Wayne Huizenga Graduate School
of Business & Entrepreneurship
Assignment for Course: MGT 5012 – Twenty First Century Management Practices
Submitted to:Dr. Rhonda Polak
Submitted by:Amy Bukovich
Date of Submission:November 9, 2012
Title of Assignment:The Well Paid Receptionist Case Analysis
CERTIFICATION OF AUTHORSHIP: I certify that I am the author of this paper and that any assistance I received in its preparation is fully acknowledge and disclosed in the paper. I have also cited any sources from which I used data, ideas of words, whether quoted directly or paraphrased. I also certify that this paper was prepared by me specifically for this course.
Student Signature: Amy Bukovich
Instructor’s Grade on Assignment:
A Practical Application of
Market-Based and Value Driven Management for Tyco International
Nova Southeastern University
Based upon the principles of economics, every firm’s goal main goal is to create long-term sustainable profitability. In order to attain this goal a firm must understand Value Over Time (VOT) maximization and the relationship both short and long-term goals have in profit maximization. In reviewing the Well Paid Receptionist Case Analysis it is evident that Troupville Business Solutions (TBS) misjudged the time horizon when making critical decisions that would affect their future financial obligations. TBS: Background and Problem Identification
Troupville Business Solutions was founded seven years ago by Harvey Finley, an experienced service technician and well networked sales associate for copy machines. At the time Harvey decided to capitalize on his technical competence and sales experience, Troupville was recovering from a severe recession. To many in the small town of 35,000 the business venture was risky but Harvey believed with his comparative advantages in the industry, paired with a competent staff, he could realize his dream. In the beginning, Harvey had a shoestring budget which barely gave him the financial means to higher an employee needed to play both the role of secretary and general assistant. Harvey was looking for someone that not only the held technical skills required to fulfill daily tasks but someone that was just as passionate and in-tune to the vision he had for his company. He found this in Cathy Brannen, an educated administration assistant with seven years experience with two separate companies who both vowed that she was the best employee they have had in any position. Because of Cathy’s exceptional attributes as an employee she earned herself a salary of $15,900, which was higher than both the average salary for the area and Harvey’s budget at $14,000. Harvey was reluctant to guarantee a large salary because of the uncertainty regarding the future of the firm, so to entice Cathy to commit he decided to offer a 2% sales over-ride contingency to her contract that at the time created no substantial financial obligation. In the short-term it provided Harvey with the assets needed to create an opportunity for success; his ideal employee with an incentive based contract that freed up cash for current operations. After seven years and an evolving business plan Harvey had experienced success, unforeseen even to himself. He contributes some of his current success to Cathy, as he recognized she had proven to be a truly indispensable asset. Cathy grew with the company, becoming just as knowledgeable as Harvey in all facets of the company while maintaining her official position as secretary. With the growth Harvey expanded his staff to include 17 employees, including Frank, the company comptroller. Having an increased number of professional salespersons decreased the level of support Cathy was providing to customers and allowed her more time to spend on her expanding secretarial...