Gelle's Building Products manufactures metal-based, vinyl-coated home construction and renovation materials. The products include storm doors, screen doors, windows, dormers, storage sheds, frames and braces for sun decks and Florida rooms, decorative fencing, and swimming pool cabanas. The common element is the decorative, low-maintenance, and weather-resistant vinyl coating over a strong and durable metal base.

Gelle's sales in fiscal 2021 totaled $22 million. Over the prior ten years the annualized rate of growth in sales averaged 3.6 percent.

Gelle's sells primarily to small familv-owned construction and home repair companies throughout the mid-Atlantic region. The marketplace is intensely competitive. There are several producers of similar products, and there are many home builders and remodelers, each of whom has a favored supplier of materials. Further, large home products retailers create obstacles for Gelle's, whose size is insufficient to capture much shelf space.

John Chudovas has been the chief operating officer at Gelle's Building Products for almost a dozen years. Over this period Gelle's financial performance has been solid but not spectacular.

John has earned the reputation of being a very diligent and dedicated worker. He is appreciated throughout the organization because he listens attentively and allows those on the front line to do their job. However, John is not averse to stepping into the fray, mediating disputes, and making a decision.

The current controversy over the firm's accounts receivable policy irritates John. He believes that details are best handled at the operational level. However, given that Sandy Koopmans is a new employee and emotional memos have been circulated, John feels his involvement is essential.

Because of the lack of consensus, John has called this meeting. His goals are to discuss the situation and to make a decision, if not build a consensus.

John is seated at the head of a conference table, flanked by his immediate and disgruntled staff.

John knows they are frustrated by recent events, and their mood is reflected by the absence of the usual good-natured bantering. Each is looking for John to solve the problem.

The hastily scheduled meeting has only one agenda item: the firm's accounts receivable policy.

John, the chief operating officer, is being forced to make a decision that ordinarily is made at a lower level. However, the newly hired vice president for finance and accounting, Sandy Koopmans, has recommended a change in policy, and senior staff members have objected.

Write a memo to John Chudovas. What should he do? Why? What should he tell his staff?