THE STITCH IT GROUP INC

 Timing of potential sale - 2003

 Stitch It – 3 locations in 1990 sold for $300,000
 CEO Baird – 1968 Grad now mid-late fifties in age
 Buyout Comark for $3M : 84 Stores/3 Brands
 Jennifer – 2000 Grad with no fulltime
managerial experience

OBSERVATIONS FROM REVIEW OF

STITCH IT GROUP CASE STUDY
  Given the facts presented in the Case Study, should CEO
Baird accept the buyback offer from Comark to re-
acquire the Stitch It Group of companies?
 Suggest two-three reasons/rationale supporting your
response!

BREAKOUT ROOM SESSION 1.0

 Baird as CEO with 35 years of direct Retail Selling business experience
 21 of 35 years as entrepreneurial owner/operator experience
 Fostered close-knit, collaborative workplace culture, nurtured
relationships
 Valued being on a “first-name” relationship with most employees
 Recruited and trained qualified Associates in the business plan model for
Stitch It Group
 Focused on having “right people in the right place!”

RATIONALE FOR POTENTIAL

BUYBACK
 Baird led the USA Expansion Program
 Market research led to high-traffic malls in
proximity to Clothing Retailers
 Addressed key staff shortage issues in USA expansion
program
 Intimate knowledge of USA tailoring
marketplace

RATIONALE FOR POTENTIAL

BUYBACK
 Huge USA expansion potential – 10 times size of Canadian market with ~
80 Stitch It stores = 800 locations US potential.
 Launched successful new “Can-Do” Brand
 Large Canadian potential for a Walmart “Sew Right” brand emerging
 Vested interest in growing the business he founded and then potentially
re-acquiring it for $3M

RATIONALE FOR POTENTIAL

BUYBACK
 Grad of UWO in 2000 with post-grad to 2003
 No full-time work experience
 No apparent interest in Stitch It Group store day-to-day
managerial operations.
 Wishes to immediately foster growth of “Can Do” and “Sew
Right” brands

JENNIFER BAIRD AS CEO?

  Would it be advisable for Baird to consider appointing his
daughter Jennifer to the position of CEO at this critical
juncture in the company’s development? Provide the
rationale for your response.

BREAKOUT SESSION 2.0

 Developmental options for Jennifer
 1. Procure an outside-the-company role in
Operations, Marketing, and Human Resources where
she can gain experience.
 2. Recruit/appoint a V.P./C.O.O. (perhaps female) to
mentor her for 5-7 years while Alain Baird focuses on
growing the US operations.
 3. Utilize psychological testing to evaluate strengths
and weaknesses and address through focused,
professional development courses.

JENNIFER BAIRD AS CEO?

  4. Identify standalone, business plan projects for
her to manage which allow liaison with Stitch It
Group Managers during project execution
 5. Selectively engage with Alain Baird on
special key acquisitions or expansion
opportunities.
 6. Insist that Jennifer undergo store management
training within Stitch It to provide for her future
managerial credibility.

JENNIFER BAIRD AS CEO?

 1.0 : In 250-300 words, given the facts presented in
the Case about Jennifer’s experience and the
associated managerial overview information
presented in the Module 2, Web Page, what would
your recommended course of action be for her
appointment to a management role within the
Company?

STITCH IT GROUP INC. CASE QUESTIONS

 2.0 : In 250-300 words, who should spearhead the
market development for two relatively new brands,
“Can Do” and “Sew Right” and what market and
managerial factors indicate selection of that person’s
leadership should be the recommended course of
action?

STITCH IT GROUP INC. CASE QUESTIONS