There are two critical questions which are important to the case. These are:

What should Dick Mayer do about Loy Weston? What do you think of Dick Mayer's "Stages Theory" of country management responsibilities?

What should Dick Mayer do about Loy Weston?

Dick Mayer has to be very careful while evaluating his options of what to do with Loy Weston. There are several actions that Dick Mayer can implement against Mr. Weston. I would like to evaluate the effectiveness of each one of the actions and finally recommend the best solution. We have to realize that Mr. Weston is a very competent person, who has been exposed in a wide array of entrepreneurial situations and his business instincts and knowledge should be appreciated.

First, Mr. Mayer can terminate Loy Weston. If he chooses to do so, he will get rid of an "organizational nightmare" and the problem is solved. Furthermore, he does not have to spend time and energy worrying about whether Mr. Weston is obeying company policies and headquarters decisions. The negative aspects of terminating Mr. Weston are all of the following: He may start working for one of Kentucky Fried Chicken's (KFC's) close competitors and with his knowledge abou

Third, Dick Mayer can send somebody from headquarters to work closely with Mr. Weston on a horizontal control level. Such a parallel managerial relationship between Mr. Weston and another person would result in a team consisting of a bureaucrat and an entrepreneur. By combining the skills of the two, KFC's headquarters can utilize Mr. Weston's entrepreneurial skills under corporate control over operations. It is crucial that the headquarters manages to find a person who is able to complement Mr. Weston's weak areas, such as following corporate policy and making use of the proper channels of command. There are however some risks associated with this approach. Mr. Weston may not accept such a coworker. It may be impossible for the person to work with him, and Mr. Weston may even turn the new manager into another "organizational night-mare". It is therefore very important that a potential senior manager is assigned to work with Mr. Weston.

First, the entrepreneurial stage, which is identified with highly flexible top-management control and a foreign operation where the country manager has complete responsibility. This is a highly multinational approach, and requires a high level of decentralization of the organization.

Second, Dick Mayer can chose to relocate Mr. Weston within the organization. By this approach, Mr. Weston will have less authority and top-management control can be enhanced (centralized control over international subsidiaries). It is important, however, that Dick Mayer will be able to find an area in the KFC organization where the corporation can utilize his great entrepreneurial skills. Mr. Weston must understand that he is important to the company and that the reason behind the transfer is to better utilize his skills and experience. However, there are some negative aspects to this approach. Mr. Weston may not accept the new position, and bitterness may interfere in the quality of his work. Even if he is transferred to a new position, he will still be an organizational nightmare in the organ

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Approximate Word count = 1365
Approximate Pages = 5 (250 words per page double spaced)