John Culbert, the vice president of credit management at Ferguson, an expanding building supply company with $11 billion in annual sales, has been tasked by upper management with consolidating the company's credit function for better efficiency. Ferguson leads a team of 10 regional credit managers, most of whom have just arrived for a four-day brainstorming session. During the session, the managers present options for reorganizing their regions, which together include about 190 credit managers working at branch offices. How can Culbert consolidate the credit function while continuing to meet customers' expectations? What structure would reinforce an "ideal" strategy for the firm and how might Culbert implement this structure? In this case, students analyze the company's history, organizational structure, and financial data, to determine what actions Culbert should take.
Case ID: 080411