Atlanta Home Loan

461 Words2 Pages
Case study of Atlanta Home Loan Atlanta Home Loan was a mortgage lending and financing company based in Atlanta, Georgia. The Al Florin is the founder who has many years experience. His company grows rapidly, in 2002; Joe was admitted to an MBA program in California and was faced with 3 choices for AHL: sell it, shut it down, or find someone to run it. As it was a profitable business with considerable growth potential. He decided to find someone run this company, after his selecting, he finally choose Wilbur instead of Joe. This is the disaster begin for AI and the AHL. What did AI did wrong? 1. In strategic aspect, AI should provide a good environment to employee, give them the object and goals, and also provide some motivation give rewards, to let employee works to him more honestly and royalty. An honest and ethical culture should be developed to encourage employees to do the “right” thing at all times. 2. In action control, AI has fault in delegation and not gives enough autonomy to employees and partners to perform some managerial function. Particularly, he should clearly identify administrative constraints to restrict partner’s and employee’s ability to make decisions. Like he should limited and restrict with the authority of Wilbur by write some clearly contract for delegation of AHL. 3. For Administrative control, AI would not let Wilbur sign the checks he left four unsigned checks with Leticia which in turn defeated the purpose of him not allowing Wilbur to sign the checks. In this case, he did use the right action control but he failed to implement it properly 4. in the other aspects. Al Fiorni did not properly set up personal and cultural controls. I believe his biggest mistake was not preparing his company for his departure in a timely manner. Because he was in such a rush to get to California he was not able to ensure the personal control of
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