Mid State Hauling

Company
Advanced Quantitative Business Analysis

Outlines
Introduction to Mid State Hauling Co.
Company Overview
Key Events and their potential issues and

concerns
Proposed Solutions
Conclusion

Introduction to
Mid State Hauling Co.
The Mid State Hauling Co. is a family owned
business that went through 3 generations for
over 55 years.

1st Generation

nd

Walter
rd
2002

Mike Sr. &

Maureen
(Ended in 1999)
1953

Mike Jr.
1976

Vanessa
1988

Generation
Charles
2004

3 Generation

Robert
1987

Robert Jr.
2008

Company Overview

Mid State Hauling Co. was found in 1953 by Mike Coasts Sr.

The business was firstly specialized in trucking and started

with only one dumping truck then expanded further.

In 1980 Mid State Hauling acquired a dumper & wasteremoval services.

In 1988 the business had expanded to include real estate

rental, delivery services, and moving & storage services by
Maureen and Vanessas efforts.

In 1992 the company name had changed to mid state

trucking & storage.

In 2008 the company had faced financial struggle for the

first time in 55 years.

Key Events

Parents retirement & succession plan

3rd Generation joining the business

The beginning of company financial struggling

Presidents reaction towards the problem

Parents retirement & succession

plan

In 1999, the founder Mike Sr. and his wife Maureen

decided to retire.

Succession plan was formed to divide the company

into 3 equal shares for each of the second generation.

Succession plan was formed to secure equal pay for

second generation members regardless of positions.

Potential issues and

concerns

Assigning an equal pay for successors positions

regardless of the load of work, responsibilities and
titles.

3rd Generation joining the

business

In 2002 Walter had been hired and promised to be the president in

future

In 2004 Charles had joined the company and promised to be senior

vice president.

In 2005 Robert Jr. Joined the business in an entry level position.

Potential issues and

concerns

Decisions in regard to hiring 3rd generation family members seem to

be favorable and driven by Mike Jr.s authority rather than
qualifications and board agreement.

Potential concern that other partners Vanessa and Robert are feeling
depressed because of Mike Jr. authority abuse in hiring his sons at
high status positions.

Potential concern that Mike Jr. delegation to descent skilled sons is a

factor affecting the hauling division business performance and
contributed to sales drop.

The beginning of company

financial struggling

In 2008, Vanessa met the accountant and discussed newly raised

financial concerns with him and asked him to present the issue to
Mike Jr.

Sales of the companys three divisions were dropping down. Vanessa

and Roberts divisions were still profitable while Mike Jr.s division
experienced severe drop to an extent that made it unprofitable.

Potential issues and concerns

Economic turndown can be a reason contributed to sales drop and it

affected divisions differently based on their nature.

Divisions management incompetency might be a reason that

assisted the economic turndown in affecting sales.

Presidents reaction towards

the problem

Mike Jr. blamed Vanessa for not being at top of the financials while
the problem was drop in sales.

Mike Jr. explained cutting cost plan proposed by the accountant

incase sales continue dropping as a payback move from Vanessa
and acted accordingly.

Mike Jr. proposed a quick decision of cutting Vanessas salary without

investigating the situation.

Potential issues and

concerns

Financial position of the company is still healthy and sales drop

should be investigated further for its cause and effect.

Mike Jr. attitude and un-solid accusations based on no evidence may

lead to more complex situations if Vanessa decided to leave.

Proposed solutions

The issue of dropping sales:

An immediate investigation should take place to evaluate the causes behind

dropping sales in each division by comparing each division drop with industry
average drop:
- If divisions performance was bellow industry average = incompetent
mgt.
- If divisions performance was higher than industry average = efficient
mgt.
- If divisions performance was equal to industry average = competent
mgt.
Result:
Company will have clear vision where to cut cost, replace management or
perhaps seek professional consultancy to enhance performance.

Contd

The issue of Mike Jr.s abuse of his authorities and attitude.

Companys policies and procedures manual should be fairly written

and strictly followed by the company to limit misconduct in hiring or
other practices which might affect businesses or equal chances.

Major managerial decisions should be approved from all board

members as Mike Jr. proved to use his power for personal desire or
gain and that might affect the business.

Results:

Company will be following professional conduct in all processes

specially in hiring which will attract qualified calibers to the company.

Mike Jr. level f authority will be tamed which will reduce the level of
tension between board members and insure fair treatment.

Contd

The concern about Mike Jr. decision to cut Vanessas salary as a start
of cutting cost plan.

Vanessas salary should not be affected before the sales drop

analysis report is provided and outcomes justify that action.

Result:
- Vanessa will continue in working and supporting the company during
the financial struggle.

Contd

The issue of possible incompetent management which can be the

reason behind sales drop.

The company should hire a third party consultant to make an

assessment report that analyze the needed qualifications for each
position verses the responsible current persons qualification.

Result:

Company will be able to notice the gaps between the existing

employees performance and expected KPIs

Company will be able to take actions either to train, change position,

or terminate an employee contract.

Company will assure fair payments for each position based on

qualifications and productivity.

Conclusion

The mid state company healthy balance sheet can support the
company to over come the situation.

Its the right time for owners to act responsibly as the situation
demands that, and they all should put their personal disagreements
aside and focus on the company.

The case study addressed many conducts that happened in the past
and proposed solutions which can resolve more than one issue at once.

If the company applied proposed solutions, business will allocate

current employee where will be fully utilized and be paid accordingly.

Proposed solutions will insure maximum efficiency and profitability.

Proposed solutions will mitigate management conflicts also tame

absolute authority of the president.

Discussion Area

The lecture was

presented to you by,
Hattan Bahebri
Muhannad Alhumaid
Wael Kabli
Ameer Beyari
Nabel Ahmad

NBM 064
NAM 034
NBM 065
NAM 067
OBM 025

The End