Codman & Shurtleff

The purpose of this paper is to describe the budget process, variances and the major reasons of the variance to make all the financial decisions of the firm properly. This paper would also be helpful to explain that “make” or “Buy” decisions also play a significant role to improve the efficiency of the firm. In addition, the paper would also be useful to clarify that non-financial performance measure may be unsafe for the image of the firm.

Established an internal design division reducing “time to market” for new products; cross-functional integration required for successful development of new products [Grant p 135].

In the recommendation portion of this case analysis, I will be suggesting that the best way for J&J to become more centralized yet not completely decentralized would be to rely on clusters of companies rather than on continuously spinning off and making more and more decentralized autonomous sub-companies. My "cluster" approach would bunch together companies that are similar in nature, working on similar goals, performing similar functions and have similar customer bases.

In fact, improving the financial performances and conditions of the business will aid in modeling, planning, and control. Even though financial problems can occur, planning and observing the budget will allow us to adjust and fix any issues that may arise along the way.

Another key point is owners plan long term goals rather than short term. Investors like to see short term goals for a progress report but the owner wants to see the end target. Owners understand the importance of establishing a business plan that promotes growth and stability. In other words owners for owners to execute the plan they need to reward employees for their hard work.

Accordingly, “major new-product development activity was replaced by incremental product line extensions” (p.56) that resulted in a major revenue stall. The premature core abandonment cause is illustrated with the Kmart example. While the company was investing in a range of unrelated businesses searching for growth, Wal-Mart developed effective distribution and inventory systems. Kmart’s management failed to monitor and match these systems and fell far behind its rival. Hitachi’s example illustrates the talent bench shortfall. One of the leading causes of the stall was the company had executive management that lacked capabilities.

The next lever, the management control process, consists of four sections. The first of these is programming, which must come from strategy and be monitored to remain consistent with the firm’s objectives. The second process is budgeting, which need to fit with strategy formulation and programming. The last two of the four sections is measuring and reporting. These two sections focus on the “need for activities that measure and report both financial and nonfinancial information” . The measuring and reporting of a firm’s management control can be related to budget information and the motivation process. What a firm spends to drive motivation, and the amount of motivation that comes from it, can create contrasting cultures that needs information to why that is the result. Since this lever can be manipulated quickly, it is one that managers should focus on.

Owners make their decisions concerning business operations by looking at business performance on financial statements and comparing actual statements with the ones predicted. If the budget prediction is presented to investors, then they might use similar patter in decision making as business owners. Underestimation of sales will lead to sales

According to Soriano, the companies had developed their budgeting and long-range planning system several year earlier but, despite the many advantages these gave them, they still were not satisfied with their ability to respond to the rapid changes in the environment around them. They, therefor, search for a process that would enable them to upgrade their planning capability.

Coloplast, an international company which specializes in developing, manufacturing, and marketing medical devices, implemented an off-shoring strategy in order to be different, stay competitive and meet the dynamic market needs. In implementing this strategy, Coloplast had several issues and the first was the organizational structure. Due to changes in the organizational structure of its Danish and Hungarian production plants, misunderstandings arose between employees which resulted in serious of organizational and managerial challenges. However, the management resolved these differences through

During the transitions, Quasar was faced with many risks that need to be addressed to keep the company profitable. By performing a risk analysis we can determine if the course of action that the company pursued was correct. For example, when the company made the choice to introduce a variant into the market to remain competitive, the risk that the company took was tremendous. The money invested in research and development of a new product may not bring the expected result. If they had a far less superior product than the competitors or if the brand was improperly promoted, the outcome could have been disastrous. But by observing that they could use a twelve million of their unused production capacity they could lower the

An effective business strategy and budgeting is very essential in a manufacturing industry. A company without a proper business strategy and master budgeting plan would usually faces tremendous challenges and losses during its business operations. The importance of company’s business strategies and budgeting plans, as well as the challenges and losses in the absence of these items has clearly presented in this case study. (“Wiley,” 2013)

The original stage gate process was developed in 1980s by Robert G. Cooper based on in-deep investigation of some successful businesses, as they were able to launch successful products into the market (Cooper, 2014). The purpose of stage-Gate process is to improve the speed and quality of execution of the development activities for new products that enable project teams to have the correct information, with the right level of details, at the right gate to help making the best decision, and to allocate capital and operating resources (Stage-Gate, 2015). The aim of this article is to investigate how the stage gate process functions, analyse its strengths and weaknesses, explain the main activities involved and finally make comparison among different product development models in order to find out if this technique can be improved or replaced.

Currently the companies, Delux Machine Tools, Safe Buy Insurance Co., and MicroAge Software are all operating more or less separately, but all under the management of I.M. Tycoon. The assumption is that in order for the three entities to properly function under this corporate umbrella, they must be restructured in such a way to allow for efficient and effective operation. At the end of the day, an organizational structure will determine how the various roles, with their powers and responsibilities, are delegated, controlled, and coordinated, as well as how information flows between the levels in the structure. I.M. Tycoon’s primary goal is to make sure that the companies of his siblings stay financially fit for at

The original stage gate process was development in 1980s by Robert G. Cooper based on in-deep investigation of some successful businesses, as they were able to launch successful products into the market (Cooper, 2014). The purpose of stage-Gate process is to improve the speed and quality of execution of the development activities for new product that enable project teams to have the correct information, with the right level of detail, at the right gate to help making the best decision, and allocate capital and operating resources (Stage-Gate, 2015). The aim of this article is to investigate how the stage gate process function, analyse its strengths and weaknesses, explain the main activities involved and finally make comparison among