Solartronics Case

Topics: Strategic management, Strategic planning, Strategy Pages: 3 (836 words) Published: May 8, 2013
February 29th, 2012

Solartronics Inc.
Case 10-2
1. In light of the expected, average monthly profit of $30,000, January results were so poor because the budgeted average monthly sales should be $250,000. This is calculated by dividing the $3,000,000 in sales by 12 months. Unfortunately the actual average monthly sales turned out to be $ 165,000. Another reason that results were so poor is because they were in a normal seasonal downturn. Furthermore, during this period, fixed costs also continued to be high which meant that the total allocation of the fixed costs was not spread over a large scale. 2. Various external forces could help the company analyze the January performance. Some of these factors include: changes in the general level of economic activity and the effects that these changes have on the volume of sale. Second, any changes in the labor rates could help the company analyze the performance. Third, changes in internal policies like production costs by management could also be of some help. Determining the variances and percent changes in expenses also could be a useful analysis for January’s performance. The company should consider using a balanced scorecard as a way to align their performance with their strategic goals.

Chelala 2
Codman & Shurtleff Inc.
Case 3
1. They compete in 12 major product groups. The business is very price sensitive. Johnson & Johnson has a highly decentralized planning and control system which provides innovation within the company. The company delegates strategic planning to operate subsidiaries. Each operating subsidiary must report the plan and review the result with corporate. By controlling output rather than process, it lets the subsidiaries find different ways to achieve the corporate mission. As stated in the case, “Salary and bonus reviews are entirely subjective and qualitative and are intended to reward effort and give special...
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