The president

1. It was a cold February afternoon in New York City. Peter Crawford was sitting in his office on the fourth floor of the Madison Building. He had just finished dictating the last memo of the day. He turned off the dictating machine for the first time in nearly a month, took some time to relax and just think.

2. His luncheon with Jim Burke had taken place only four months earlier. UEI had made him a very generous offer, including a five-year contract and a salary increase. At first, Crawford wasn’t sure what to do. The offer was to turn down. He needed time to think. He had told Burke he would give him an answer in two weeks.

3. Crawford had been happy at ESI. The company was growing, and he was growing with it. There was still a lot to do, a lot to finish. He didn’t like leaving in the middle of a job. But it was a terrific opportunity, one that might never come again. After talking the matter over with his wife, he had decided to accept the job. He sat down that same evening and typed a letter of acceptance.

4. Eight weeks after writing that letter Crawford was named president of Audio Performance. So here he was, in charge of a major corporation with revenue in excess of $80 million a year, 1,800 employees, and manufacturing plants in Baltimore, Hartford, and Boston. The firm’s corporate headquarters were located in New York City, occupying four floors of a midtown office building.

5. Audio Performance had been set up about 25 years earlier, at the beginning of the hi-fi boom. Having gotten in on the “ground floor”, it had led the increase in growth and profits. At first AP produced only tape recorders and receivers, but the line had since been expanded to include speakers, microphones, earphones, and other components.

6. Recently, however, a number of problems had begun to develop. Domestic competition had been increasing; in addition, lower labor costs abroad, particularly in the Far East, had permitted foreign manufacturers to sell their products in the United States at prices Audio Performance couldn’t meet. These were some of the problems Peter would have to face as president.

7. In addition to Audio Performance, the UEI parent company included a number of other subsidiaries, most of them in the electronics field. Each subsidiary had its own management, and each president reported to Jim Burke.

8. At the top of the UEI organization was the Board of Directors. Peter knew there would be a major review of his performance at year-end. He knew both Jim Burke and the Board were expecting a lot from him, and he was determined not to let them down.

Answer the questions about the story.

1. What is Peter’s present job?

2. Who offered him the job?

3. What was included in the offer?

4. How long did it take Peter to decide to accept it?

5. Had Peter enjoyed his work at ESI?

6. How many people work for Audio Performance?

7. Where are AP’s factories located?

8. Where are the company's headquarters?

9. How old a company is Audio Performance?

10. What did it produce in the beginning?

11. How did its line change?

12. Why is the cost of foreign labor a problem for AP?

13. To whom do the UEI subsidiary presidents report?

14. To whom does Peter Crawford report?

15. When would Crawford’s performance be reviewed?