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6. NEED OF ONGOING MANAGEMENT CYCLE( Case Study ) Sidney Greenburg was appointed the position of the director of marketing for a small electronics component manufacturer. The company had its revenues growing at the rate of 20% each year and in 1982, they were at 30 million level The president felt that the growth of the company required serious planning efforts to determining strategies product emphasis and new product development. Mr. Greenburg realising the need to develop the marketing plan developed a suggested format to obtain inputs from his regional sales managers. The format to obtain divided into two parts (a) territory brief for established status of sales activities and (b) territory plan asked for identification of key goals, strategy & resources required to accomplish stated goals. Sales forecast by products was requested for 3 plan Yrs. Tom Rosenfield was the marketing manager for Europe He was previously in the engineering department & was assigned to Europe because of his technical& Foreign language capabilities. He replied to Mr.Greenburg as follows: “While I will complete the forms on the country brief& country plan promptly I have some conceptual problems with them time& time again we have been requested for projected figures I remember putting together a presentation for the Executive Vice-President (VP) & Treasurer last year. Great we educated those guys but what are the results of such formality? The projections have not yielded specific results, resources are used at a minimal level & we are not generating needed sales. So it is my contention that while goals projections& forecasts provide immeasurable guidance for a company with stable sales & developed product lines, for us a fledglings (young) industry, they distract from the job at hand. My plan has always been to hit the market- as hard I am able & I believe this should hold true for all other regional managers. We have large amounts of resources held up in ineffective’ marketing planning efforts such as these need to redirect these efforts to self rather than compile data. We need more people beating the pavement (action) rater than sitting on their desks developing plans& strategies (contemplation) Sell, sell, sell. Get the backing as big as possible. Planning is wasteful. Let us concentrate on aggressive sales & optimize sales volume at any cost. A. What has Mr.Greenburg not done to accomplish his planning tasks? B. Is Mr.Rosenfield right in making his comments in response to Mr. Greenburg’s request? C. Is Mr. Rosenfleld performing his management function. D. What would you do if you were Mr.Rosenfleld’s boss?
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Raj & Raj Ltd purchased a machinery on 01.01.1996 for Rs.88,000.The life of the machine estimated to be 5 Yrs.It was calculated that the old machinery would fetch Rs.8000 at the end of its useful life.it was decided to replace the machinery at the end of the 5th year by setting up depreciation fund and invest the annual depreciation (along with interest earned each year) in gilt edged securities carrying interest at 5% p.a. At the end of the 5th Year the securities were sold for Rs.9000.As per the sinking fund table Rs.14,478 is to be invested every year.A new machine was purchased on 01.01.2001 for Rs.1,00,000.pass the journal entries and show the ledger accounts
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