Reference no: EM133193189

Assignment - Case - When Your Personality and Job Don't Match-Time for a Change: Cynde Greer began working for a well-known federal agency as soon as she graduated from high school. Not unlike many young people first starting out, her decision was based on the hourly pay and good benefits. But after working there for a very short period of time, she realized she didn't really like the job or the organization. The environment was very bureaucratic, stifling, and unfair. Cynde said, "My manager would give me work to do, and because of my work ethic, I would do the job to the best of my ability. After a while, my manager was giving me more work than the others, and I asked why. The manager said, 'I know you will do it and do it right.' So right then I knew if you show any drive, initiative, and know-how, you are NOT going to be promoted! They promote the people that can't get along with others and don't do the work!"

Without a college degree, she didn't think she could find a better job, so she continued to work at the federal agency. Over time, the negative environment really wore on Cynde's mental state. As she describes, "It is hard to work somewhere for 18 years where the only type of feedback you get is negative. We were never complimented on our work or told we were doing a good job." Finally, the last straw was when her manager came to her and told her that of her two days off each week, she would have to give up Fridays. That was the turning point. Although she only needed to put in two more years of service to be eligible for early retirement, she knew she was too angry and stressed out to make it. So she quit.

As a member of a dual-income family, she started looking for another job. One day on the radio, she heard an advertisement for massage therapy school. She had always enjoyed getting a massage and pampering herself, so she decided to apply. Cynde was accepted and immediately knew she had made the right decision. Cynde said, "It just felt right! The day I gave my first massage, I got such positive feedback. I had not had that in my previous job. Helping others has always been important to me, and with massage therapy, you can see the transformation-the help you are providing people is apparent immediately. I thrived on the positive feedback."

Although Cynde truly felt her career move was the right decision, she and her husband, John, had to figure out if they could financially handle the $10,000 or so initial investment (including the cost of school) necessary to get Cynde started as a massage therapist after graduation. Based on their calculations, Cynde would have positive cash flows within the first year of operation that would enable her to effectively manage the debt she would incur. John's best estimate on breakeven was about eight years. This estimate included the assumption of additional investments (e.g., continuing education units [CEUs], equipment). They decided to go for it!

Three main types of legitimate massage therapy exist. The first type is somewhat "spiritual" in the sense that the body's aura and energy are emphasized. The second type is focused on recreational massage or "spa therapy," which is often experienced at resorts. The third type is medical or health related. Cynde wanted her business mission to be the latter, helping people with pain management. She rented a 325-square-foot facility for $300 per month. Cynde did the painting, decorating, and Web site herself to keep her costs down. She initially tried joining business associations and various advertising strategies but soon realized the best way to get dependable customers was simple word of mouth.

After three years in business, Cynde is doing well. She charges $65 per hour with rate differentials for more or less time. Financially, she is making double what most therapists make. Her clientele is composed of individuals 35 years of age and older, with 85 percent being women and 50 percent being recurring customers. The business flows are somewhat seasonal-Christmas and spring are the most active periods. From January to May, her schedule is quite full, with summer being the slowest period. Cynde believes she has done better than most, even during economic downturns, because of her mission. People with pain don't take breaks. Her services are always in demand-so much so that in addition to her clients, she is now teaching classes at the massage therapy school! Her massage classes include Swedish, spa, sports, chair, and special populations (e.g., pregnancy), as well as courses in business management and laws/ licensing. In addition, she sublets her facility off and on to another therapist when she is not using it. Even though the sublet brings in additional revenues, it is not a dependable arrangement.

At this point, Cynde is faced with another decision to make. What to do next? She has identified four possible alternatives.

Implement a stability strategy and continue operating just as she is currently.

Grow the business through independent contractors. She has spoken to her landlord and believes she can get the space next door, which is between 1,000 and 1,200 square feet. While the rent is negotiable, Cynde believes she may be able to negotiate a rate between $700 and $1,000 per month. The space is already set up for dividers, so she could conceivably put two to four other therapists in the space in separate areas. In addition to a bathroom, it has an area for a washer and dryer, which would enable Cynde to launder on site the sheets, blankets, and towels used by her clients. Cynde would rent each space for $600, which would include the use of her established business name, the space, utilities, and washing/drying services. Each therapist would handle all of his or her own customers, including appointments, billing, supplies, etc.

Grow the business by hiring employees. Assuming she could get the space next door under the same terms and conditions described in alternative 2, Cynde would hire one to two massage therapists, rather than using independent contractors. The employee could be paid $15 per hour to be on site for six to eight hours five days a week and could earn tips from clients. Because she is now teaching at the massage school, Cynde believes she will be in a position to offer an opportunity to the best graduates.

Diversify the business by becoming a full-service salon. This alternative would require moving to a different, larger, and more visible business location. The facility would need two separate entrances-one for massage therapy services and one for traditional salon services. Her daughter is thinking about cosmetology school, and this would be an opportunity for Cynde and her daughter to work together, with her daughter ultimately having something tangible as a career alternative. The full-service salon would provide hair styling, manicures, pedicures, a variety of massages (e.g., health, sports, spa), and personal care products. The salon would employ full-time employees as well as utilize independent contractors.

Case Questions -

Q1. What type of MBTI decision style do you think Cynde has? Explain.

Q2. Based on your answer to question 1, what are Cynde's strengths and blind spots when making important decisions?

Q3. Help Cynde with steps 3 and 4 of the decision process (e.g., see Exhibit 3-2) by gathering information from the library and the Internet. Using this information and what you have learned from this chapter, how would you advise Cynde to proceed? Discuss.