Organizations face a number of challenges especially during decision-making if the executive cannot have a common goal. The company is experiencing some management issues regarding setting up of an outlet for its clothes. The main challenges are uncertainty, globalization dilemma, innovation, and diversification.

The Harrington Collection Company faces a problem of uncertainty especially on what competitors are doing to control a big share of the market. Technology is also an issue as the company management is uncertain of the emerging trends in the fashion wear for women leading to their short-term focus on their production. The company management wants something that will bring it results within a short time and fails to plan for informed long-term strategies. One of the directors, Karen, fears that the company may not make enough sales to break-even in the first year.

Globalization challenges are common in many organizations especially issues involving foreign cultures in order to penetrate new markets and compete with the existing markets. New customers will always require the company to manufacture new products and services that suit their culture. Information gathering on the new markets is vital especially matters concerning government policies on foreign investors. The company management fears setting up stores in countries such as china because of the risks associated with globalization. The costs of renting stores, paying for labor, legal and other costs may eat into the profits of the company. A lot of research is required to ensure that the company succeeds in establishing new markets in foreign countries.

Harrington Collection is facing a challenge of diversification of its products to serve the new markets. Diversification poses a challenge of disagreement of the management team as they argue over whether to engage in a certain business or not. Lack of diversity in organizations and their leadership teams makes it difficult to take risks in new ventures or creating new products. Harrington Collections faces a challenge of diversifying its products to include other types of women wear such as stylish, casual, and sporty wear. Some of the directors feel that it is not advisable to expand their lines downstream making it difficult for the company to compete for the market with the others.

Recommendations

Harrington Collection needs to adapt to the changing trend in technology and innovation to serve the modern markets as people have moved from official wear to stylish designs. The company also needs to diversify its products to include men and children wear to capture a large market and compete with similar companies. The other thing the company can do is to globalize its production by venturing in other countries and continent including Africa and establish their ventures. The company also needs to address the challenge of uncertainty among its management team to enable them take the risk of establishing new outlet and makin a variety of clothes to suit the emerin markets.