1. Do you agree with the power strategy chosen by Gregson? Enumerate the pros and cons of each?
2. How do you think Gregson will be able to overcome the challenges faced by him from Bancroft's recommendation?

1. In order to improve the company's customer service, foremost would have to focus on improving several aspects and processes of its business. Evaluate the challenges company will face in implementing the plan which includes developing new programs that have organization-wide impact?

1. Analyze Diana's profile, interpret the skills she has obtained throughout her journey by giving suitable instances from the profile. Also, mention the skills that will be utmost useful in heading customer service department.

1. What decision would you take after knowing that Diana recovered from Cancer and challenges Tony mentioned? Give reasons for your decision.

1. Assume that Diana is hired as head of customer service department, discuss the assistance/training should would need in her new role?

Richard Ivey School of Business The University of Western Ontario FOREMOST DEPARTMENT STORES INC. IvEy Dave Shaw and Elizabeth M.A. Grasby revised this case (originally titled "Matt Moreau's Dilemma" written by Professor Jeffrey Gandz) solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. Copyright 2012, Richard Ivey School of Business Version: 2012-08-07 At a Foremost Department Stores Inc. (Foremost) meeting of company executives on May 3, 2012, Ryan Gregson, vice president of the customer service department, Foremost's newest department, asked Doug Bancroft, vice president of human resources, if he could recommend employees who might be capable of taking on a leading role in the newly created department. It was imperative to Foremost's success that Gregson hire the right person for this position. On May 15, while at a meeting in Gregson's office in downtown Winnipeg, Bancroft brought forward the name of his first candidate for such a position: I think we have the perfect candidate for you, Ryan. She's Dianne Reilly, a store manager in one of the mid-size Winnipeg suburban stores. She's been with the company for 15 years. She is in her mid-thirties. Dianne is ambitious, smart and anxious to get some head office experience at this point in her career with the company. Bancroft's recommendation gave Gregson a lot to think about. Gregson faced two challenges. The first was to appoint the right person to help lead the department, and the second was to ensure company-wide acceptance of, and compliance with, the new department's goals. If the customer service department was to be taken seriously, it would need the right people to lead it in the right direction. CUSTOMER SERVICE DEPARTMENT Foremost Department Stores Inc. (Foremost) was a public company with its stock traded on the Toronto Stock Exchange. The president, Allan McAllister, was the leading force in establishing the customer service department and, in early February 2012, had appointed Ryan Gregson as vice president in charge of the operation. McAllister was concerned about the overall fair to poor quality of customer service in the department stores, and he wanted to make superior customer service Foremost's competitive advantage in the challenging retail (department store) market. It was four years since the U.S. financial collapse brought recession to Western economies. The Canadian economy still remained sluggish in several regions of Canada where Foremost had stores, and the company's sales and profits in these stores had continued to decline. In addition, in 2011, U.S.-owned Target purchased the HBC-owned chain, Zellers, a direct competitor, especially on price, to Foremost. Target planned to convert many of the Zellers stores to Target stores and auction off the remaining Zellers stores to other retailers. Target stores, known for excellent prices, promised even greater competition and would be in full operation across Canada in late 2012 and early 2013. The formation of the new customer service department was timely because of the need to help improve Foremost's customer service and to