Johnson and associates was formed in 1989 which comprised of four members.

The companys products

were health and racquet clubs, independent insurance agents and wholesale produce distribution
companies. Michael Johnson took the initiative and established the firm and later on his sibling James
joined in because of his technical abilities. Furthermore, two more people were added in the
management, Steven Jackson who had an exposure in the industry sector and hence could contribute in
the insurance product of the company. Whilst, Fred Wilson had been working as a programmer and his
technical skills were an asset to the company.
The first issue which Johnson associates faced was that the input cost which they determined was too
much. Since, the growth of computer market is thriving and growing rapidly by approximately 19
percent annually; likewise expenditures are also pushing up from 17 percent to 20 percent