SECTIONA
QUESTION1- CASESTUDY(17 MARKS)
CASE:TGIF
It's 4:30 on a Friday afternoon and the weekly beer bust is in full swing at Quantum
Software's Windhoek headquarters. The sun shines on the volleyball court and beyond; the
patio sparkles over a dazzling view of the swimming pool. Every week most of the
employees drop in to unwind and relax at the beer bust for an hour as a reward for extra
effort. Quantum Software was founded three years ago by Stan Albright and Erin Barber
based upon an idea they came up with in college for forming a business aimed at developing
and selling computer software specifically oriented to the needs of indep~ndent oil
businesses.
Few of these firms grow large enough to do their own data-processing systems. Quantum
has grown to more than 200 employees and $95 million in sales over the past three years.
One Friday afternoon, Bill Carter, the corporate attorney, dropped in to attend a business
meeting. After the meeting, he was invited to mix in with employees at the weekly beer
bust. "What a great place to work! "Several people told Bill. The spirit of Quantum
continually amazed Bill. Stan and Erin knew how to keep things hopping and yet hold morale
at an enthusiastic level.
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To counter the frantic work pace of 16-hour days and six-day weeks, Quantum had a beer
bust every Friday afternoon. Everyone was invited, from Stan and Erin to the part-time
janitor who worked nights. No ties, no suit coats, first names only: this was a great way to
encourage the team concept. Lately though, Bill Carter had been having second thoughts
about serving alcohol at a company-sponsored party. He made up his mind to speak to CEO
Stan Albright about it and started toward the pool where Stan and Erin were holding a lively
discussion with three employees. Just then, John Hooker,a new program"rher in software
development, lost his balance and fell on the snack table, sending finger sandwiches flying
in all directions and getting a round of applause. "All right, John!" several people called out.
More determined than ever, Bill approached Stan and Erin and said, "Don't you think this
party thing is getting a little out of hand? It used to be a lot of fun, but now maybe we're
growing too fast. We're getting more people like John there, who just seem to overdo it."
"Take it easy, Bill," said Stan. "The atmosphere around here would get stale real fast if we
couldn't blow off a little steam now and then." "Come on,Bill,"Erin added, "lighten up. We
need this time to relax and for everyone to socialize over a beer without the pressure of
work." "You should know, Bill, how much these parties mean to our success.I really feel
that one of the keys to our continued growth has been the family feeling among our
employees. On Fridays at our TGIFget-togethers,we all get to know one another as equals.
That gives me the right to kick butts when I have to because they know I like them and want
them to succeed. That's the real value of these parties." "Okay, Stan, so you tell me," asked
Bill, "what's the value in having someone like John who has had too many beers driving
home and possibly causing a serious accident? Do you realize that Quant.um could be held
liable in such an instance?" "Bill," responded Erin, "you know I'm the one who first thought
up the idea of having a Friday bash and I still think it's a great idea. I agree with Stan that
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