Carter Cleaning Centers
Jennifer Carter graduated from State University in June 2008 and, after considering several job
offers, decided to do what she always planned to do—go into business with her father, Jack Carter.
Jack Carter opened his first laundromat in 1998 and his second in 2001. The main attraction of these
coin laundry businesses for him was that they were capital- rather than labor-intensive. Thus, once
the investment in machinery was made, the stores could be run with just one unskilled attendant
and none of the labor problems one normally expects from being in the retail service business. The
attractiveness of operating with virtually no skilled labor notwithstanding, Jack had decided by 2004
to expand the services in each of his stores to include the dry cleaning and pressing of clothes. He
embarked, in other words, on a strategy of “related diversification” by adding new services that
were related to and consistent with his existing coin laundry activities. He added these for several
reasons. He wanted to better utilize the unused space in the rather large stores he currently had
under lease. Furthermore, he was, as he put it, “tired of sending out the dry cleaning and pressing
work that came in from our coin laundry clients to a dry cleaner 5 miles away, who then took most
of what should have been our profits.” To reflect the new, expanded line of services, he renamed
each of his two stores Carter Cleaning Centers and was sufficiently satisfied with their performance
to open four more of the same type of stores over the next 5 years. Each store had its own on-site
manager and, on average, about seven employees and annual revenues of about $500,000. It was
this six-store chain that Jennifer joined after graduating. Her understanding with her father was that
she would serve as a troubleshooter/consultant to the elder Carter with the aim of both learning the
business and bringing to it modern management concepts and techniques for solving the business’s
problems and facilitating its growth.
Questions
1-19. Make a list of five specific HR problems you think Carter Cleaning will have to grapple with.
1-20. What would you do first if you were Jennifer?
