SOLUTION IDENTIFICATION

The relationship between the current and the desired performance is that both are aimed at reducing the financial problem faced by this organization. The current performance being applied is supplementing the shortfall from sales with funds from public investors (Vere & Kleiner, 2007). This is a far-sighted concept that is designed to prevent the firm from remaining stagnant while facing tough times. This approach is the cheapest source of finance apart from the retained earnings and the shareholders' capitals.

However, this has not been fruitful because the firm has experienced a slow and gradual growth instead of the quick and massive growth predicted. Another performance approach is that the organization has eliminated some of the health coverage despite being an employee owned business. The rationale being that most employees are just happy to have basic healthcare coverage and wouldn’t mind sacrificing some of the other perks. This strategy has however failed due to the rising competition from other companies that are able to offer more benefits with better pay. All these current performance strategies are aimed at reducing the financial challenges but are shortsighted and detrimental to the long-term success of the company.

Similarly, the desired performance of this organization is also aimed at reducing the financial problem. The desired performance is the redesigning of the financial and the leadership structure. The organization is longing to venture into various markets to gain a larger competitive advantage among its competitors. This would enable this firm to pay off the debts and increase its assets base to control a larger section of the global market. Changing of the leadership structure is desired in order to move the firm into a new business level.

The mission statement of the firm is to overcome the financial crisis by expanding the business while retaining current customers. The desired performance, redesigning the leadership and financial problem would offer the firm an opportunity of venturing into a different market and integrating the innovator to maneuver the firm into the new business level. Through this, the debt would be paid off, and the resource base of the business would increase within the global market thus providing an opportunity of overcoming the financial challenges.

The financial problem of the organization affects every person in this organization. The management, the employees, and the stakeholders are all at risk of being hit by this crisis. The resources by the shareholders are likely to go to waste if the problem is not resolved and the employees are likely to lose their jobs (Dan, 2011). The initiative of relying on the financial debts and retained earnings has been the primary cause of the financial crisis within this organization. This firm considers financial debt as being the cheapest way of financing its operations. The retained earning strategies can only fund some portion or the company's development, and it cannot last to sustain the growth of the organization. This means that the probability of the firm going back to the previous crisis is high.

The financial problem can be directly tied to the inefficient management of this organization. The training for the implementation of the desired outcome is likely to be lacking and impossible hence the reason why there is a need for new management before tackling the financial problems. The leadership structure of Woodman’s Markets is questionable at best. The leaders of this firm failed to position the organization in a state of financial freedom rather they successfully inflated growth by leveraging their borrowing potential.

Finally, the criterion used for the measurement of the performance at this firm is the return on marketing investment; this has become difficult to meet. The approach is becoming difficult to achieve because of the financial constraints. The expansion of Woodman’s Markets needs management capable of motivating employees to meet realistic goals. The financial crisis needs to be resolved through multiple investments but these investments must be sourced through assets not debts.

References Dan, C. (2011). Protestors call on Woodman's to return mental health coverage. WKOW . Vere, S. L., & Kleiner, B. H. (2007). Practices of excellent companies in the retail industry. Managing service quality, 7 (1), pp.34-38.