's ideas on various company policies and practices.
In 1980, the senior Mr. Jackson retired as president of Western Agencies and his son, C.
D. Jackson, became president. C. D. Jackson was seven years younger than Arthurs and had begun his career in the warehouse under Arthurs's direct supervision. Arthurs had no illusions of becoming president of Western, saying that he had neither the

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