I have an assignment due at 12 tonight which is reply based on a set of given questions made to analyze a Harvard law case. Questions and instructions are the following. 

Global Leadership Roles and Strategy

This topic provides an opportunity to start developing an appreciation for the role of the general manager. In particular, we will emphasize the unique characteristics and challenges faced by general managers, as well as the variety of roles that they typically play. In doing so we will come to understand how such positions differ from those of functional managers, and the responsibilities and rewards associated with general management positions. We will also come to recognize the interdependence of a broad array of strategic, operating, and administrative issues that general managers face.

Our first case will be used as a vehicle to discuss the issues referred to above, and will also highlight many of the concepts and issues we plan to focus on this semester. Robyn Gilcrist, who received her MBA several years earlier, agrees to become the CEO of a small boat manufacturer. The original plan is for the owner/founder to stay with the business for a year, and for Robyn to have the benefit of his presence. However, when the founder dies unexpectedly, Robyn, agrees to move into the CEO position earlier than planned. Our goal is to use the situation Robyn finds herself in to start developing and understanding of the general manager’s job. In doing this, we will focus on how Robyn should spend her time.

Case: Yellowtail Marine Preparation Questions:

1. How should Robyn spend her first three days on the job? (Prepare a calendar for the morning, afternoon, and evening of each of those days).
2. Which issue should Robyn prioritize for attention in the next month? Why?
3. What goals should Robyn set for the next year? For the next five (5) years?

Harvard Business School 9-376-23

5

Rev. January 17, 198

9

Assistant Professor Kenneth J. Hatten prepared this case as a basis for class discussion rather than to illustrate either effective or
ineffective handling of an administrative situation.

Copyright © 1976 by the President and Fellows of Harvard College. To order copies or request permission to
reproduce materials, call 1-800-545-7685, write Harvard Business School Publishing, Boston, MA 02163, or go to
http://www.hbsp.harvard.edu. No part of this publication may be reproduced, stored in a retrieval system, used in a
spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or
otherwise—without the permission of Harvard Business School.

1

Yellowtail Marine, Inc.

I wouldn’t offer you a job like this unless I thought you had the ability to run the
company and the guts to buy me out within seven years. You know how I’ve always made
my money: turning rundown companies around by providing an opportunity to a talented
manager who’s wasting away inside some over-organized large corporation. Robyn,
you’ve been with Sportscraft for almost four years and you’re years away from a top
management job. This is a chance to do your own thing and end up with your own
business—come aboard, eh?

How the Situation Developed

It was March 25, 1976, and Charles Boswell, an alumnus of the same California business school
attended by Robyn Gilcrist, was trying to convince her to take a job as chief operating executive of
Yellowtail Marine, a company Boswell had just bought. Boswell was president of CBG, Inc., a privately
held venture capital firm which he had founded in 1964. Boswell’s fortune was based on his ownership of
the West Coast distributorship of a major earthmoving equipment company, and he had prospered—first
on highway construction and land boom in Southern California and more recently from his involvement
with Alaskan oil development. He maintained, however, that the challenge in his life was new ventures
and turnarounds.

Boswell first met Gilcrist in 1967 when, as president of the American Water Skiing Association, he
presented her with the national championship. As they became acquainted, Boswell learned that Gilcrist
had graduated in the top 5% of her MBA class. During the next three years, as she continued to win
national events, he had kept in touch with her and over the past few years he had followed her career at
Sportscraft. She had started in the marine division in promotions and marketing where she had increased
total sales by 70% in just two years. Her next assignment was as marketing director of the Winter Sports
Division. (Boswell wondered whether Sportscraft knew the difference between sea and ski.) More recently
she had been assistant to the president of Sportscraft, and when Boswell had spoken with her in San
Francisco, she had mentioned that she felt at a dead end and needed a more challenging position.

For the exclusive use of L. Dawkins, 2020.

This document is authorized for use only by Lucita Dawkins in Management 4720-RDV and RDF – Spring 2020 taught by CURBA LAMPERT, Florida International University from Jan 2020 to
Jul 2020.

376-235 Yellowtail Marine, Inc.

2

Boswell offered her a job that would leave her as president of Yellowtail by May 1977. Boswell had
acquired Yellowtail from Olaf Gunerson, who was something of a legend in San Diego. His inboard and
outboard boats with their distinctive yellow stems could always be seen there zipping about the harbor or
bobbing up and down at their moorings looking as if they were raring to go.

As was his practice, Boswell had negotiated a deal which left the owner in place for 12 months
while he took control of the board. As always, he intended to bring a new professional manager in to work
with the retiring owner and he had thought of Gilcrist for this opportunity. She had extensive marketing
experience in the water sports industry, and Boswell felt that Yellowtail would respond quickly if the
company was more market oriented.

Thinking back on it, Gilcrist realized that what had swung the deal was Boswell’s willingness to
allow her to buy into the business: $65,000 salary plus several generous fringe benefits and the rights to
acquire up to 20% of the business over the next 7 years, followed by the chance to increase her ownership
to a controlling interest in 10 years if things worked out. It seemed too good to be true.

Boswell had shown her Yellowtail’s 1975 financial statements (see Exhibits 1 and 2) and told her
that the company needed work. He said that sales had slipped from just over $10 million in 1973 to about
$8.4 million in 1975. The oil crisis and the 1974 recession had cut deeply into the boat industry’s sales.
Although Gunerson was active, at age 73 he was not up to turning the company around himself and he
wanted to retire. Boswell said he had already talked Gunerson into hiring a new advertising agency to beef
up the company’s sales in the summer of 1976. Happily, when Gilcrist accepted Boswell’s offer, Gunerson
and his wife had invited her to their home for a weekend and had held a dinner for her at the Green
Dolphin Club, where Olaf introduced her to most of Yellowtail’s managers as his new executive vice
president and heir apparent.

Gilcrist had agreed to start work with Yellowtail on May 4, but on April 12, 1976, she received a
call from Boswell telling her that Gunerson had died of a heart attack. He had been out in his favorite
Yellowtail Corsair, a high-speed game fishing boat, when he had collapsed. Boswell wondered whether
she could start earlier. After a call to Sportscraft’s president, she agreed to start on April 14.

Boswell thanked her and said that he would appreciate it if she could get to the plant, deal with
whatever needed doing, fly to San Francisco for a board meeting that same afternoon, and then return with
him and his wife to Olaf’s funeral on April 15. Boswell mentioned that after the funeral he would be flying
to the Middle East for about 10 days. He said that if she could manage it he would like to see some kind of
preliminary strategic plan for Yellowtail before he left. That way she could have about 14 days to work on
it and develop a budget for the board’s approval.

Yellowtail Marine

Yellowtail Marine was founded in 1926 by Olaf Gunerson when he acquired the White Bay
Boatyard. Gunerson, who had been trained as a naval architect, initially offered a two-model line—a cabin
cruiser and a game fishing boat. His choices were fortunate; first, because he met with almost instant
success; second, because his boats appealed to the small segment of the West Coast population who had
money to spend through the 1930s; and finally, because a special version of his game fishing boat was used
by police departments, the IRS and customs agents, and the military.

When the United States entered the war in 1941, Yellowtail Marine was one of the firms selected to
produce offshore patrol boats, naval launches, and a few other small craft. Because of its strategic task,
Yellowtail Marine was able to maintain its place as a small boat builder and the company’s products
became widely known since many servicemen had used Yellowtails by the war’s end.

For the exclusive use of L. Dawkins, 2020.
This document is authorized for use only by Lucita Dawkins in Management 4720-RDV and RDF – Spring 2020 taught by CURBA LAMPERT, Florida International University from Jan 2020 to
Jul 2020.

Yellowtail Marine, Inc. 376-235

3

During the 1950s Gunerson sought materials that would allow some measure of automation in the
boat-building industry. He was one of the first to use fiberglass in pleasure craft and a pioneer in
extensively using foam to improve flotation, a characteristic of Yellowtail’s that became an important
selling point.

In 1975 the company was predominantly serving the West Coast and the Rocky Mountain regions
and offered a wide range of fiberglass and wooden craft from 14’ to 40’ long. The smaller boats (up to 26’)
were primarily outboard boats retailing at $100 to $275 per foot, which placed them in the medium- to
high-priced segments of the market as Exhibit 3 indicates. About 64% of the company’s boats were
outboards; another 35% were inboard/outboard boats selling for about $8,500; and the rest were
customized or special order craft between 26’ and 40’ long selling for between $800 and $1,400 per foot.
These boats were primarily game fishing boats, the Corsair, or an adaptation of the Corsair design for
police or military use. Gunerson had deliberately fought to preserve a niche in these last two markets
because he felt they had brought the company through the Great Depression and World War II. In 1975 he
stated that the game and police boats were the only products that had increased sales since 1973.
Yellowtail sold about 1,600 boats and employed 235 people in 1975.

Yellowtail was simply organized on a functional basis by Gunerson after World War II. The major
functional areas in April 1976 were as follows: boatyard, the production center, under the leadership of
Robert McPhail, age 57, who had been with the company for 23 years; financial control and personnel,
Mark Lopez, a CPA, 59 years old, who had 15 years with Yellowtail; and marketing under Paul Lees, who
had been with the firm four years and was 36 years old. He had been the sales manager of one of
Yellowtail’s dealers before he joined the company.

The Pleasure-Boat Industry

The pleasure-boat industry served almost one-quarter of the U.S. population in the mid-1970s

.1

This group included the yacht owners, insulated from the effects of the economic cycle and who cheerfully
paid $150,000 to $300,000 and more for cabin cruisers and racing yachts; the $40,000-a-year middle-income
families who aspired to the same fare but felt the pinch of hard times; and those with less who enjoyed
boating but probably felt the pinch most of the time.

The industry was large with 1975 sales estimated at $4.8 billion, encompassing new and used
equipment, services, insurance, mooring and launching fees, repairs, and boat club memberships. Across
the country, Boating Industry claimed, almost 50 million people participated in recreational boating more
than once or twice during 1975: 12 million people went water skiing, 34 million went fishing, 4 million
went skin and scuba diving, and almost 10 million pleasure craft of all types and sizes plied U.S. waters.
Retail sales increased from about $2.6 million in 1964 to almost $4.8 billion in 1975,2 with 16,000 boating
dealers and 6,000 marinas, boatyards, and yacht clubs serving the needs of boating families.

Although the industry’s dollar sales increased, 1974 and 1975 were marred by an across-the-board
turndown in units sold. Inflation was a major factor in the industry’s dollar growth as builders and
manufacturers passed on their costs in an effort to maintain profit levels. Fortunately for the industry, used
boat sales were brisk and used boat prices benefited from the increased cost of new equipment. A Business
Week article stated:

1 Frost and Sullivan, Inc., The Pleasure Boat and Boat Equipment Market (New York, New York, June 1974) is a useful
reference on this industry.
2 Boating Industry, January 1976.

For the exclusive use of L. Dawkins, 2020.
This document is authorized for use only by Lucita Dawkins in Management 4720-RDV and RDF – Spring 2020 taught by CURBA LAMPERT, Florida International University from Jan 2020 to
Jul 2020.

376-235 Yellowtail Marine, Inc.

4

The continued high sales value of used boats, dealers agree, has loosened bankers’
attitudes towards boat financing. “The collateral,” one dealer notes, “is good.” So
apparently are the repayment habits of weekend sailors. Says a boat financing specialist
for Seattle’s Washington Mutual Savings Bank, which now advertises 10 1/2% loans to
boat buyers, “We have never had a repossessed boat and have hardly ever had a
delinquency.”3

The pleasure boat industry was historically a craft industry, regionally based because of the high
cost of transporting boats overland, and cyclical in nature. At least until the mid-1970s it had been an easy
business to enter because of its traditional labor-intensive nature

.4

The industry was changing, however, partly because of the development of new material—
aluminum and fiberglass—which lent themselves to semiautomated and automated production processes
and partly because of the investments of larger, well-capitalized corporations in the industry.5 In the late
1960s and early 1970s a number of well-known boat firms were acquired by or merged with larger
companies. Table A shows the extent to which the industry changed; only 5 of the 20 largest firms
remained independent.

Table A Nonindependent Boat Manufacturers in the Top 40 Sellers

Manufacturer Parent Company

Chrysler Marine Chrysler Corporation

Duo Boats
Jensen Marine
The Luhrs Company
O’Day Boat Company
Starcraft Company

Bangor Punta

Alcort
Crestliner
Hatteras
Slickcraft

AMF

Boston Whaler, Inc.
Ericson Yacht

CML

Columbia/Corando
Trojan Yachts

Whittaker

The merger and acquisition activity was prompted by the industry’s steady growth through the
1960s and early 1970s, but the oil crisis in 1973 and the recession of 1974 and 1975 led to a shakeout. Table
B shows how some raw materials prices changed over the period. Large and small firms were all affected,
but it seemed likely that many small firms would not survive. It was estimated that outboard boat sales fell
by almost 40% between 1973 and 1975. Boat trailer sales fell by about 25% in the same period and outboard
motor sales fell by almost 20%.

It was expected that the industry would begin to grow again in 1976 (see Exhibit 4). It might grow
in a different direction, however, since the energy crisis gave impetus to sailing over power boating. In

3 Business Week, July 28, 1975, p. 17.
4 In 1973–1974 it was estimated that there were about 1,600 U.S. boat builders and manufacturers: 82% had less than
20 employees and more than 900 had between 1 and 4 employees. Chemical Market Reporter, July 20, 1974.
5 Some large corporations, such as Chris Craft, set up regionally based plants around and across the country.

For the exclusive use of L. Dawkins, 2020.
This document is authorized for use only by Lucita Dawkins in Management 4720-RDV and RDF – Spring 2020 taught by CURBA LAMPERT, Florida International University from Jan 2020 to
Jul 2020.

Yellowtail Marine, Inc. 376-235
5

1975 only sailboats6 and boats costing more than $45,000 gained in sales. This led some experts to predict
that the sailing segment of the boating industry would grow at a rate between 15% and 20% through the
remainder of the 1970s. They saw much of this growth coming in the low-priced end of the market,
however, which was dominated by Snark with its foam sailers.

Other changes affecting the sailboat market included the following points:

If you’re a sailor, you can listen open-mouthed to some of the cruise adventures young
couples have these days: bubbling breathlessly and laughingly about getting underway
while the “blue blazers” gape; stopping in the most improbable places for. . . . To a
traditional cruiser it all sounds a bit superficial and over-romanticized.

But if you’re a sailing dealer and you expect to reach the new, young buying
couples—the folks with money in their jeans and willingness to spend it on the outdoor
life, the “freedom” sports—you better try to dig it.

Table B Prices of Chemicals, December 1972–1975 (per pound)

Chemicals per Pound

1972 1973 1974 1975

Styrene, monomer .066–.067 .09–.095 .19 1/4–.22 .

19

Polyester resin, unsaturated — .181/2 –.20 .39 lb. .3

6

Source: Chemical Marketing Reporter, December issues, 1972–1975.

Dealers seemed to be recognizing a nontraditional, nonnautical market of nonexpert but affluent
sailors who were more interested in comfort, wall-to-wall stereo, and gourmet galleys than in sailing
performance. These people were not interested in the organized life of the yacht club, but wanted hassle-
free cruising. One type of sailboat that seemed to appeal to this market was the trailer sailer.

Trailer sailers were normally 20’ to 26’ long and allowed almost continental mobility, something
few other livable boats offered. They cut maintenance costs considerably because the boat could be kept
out of the water when not in use, and as Table C suggests, day-to-day maintenance costs could be
substantial. Sales of trailerable boats slipped during the energy crisis, but were expected to pick up in the
last half of the 1970s.

Table C Rental Charges for Summer Berthing at Surveyed Establishments, 1973 ($ per season)

Flat Charge Charge per Foot

Type of Berthing Range Average Range Average

Moorings 5–300 129 2–8 4.6

7

Breasted on Docks 100–500 253 6–30 15.60
Slips 75–920 273 8–30 13.03
Tie-Offs 90–400 297 5–10 7.50
Dry-Stack 300–325 313 12–15 12.75

Source: David A. Storey. The Massachusetts Manna Boatyard Industry 1972–1973, October 1974/Bulletin #612. Massachusetts Agricultural Experimental
Station. College of Food and Natural Resources, University of Massachusetts at Amherst.

Note: Typical season = 6 months.

6 The four most popular product classes had about equal dollar sales. Foam sailers sold for between $100 and $150;
multiple hulls generally sold in the $1,000 to $3,000 range; sailboats ranged from $1,400 to $7,500 or more; and day
sailers ran up to $5,000 or $6,000. Shipped value in 1975 was about $44 million.

For the exclusive use of L. Dawkins, 2020.
This document is authorized for use only by Lucita Dawkins in Management 4720-RDV and RDF – Spring 2020 taught by CURBA LAMPERT, Florida International University from Jan 2020 to
Jul 2020.

376-235 Yellowtail Marine, Inc.
6

The power boat segment of the industry was expected to resume growth at its historical rate or,
perhaps, a little better. What the experts were more confident of was their prediction that among the
surviving companies would be those more adequately capitalized firms which had the ability to widen
their distribution systems and sustain volume production. This suggested that the power-boat segment of
the industry would be split into two quite different businesses. Boats larger than 26’ would be at least
partially handbuilt and virtually customized. Boats below 26’ would be semiautomatically or
automatically produced.

In the under 26’ segment, manufacturers would have to continue to fight for uniqueness because
new designs could be easily imitated. It might be that, like the auto industry, annual model changes would
be more widely adopted—as a defensive as well as an aggressive strategy.

Males were thought to dominate most boat purchase decisions, certainly in the traditional markets.
Surveys suggested that the typical male boat user was afloat at least twice the time of the typical female
boat user. (The outboard market is described in Exhibits 5 and 6.) The sailing market seemed to be
different if the profile of the typical reader of Yachting and similar magazines was coincident with the
profile of the typical sailboat buyer: mostly college educated and in the growing 25–44 age bracket. There
was a substantial readership, however, in the 55–65 age bracket. Most readers were interested in sailing as
a recreational activity, and consistent with this theme, it was reported that most boat sales were made on
weekends between 10 A.M. and 3 P.M.

Aside from sales and manufacturing problems, the boating industry had other problems. Its
executives often felt beset by governmental regulations. The Boat Safety Act of 1971 required boat
manufacturers to keep records of their compliance efforts. EPA and OSHA had an effect. Motor boat noise
levels were being reduced under government pressure. The Clean Water legislation affected boat
sanitation systems. And, the chemicals used in boat manufacturing were found harmful to workers.

Among the problems facing the industry in 1976 was a shortage of marinas and service centers. To
be successful, a marina had to be located in a heavily populated area. In these areas real estate values were
high, especially when beach frontage was involved. One response was the dry-land marina, but many
owners had to have waterside service. Brand turnover was rising as dealers and OEMs (original
equipment manufacturers) jockeyed for relative bargaining power and return on investment. As the
industry entered its major selling season in 1976, dealers were conservative about the industry’s sales
prospects and OEM orders were slow. In boat sales, dealer conservatism could have been due to the
problems of trade-ins. In 1975 about 46% of all new boat sales involved a trade-in. (Table D details the
types of service provided by a number of Massachusetts marinas.)

Table D Repair Activities at Surveyed

Establishments

Establishments

Type of Repair Activities Number Percent

Wooden Boats 81 69%

Fiberglass Boats 79 67

Inboard Engines 81 69

Outboard Engines 62 53

Source: David A. Storey. The Massachusetts Marina Boatyard Industry 1972–1973, October 1974/Bulletin #612. Massachusetts
Agriculture Experimental Station. College of Food and Natural Resources, University of Massachusetts at Amherst.

For the exclusive use of L. Dawkins, 2020.
This document is authorized for use only by Lucita Dawkins in Management 4720-RDV and RDF – Spring 2020 taught by CURBA LAMPERT, Florida International University from Jan 2020 to
Jul 2020.

Yellowtail Marine, Inc. 376-235
7

Walking in as President

When Gilcrist got to Yellowtail’s boatyard, where the company’s offices were located, she realized
that it was already 8:15 A.M. and her plane to San Francisco left at 11:30 A.M. She had only two hours or
perhaps a little more before she would have to leave. Gilcrist was eager to confirm Boswell’s high opinion
of her. She had to deal with what Gunerson had left, whatever had come up since, and the tasks Boswell
had given her.

Because she was acting under a time constraint, Gilcrist decided to be specific and write the letters
she needed to write, to make notes to herself and others as necessary. She liked to plan every action and
clarify its purpose: What was to be done, by whom, and when? There might be other factors that seemed
important; if so, she would be specific with respect to them. Gilcrist even decided to write out the
substance of any phone calls she made and to plan her movements if she had to leave San Diego. She
entered Gunerson’s office, picked up his in-basket, and took it into the office Gunerson had set up for her.
She felt it would be better to leave his office free until his personal effects had been returned to his wife.
Then she went to work on the in-basket items.

For the exclusive use of L. Dawkins, 2020.
This document is authorized for use only by Lucita Dawkins in Management 4720-RDV and RDF – Spring 2020 taught by CURBA LAMPERT, Florida International University from Jan 2020 to
Jul 2020.

Item 1 In-Basket Exercise

376-235 Yellowtail Marine, Inc.

8

For the exclusive use of L. Dawkins, 2020.
This document is authorized for use only by Lucita Dawkins in Management 4720-RDV and RDF – Spring 2020 taught by CURBA LAMPERT, Florida International University from Jan 2020 to
Jul 2020.

Item 2 Boat Show Calendar

Yellowtail Marine, Inc. 376-235
9
For the exclusive use of L. Dawkins, 2020.
This document is authorized for use only by Lucita Dawkins in Management 4720-RDV and RDF – Spring 2020 taught by CURBA LAMPERT, Florida International University from Jan 2020 to
Jul 2020.

Item 2 (continued)

376-235 Yellowtail Marine, Inc.

10

Item 3

For the exclusive use of L. Dawkins, 2020.
This document is authorized for use only by Lucita Dawkins in Management 4720-RDV and RDF – Spring 2020 taught by CURBA LAMPERT, Florida International University from Jan 2020 to
Jul 2020.

Item 4

Yellowtail Marine, Inc. 376-235

11

For the exclusive use of L. Dawkins, 2020.
This document is authorized for use only by Lucita Dawkins in Management 4720-RDV and RDF – Spring 2020 taught by CURBA LAMPERT, Florida International University from Jan 2020 to
Jul 2020.

Item 5

376-235 Yellowtail Marine, Inc.

12

For the exclusive use of L. Dawkins, 2020.
This document is authorized for use only by Lucita Dawkins in Management 4720-RDV and RDF – Spring 2020 taught by CURBA LAMPERT, Florida International University from Jan 2020 to
Jul 2020.

Item 6

Yellowtail Marine, Inc. 376-235

13

For the exclusive use of L. Dawkins, 2020.
This document is authorized for use only by Lucita Dawkins in Management 4720-RDV and RDF – Spring 2020 taught by CURBA LAMPERT, Florida International University from Jan 2020 to
Jul 2020.

Item 7

376-235 Yellowtail Marine, Inc.

14

For the exclusive use of L. Dawkins, 2020.
This document is authorized for use only by Lucita Dawkins in Management 4720-RDV and RDF – Spring 2020 taught by CURBA LAMPERT, Florida International University from Jan 2020 to
Jul 2020.

Yellowtail Marine, Inc. 376-235

15

Item 8 Registered Craft Totals by Hull Material, 1965–1971

Wood Steel Aluminum Fiberglass

As of
December 31 Inboard Outboard Inboar

d
Outboard Inboard Outboard Inboard Outboard

1965 350,087 1,530,054 13,861 124,203 9,119 891,651 51,923 943,5

23

1966 326,388 1,389,627 13,286 118,127 9,420 957,591 68,566 980,865

1967 331,484 1,361,657 14,770 97,232 14,956 1,159,504 129,012 1,132,360

1968 331,452 1,278,079 16,061 105,164 27,551 1,297,822 168,152 1,284,437

1969 322,181 1,180,910 16,624 100,755 29,654 1,373,626 201,511 1,398,797

1970 318,194 1,140,156 15,654 104,085 27,385 1,492,069 239,386 1,531,956

1971 319,927 1,070,753 16,387 103,449 33,010 1,681,222 303,588 1,704,331

Source: U.S. Coast Guard report, Boating Statistics, CG-359, May 1972.

Item 9 Registered Craft Totals by Hull Material and Length, 1971

Wood Steel Aluminum Fiberglass

Length Inboard Outboard Inboard Outboard Inboard Outboard Inboard Outboard

Under 16´ 23,617 729,846 2,395 49,569 11,639 1,415,321 27,008 1,108,3

25

16´ less
than 26´ 175,328 333,954 4,614 45,164 18,194 260,513 248,064 591,014

26´ less
than 40´ 109,485 6,485 6,986 7,696 2,817 5,178 25,723 4,655

40´–65´ 11,070 422 2,222 970 347 179 2,758 277

Over 65´ 427 46 170 50 13 31 35 60

Total 319,927 1,070,753 16,387 109,449 33,010 1,681,222 303,588 1,704,33
1

Source: U.S. Coast Guard report, Boating Statistics, CG-359, May 1972.
For the exclusive use of L. Dawkins, 2020.
This document is authorized for use only by Lucita Dawkins in Management 4720-RDV and RDF – Spring 2020 taught by CURBA LAMPERT, Florida International University from Jan 2020 to
Jul 2020.

376-235 Yellowtail Marine, Inc.

16

Item 10 Distribution of 5,510,092 Numbered Boats by State (in percentages)

1.8

1

.6

.9

.3

8.7

.9
.9

.5

.3
.4
.6

.2

5.5

.2

.5
1.9 2.1

2.2

.4
.4

1.0 1.8

1.0

1.5

2.1
1.0

5.7

.3
1.3

1.9

1.4

7.8

4.1

.2

1.6

2.6

1.7

8.8

6.2

3.4

1.5

2.02.4.6

4.3

2.2
.1

Alaska
Hawaii
District of Columbia
Guam
Puerto Rico
Virgin Islands

.3
.2

.1
.006

.1
.1
.1
Source: U.S. Coast Guard report, Boating Statistics, CG-359, May 1972.
For the exclusive use of L. Dawkins, 2020.
This document is authorized for use only by Lucita Dawkins in Management 4720-RDV and RDF – Spring 2020 taught by CURBA LAMPERT, Florida International University from Jan 2020 to
Jul 2020.

Yellowtail Marine, Inc. 376-235

17

Item 11 Leading Metropolitan Markets for Outboard Motors, 1973–1975

Estimated Unit Sales

Central City 1973 1974 1975
Estimated Motors
Owned—12/31/75

Minneapolis-St.
Paul, MN 16,000 14,300 11,200 211,000

Nassau-Suffolk, NY 13,800 11,000 9,500 169,000

Chicago, IL 12,800 11,200 9,300 167,000

Houston, TX 8,500 6,700 8,100 110,000

Detroit, MI 10,400 8,000 7,800 145,000

Milwaukee, WI 9,800 8,100 6,700 128,000

Dallas-Ft. Worth, TX 8,200 8,100 6,400 119,000

Tampa-St.
Petersburg, FL 6,800 8,200 5,600 96,000

Seattle-Everett, WA 5,900 5,400 5,300 83,000

Baltimore, MD 4,900 3,500 4,500 70,000

New Orleans, LA 5,400 5,100 4,400 80,000

Miami, FL 4,600 5,400 4,300 83,000

New York, NY 5,700 4,700 4,100 90,000

Philadelphia, PA 4,900 4,700 4,100 67,000

Boston, MA 5,400 5,600 3,900 86,000

Los Angeles-Long
Beach, CA 5,500 4,600 3,700 86,000

Jacksonville, FL 3,200 4,300 3,700 46,000

Washington, D.C. 4,500 3,700 3,600 50,000

St. Louis, MO 5,100 4,100 3,500 71,000

San Francisco-
Oakland, CA 3,000 2,800 3,200 59,000

Baton Rouge, LA 4,100 3,000 2,800 43,000

Kansas City, MO 3,700 2,800 2,700 49,000

Tulsa, OK 2,500 2,400 2,600 36,000

Atlanta, GA 3,500 2,900 2,500 44,000

Indianapolis, IN 3,200 2,200 2,500 39,000

Buffalo, NY 3,200 2,700 2,500 40,000

Memphis, TN 3,900 3,100 2,500 47,000

Phoenix, AZ 2,200 2,400 2,400 32,000

Shreveport, LA 2,800 3,000 2,400 38,000

Charleston, SC 2,300 2,100 2,400 31,000

Orlando, FL 2,700 4,000 2,200 45,000

Duluth-Superior, MN 3,200 2,700 2,200 42,000

Denver-Boulder, CO — 1,700 2,100 27,000

Pittsburgh, PA 1,900 2,700 2,100 32,000

Norfolk-Va. Bch –
Portsmouth, VA 2,600 2,600 2,100 30,000

Ft. Lauderdale –
Hollywood, FL 2,500 3,000 2,000 44,000

Ft. Meyers, FL 2,100 3,000 2,000 26,000

Cleveland, OH 2,700 2,700 2,000 39,000

Oklahoma City, OK — 1,700 2,000 31,000

Portland, OR 3,000 2,700 2,000 45,000

Sacramento, CA 2,700 2,100 1,900 28,000

West Palm Bch. –
Boca Raton, FL 2,100 2,500 1,900 29,000

Source: Data obtained from the Marketing Department of Marex, the National Association of Engine and Boat Manufacturers,
and Boating Industry, January 1976.

For the exclusive use of L. Dawkins, 2020.
This document is authorized for use only by Lucita Dawkins in Management 4720-RDV and RDF – Spring 2020 taught by CURBA LAMPERT, Florida International University from Jan 2020 to
Jul 2020.

376-235 Yellowtail Marine, Inc.

18

Item 12 State Distribution of Outboard Motors, 1973–1975

Estimated Unit Sales

State 1973 1974 1975
Estimated Motors
Owned—12/31/75

Alabama 13,200 15,000 7,100 161,000

Arizona 4,700 3,500 3,500 50,000

Arkansas 10,900 11,200 7,300 133,000

California 22,400 20,400 19,000 385,000

Colorado 2,700 2,700 3,100 41,000

Connecticut 7,100 5,100 4,800 84,000

Delaware 1,900 1,600 1,500 25,000

Dist. of Columbia 600 300 500 7,000

Florida 44,000 51,500 36,100 590,000

Georgia 15,000 9,900 9,100 154,000

Idaho 2,700 2,900 1,600 46,000

Illinois 23,400 21,100 16,800 289,000

Indiana 17,000 12,400 12,100 200,000

Iowa 9,500 9,300 7,500 116,000

Kansas 5,800 3,800 3,300 74,000

Kentucky 7,800 7,400 6,000 102,000

Louisiana 25,600 24,000 19,100 308,000

Maine 7,100 7,400 4,100 89,000

Maryland 9,400 8,100 7,900 129,000

Massachusetts 11,200 11,800 8,300 165,000

Michigan 34,600 28,400 23,100 516,000

Minnesota 35,000 33,500 24,500 408,000

Mississippi 5,900 8,200 4,800 75,000

Missouri 14,600 11,600 9,400 183,000

Montana 1,600 1,500 1,000 21,000

Nebraska 3,000 3,400 3,000 42,000

Nevada 900 900 900 18,000

New Hampshire 2,900 2,400 2,000 38,000

New Jersey 11,100 11,600 9,900 166,000

New Mexico 2,800 2,000 1,600 24,000

New York 34,900 16,200 9,400 150,000

North Carolina 14,800 27,600 24,400 4

78,000

North Dakota 1,500 3,200 2,200 28,000

Ohio 19,200 18,700 14,700 274,000

Oklahoma 9,100 6,800 7,900 128,000

Oregon 6,500 5,100 4,400 114,000

Pennsylvania 12,600 14,300 12,700 186,000

Rhode Island 2,100 1,400 1,700 26,000

South Carolina 9,600 10,600 8,500 142,000

South Dakota 2,900 1,900 1,800 22,000

Tennessee 17,200 12,200 9,200 179,000

Texas 38,100 36,700 30,000 490,000

Utah 2,000 1,600 2,100 31,000

Vermont 900 600 700 24,000

Virginia 10,800 10,100 8,800 135,000

Washington 13,200 13,400 11,900 173,000

West Virginia 1,600 1,600 1,400 28,000

Wisconsin 33,200 29,100 24,100 392,000

Wyoming 400 1,000 200 10,000

Total 585,000 545,000 435,000 7,649,000

Source: Data obtained from the Marketing Department of Marex, the National Association of Engine and Boat Manufacturers, and
Boating Industry, January 1976.

For the exclusive use of L. Dawkins, 2020.
This document is authorized for use only by Lucita Dawkins in Management 4720-RDV and RDF – Spring 2020 taught by CURBA LAMPERT, Florida International University from Jan 2020 to
Jul 2020.

Item 13

Item 14

Yellowtail Marine, Inc. 376-235
19

8:37 A.M. Ms. Clarke knocks and brings a letter into office saying as she comes in that Mr. Arch
Towne of OSHA and two men are in foyer. Mr. Towne wants representative of management and
shop Steward to tour plant with him and he asked for the President.

For the exclusive use of L. Dawkins, 2020.
This document is authorized for use only by Lucita Dawkins in Management 4720-RDV and RDF – Spring 2020 taught by CURBA LAMPERT, Florida International University from Jan 2020 to
Jul 2020.

Item 15

376-235 Yellowtail Marine, Inc.

20

For the exclusive use of L. Dawkins, 2020.
This document is authorized for use only by Lucita Dawkins in Management 4720-RDV and RDF – Spring 2020 taught by CURBA LAMPERT, Florida International University from Jan 2020 to
Jul 2020.

Item 16

Yellowtail Marine, Inc. 376-235

21

For the exclusive use of L. Dawkins, 2020.
This document is authorized for use only by Lucita Dawkins in Management 4720-RDV and RDF – Spring 2020 taught by CURBA LAMPERT, Florida International University from Jan 2020 to
Jul 2020.

376-235 Yellowtail Marine, Inc.

22

Exhibit 1 Yellowtail Marine, Inc. Balance Sheet, July 31, 1975

Assets

Current assets
Cash
Accounts receivable
Inventory
Other

$8,000
842,000

1,251,000
22,000

Current assets $2,123,000

Fixed assets
Plant and equipment
Less accumulated depreciation

2,511,000
989,000

Net fixed assets 1,522,000

Other assets at cost
Less amortization

152,000
22,000

Other assets net 130,000

Total assets $3,775,000

Liabilities and Stockholders’ Equity

Current liabilities
Accounts payable
Short-term note
Accrued liabilities
(salaries, rents, property taxes, etc.)
Current portion long-term debt

$665,000
212,000

78,000

39,000

Current liabilities $ 994,000

Long-term obligations
Bank of San Diego
Mortgages
C.B.G. Inc. (10 yr. subordinate loan)

52,000
399,000

1,200,000

Long-term liabilities 1,651,000

Stockholders’ equity
Common stock (no par value)
Retained earnings

782,000
$348,000

Stockholders’ equity 1,130,000

Total liabilities and
stockholders’ equity $3,775,000

For the exclusive use of L. Dawkins, 2020.
This document is authorized for use only by Lucita Dawkins in Management 4720-RDV and RDF – Spring 2020 taught by CURBA LAMPERT, Florida International University from Jan 2020 to
Jul 2020.

Yellowtail Marine, Inc. 376-235
23

Exhibit 2 Yellowtail Marine, Inc. Income Statement, August 1, 1974 to July 31, 1975

Revenue
Gross sales
Less: discounts, returns and
allowances

$8,376,000

36,000

Net sales 8,340,000

Cost of goods sold 6,662,000

Gross profit 1,678,000

Operating expenses
Selling and advertising
General and administrative
Miscellaneous

$710,000
528,000

21,000

Total operating expenses 1,259,000

Operating income 419,000

Financial payments
Bank interest
Mortgage interest
Lease payment
Interest on C.B.G. loan

8,000
32,000

9,000
$114,000

Total financial payments 163,000

Income before tax 256,000

Taxes paid 88,000

Profit after tax $168,000

Exhibit 3 Sales of New Outboard Boats, Motors, and Inboard/Outboard Boats, 1972–1975

1972 1973 1974 1975

Outboard Boat
Units sold
Average price per unit
Total dollars spent ($ millions)

375,000
$714.00

$267.8

448,000
$726.00

$325.2

425,000
$730.00

$310.2

328,000
$801.00

$262.7

Inboard/Outdrive Boat
Units sold
Average price per unit
Total dollars spent ($ millions)

63,000
$4,885
$307.8

78,000
$5,261
$410.4

70,000
$5,5

24

$386.7

70,000
$6,000
$420.0

Outboard Motor
Units sold
Average price per unit
Total dollars spent ($ millions)

535,000
$808.00

$432.3

585,000
$857.00

$501.3

545,000
$850.00

$463.3

435,000
$945.00

$411.1

Source: Boating Industry, January 1976.

For the exclusive use of L. Dawkins, 2020.
This document is authorized for use only by Lucita Dawkins in Management 4720-RDV and RDF – Spring 2020 taught by CURBA LAMPERT, Florida International University from Jan 2020 to
Jul 2020.

376-235 Yellowtail Marine, Inc.
24

Exhibit 4 Expected Boating Industry Investment and Sales, 1965–1976 ($ millions)

Manufacture

Plant
Expansion

New Machinery
and Equipment

Marine Dealer
Inventory (avg. daily)

Renovation and
Repair

(older boats)

1976a $19.40 $18.70 $241.00 $246.00
1975 16.90 16.90 204.55 210.00
1974 15.00 15.30 223.84 202.40
1973 14.10 14.40 193.23 190.60
1972 17.10 17.20 180.74 169.47
1971 8.20 9.45 156.90 158.00
1970 8.61 10.11 150.30 147.39
1969 10.30 12.98 160.30 141.06
1968 8.53 9.47 145.39 132.31
1967 8.14 9.24 142.53 127.68
1966 7.40 8.90 139.60 124.47
1965 8.13 8.74 135.70 120.38

Source: Peter B. B. Andrews, “What’s Going To Happen In ‘76”; Boating Industry, January 1976, p. 54.
a 1976 data estimated.

Exhibit 5 Why Customers Buy Outboard Boats and Motors, 1970–1975

Buyers
Mentioning (in %) 1970 1971 1972 1973 1974 1975

Outboard Motors
Cruising 36.5% 32.6% 32.1% 31.1% 32.7% 40.0%
Fishing 55.4 47.0 36.1 36.4 33.0 42.3
Hunting 32.0 30.2 30.0 28.8 31.4 26.1
Skiing 54.1 50.4 49.2 49.3 47.7 40.2
All Other 7.0 7.0 6.8 6.8 7.6 11.6

Outboard Boats
Cruising 41.4 37.2 36.9 40.5 37.9 38.8
Fishing 53.1 44.0 39.7 42.2 35.5 40.6
Hunting 37.7 35.8 29.9 36.9 32.9 25.9
Skiing 45.7 48.5 48.5 44.6 50.5 33.3
All Other 6.1 6.5 5.9 5.9 6.7 9.9

Source: Boating Industry. January 1976.

Note: Percentages add to more than 100% because of multiple responses.

For the exclusive use of L. Dawkins, 2020.
This document is authorized for use only by Lucita Dawkins in Management 4720-RDV and RDF – Spring 2020 taught by CURBA LAMPERT, Florida International University from Jan 2020 to
Jul 2020.

Yellowtail Marine, Inc. 376-235
25

Exhibit 6 Top Markets for Outboard Boats and Motors, 1970–1975

Outboard Boats Outboard Motors

Occupation
of Purchaser (in %) 1970 1971 1972 1973 1974 1975 1970 1971 1972 1973 1974 1975

Skilled worker 24. 2% 21.6% 21.6% 21.8% 22.2% 22.4% 24.5% 22.6% 24.3% 22.4% 22.3% 22.6%
Clerical workers,

salespeople 17.9 20.3 21.4 15.8 14.0 15.8 17.2 19.4 19.7 15.4 13.4 15.6
Managers, proprietors 15.9 13.7 11.3 15.4 19.3 19.8 14.3 12.9 11.8 14.5 19.3 19.1
Professional 17.0 18.1 15.9 24.7 20.5 16.7 17.6 18.8 18.2 25.7 22.3 18.5
Semiskilled workers 12.9 11.1 13.9 7.3 10.3 12.6 13.9 14.6 13.3 6.7 10.1 12.2
Farmers, farm

laborers 2.4 2.4 2.2 2.2 2.6 3.1 2.6 2.6 2.5 2.4 2.8 2.9
Protective, service

workers 7.9 7.8 7.4 9.2 9.0 8.7 7.9 7.1 7.3 9.1 8.5 8.1
Factory laborers 1.8 2.0 3.3 3.6 1.6 0.9 2.0 2.0 2.9 3.8 1.3 1.0
Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

Source: Boating Industry, January 1976.
For the exclusive use of L. Dawkins, 2020.
This document is authorized for use only by Lucita Dawkins in Management 4720-RDV and RDF – Spring 2020 taught by CURBA LAMPERT, Florida International University from Jan 2020 to
Jul 2020.

GlobalLeadership Roles and Strategy

This topic provides an opportunity to start developing an appreciation for the role of the general
manager. In particular, we will emphasize the unique characteristics and challenges faced by general
managers, as well as the variety of roles that they typically play. In doing so we will come to understand
how such positions differ from those of functional managers, and the responsibilities and rewards
associated with general management positions. We will also come to recognize the interdependence of a
broad array of strategic, operating, and administrative issues that general managers face.

Our first case will be used as a vehicle to discuss the issues referred to above, and will also
highlight many of the concepts and issues we plan to focus on this semester. Robyn Gilcrist, who
received her MBA several years earlier, agrees to become the CEO of a small boat manufacturer. The
original plan is for the owner/founder to stay with the business for a year, and for Robyn to have the
benefit of his presence. However, when the founder dies unexpectedly, Robyn, agrees to move into the
CEO position earlier than planned. Our goal is to use the situation Robyn finds herself in to start
developing and understanding of the general manager’s job. In doing this, we will focus on how Robyn
should spend her time.

Case: Yellowtail Marine

Preparation Questions:

1. How should Robyn spend her first three days on the job? (Prepare a calendar for the
morning, afternoon, and evening of each of those days).

2. Which issue should Robyn prioritize for attention in the next month? Why?

3. What goals should Robyn set for the next year? For the next five (5) years?