Many executives have attempted to simplify the reporting procedures of fund accounting by using business practices. However, nonprofit enterprises have financial structures and objectives different from those of business. Managers of nonprofit institutions need greater familiarity with the requirements of nonprofit financial structures and accounting practices. A review of the components of fund accounting and an illustrative case help clarify the principles.
A study indicates four factors which individually and in combination greatly affect salesperson motivation: the nature of the task; the personality, particularly the strength of the salesperson's need for achievement; the type of compensation plan; and the quality of management. Why the four variables work together is unclear; they do, however, continually impact each other.
Describes the rapidly growing disposable diaper industry in 1974, a period in which Procter and Gamble's industry leadership faced strong challenges from Kimberly Clark, Johnson and Johnson, and Union Carbide. The latter two firms were in the process of entry into the industry. Focuses on the decision to enter the business, the barriers to entry, and the optimal reaction of going firms, in this case Procter and Gamble, to deter or impede entry. Software for this note is available (9-388-504).
Daniel Potter receives a boost in his young career as a CPA by being specially placed on a particularly important assignment. He and his boss, who is known both for his accounting acumen and his autocratic manner, come into direct conflict over the evaluation and reporting of one of the client's real estate properties.
Peter Green, a new salesperson for Scott Carpets, learns firsthand that his largest account has always been given a discount based on falsified information and expects the same preferred treatment to continue. Peter's boss condones the discount. Peter must decide whether to pursue the order on these conditions and how to handle his already shattered relationship with his boss.
A bank lending officer must decide whether to extend and increase a loan to a small machine tool company. Case provides sufficient data for preparation of cash budgets and pro forma financial statements in order to analyze the lending officer's problem. Other issues that can be addressed include the impact of stock repurchase, dividends, advanced payments by customers, as well as general sensitivity analysis.
Demonstrates how the capital asset pricing model can be used to estimate the impact of financial leverage on the cost of equity capital. The levering and unlevering of betas are illustrated. Also presents a methodology for decomposing the cost of equity into its three components--the risk-free rate, a premium for business, and a premium for financial risk.
A large chemical manufacturer divests a plant that is acquired by a small specialty chemicals manufacturer. The acquisition decision is viewed from the vantage point of the small specialty chemicals manufacturer.
Focuses on the decision required of Parker Brothers regarding the necessity and advisability of recalling a new product that may have been related to the death of two children.
The 12-year career of Mr. Bob Marsh is traced, from recruitment to termination. Data on Kramer's sales management, performance evaluation, compensation, and sales training systems are given.
Describes Sweco's decision about whether to enter the mud-processing equipment industry (used in oil well drilling). This is an internal entry decision, and the case describes Sweco's existing businesses as well as the mud-processing industry and competitors. The case contains enough data to calculate the costs of entry in the new industry, and to forecast the reactions of existing firms to the entry.
A study of more than 2,000 male executives and their wives over a five year period indicates certain factors which affect the ability of executives to have meaningful private lives. On-the-job frustration, self-doubt, and unfinished business cause emotional spillover into private life. This spillover manifests itself through fatigue, tension, and worrying. Major causes include the problems of adapting to a new job, the lack of an appropriate fit between a person and his job, and career disappointments.
The efforts of host governments to maintain control over their own national economies have restricted the freedom of multinational company (MNC) managers in deploying economic resources. Regulation interferes with product/market choice, use of technology, level of employment, and national trade balance. Compromise is an alternative to the choices of adaptation to or withdrawal from a national market.
Upper level managers often fail to realize the difficulties of first-level managers who may have once been among employees and now must form a new identity. Successful first-level supervisors establish a balance between informal authority and interpersonal influence, and responsibility. It is the responsibility of upper management to recognize the difficulties associated with the position and help supervisors develop a power base.
Lower middle-level manager is faced with the need to bring about a change in the call patterns of the sales force selling her product. Based on an earlier case by P.R. Lawrence.
Poland Spring is a small domestic bottler of mineral water trying to compete in a rapidly expanding market against Perrier, the dominant brand, and 20 other foreign and domestic waters. Company management must decide how to position and promote its product with limited resources. An excellent case to force decision making on consumer marketing strategy.