Iris Window Fashions USA: A Case Study in Failed Managerial Oversight and Control

This descriptive case study reflects a real-world company and situation in which one of the authors was personally involved. The name of the organization and those of the principals involved have been disguised, and the organization is no longer in business. Iris Window Fashions USA was a new division of the parent company, Iris Windows, Ltd. A hard window treatment manufacturer headquartered in Guangzhou, China, which manufactured and distributed blinds, vertical roll-ups, and a variety of shade products to outlets in Asia, Europe, and North and South America. Iris Window Fashions USA was a late entry into an already mature North American market but was gaining increased sales and market share. After five years, the firm had over 10 million dollars in sales, which included sales to its largest retailer, Wal-mart, but found itself in a series of scandals that rocked the firm and its management team to the core. The original president, Bill D’Orio, was fired by the Chairman of the Board, Rex Chin, and his replacement, Steve Bauer, became embroiled in a major fraud and theft of monies and products from the firm and was also fired. The turmoil at Iris necessitated a radical change in management and company operations. Providing managerial oversight and implementing control over a firm’s operations at a distance often proves difficult; Rex Chin’s Iris USA division proved that difficulty.