Correct these 3 answers without changing a lot of things. Use the rubric and the professor's comment to do the corrections. Shouldn't take too long to correct.

Martin Pena

Sept 23rd , 2024

Module 1 Exam – Stage 2

1. Chase Russell is not the right person to lead Russell Fischer car wash due to his lack of experience, emotional involvement and for his reluctance to fully commit to the business. First, Chase planned on working on real estate and had the dream of not working in the family business to create something by himself. He had to work at the family business because his dad wasn’t there anymore, so he had to help his mom. This lack of interest in the family business could affect his long-time performance and vision in the business. Second, his emotional connection to the business, due to his father’s tragic death, could affect to his judgement and decision-making abilities. In addition, the compromise he must help his mom economically, could also affect because his main priority is to help her mom economically, the business success is secondary for him. Lastly, his early struggles with managing the company, handling financial controls, employee theft, and his own professional development, tells us that he is not ready to lead a company.

1. Chase Russell is susceptible to failure because of his tendency to avoid difficult conversations such as succession planning and equity because he struggles to address key problems with his mom and Eddie, making it very difficult to solve situations like his equity stake and long-term control of the company. Even though he recognizes the need to resolve these different situations, he hesitates to press his mother and Eddie for a resolution, and that took him to months of a stuck process. This avoidance undermines his leadership and creates uncertainty about his future in the business. His reluctance to push for decisions and confront problems shows that he struggles with handling tough conversations. These problems could hurt his ability to lead effectively, making him vulnerable to failure as a leader in the business.

1. Chase faces 3 big uncertainties in the company and he could effectively mitigate them by proactive conversations and expressing his desires to his mom and Eddie. His first uncertainty is equity and ownership structure, because he is unsure of his future stake in the company. He could mitigate this by going straight forward to his mom and Eddie, possibly involving a lawyer to negotiate a clear agreement. The second uncertainty is the lack of an elaborated succession plan. Chase should initiate discussions to create this succession plan, ensuring clarity to prevent any future situation. Finally, market competition and profitability present big challenges, as the car wash industry is growing and getting very competitive. Chase could mitigate this problem by focusing on innovating their car wash and constantly reinventing themselves. A good option could be expanding automated car washes and optimizing operational efficiency.