Vershire Company Case Study Ppt Templates


Once the divisional general managers had submitted these preliminary reports, the central market researchstaff at corporate headquarters began to develop a more formal market assessment, examining theforthcoming budget year in detail and the following two years in more general terms. A sales forecast wasthen prepared for each division; and these forecasts were combined to create a forecast for the entirecompany.In developing division forecasts, the research staff considered several topics, including general economicconditions and their impact on customers, and market share for different products by geographic area.Fundamental assumptions were made as to price, new products, changes in particular accounts, new plants, inventory carryovers, forward buying, packaging trends, industry growth trends, weather conditions, and alternative packaging. Each product line, regardless of sixe, was reviewed in the samemanner.These forecasts were prepared at the head office in order to ensure that basic consumptions were uniformand that overall corporate sales forecasts were both reasonable and achievable. The completed forecastswere forwarded to their respective divisions for review, criticism, and fine-tuning.The divisional general managers then compiled their own sales forecasts from the bottom up, asking eachdistrict sales manager to estimate sales for the coming budget year. The district managers could requesthelp from the head office or the divisional staff but in the end assumed full responsibility for the forecaststhey submitted.All district sales forecasts were consolidated at the division level for review by the vice president for marketing, but no changes were made in a district’s forecast unless the district manager agreed. Likewise,once the budget had been approved, any changes had to be approved by all those responsible for that budget.This process was then repeated at the corporate level. When all the responsible parties were satisfied withthe sales budget, the figures became fixed objectives, with each district being held responsible for its own portion. The entire review and approval process had four objectives:1.To assess each division’s competitive position and formulate courses of action to improve upon it.2.To evaluate actions taken to increase market share or to respond to competitors’ activities.3.To consider undertaking capital expenditures or plant alterations to improve existing products or introduce new products.4.To develop plans to improve cost efficiency, product quality, delivery methods, and service.

Manufacturing Budget

After final approval at the divisional and corporate levels, the overall sales budget was translated into asales budget for each plant, broken down according to the plants from which the finished goods would beshipped. At the plant level, the sales budget was then categorized according to price, volume, and use.Once the sales numbers were estimated, each plant budgeted gross profit, fixed expenses and pretaxincome. Profit was calculated as the sales budget less budgeted variable costs (including direct material,direct labour, and variable manufacturing overhead-each valued at a standard rate) and the fixed overhead budget.

The plant manager was held responsible for this budgeted profit number even if actual sales fell below the projected level.

Cost standards and cost reduction targets were developed by the plant’s industrial engineering department,which also determined budget performance standards for each department, operation, and cost center within the plant-including such items as budgeted cost reductions, allowances for unfavorable variancesfrom standards, and fixed costs such as maintenance labor.


Стратмор отпустил створки двери, и тонюсенькая полоска света исчезла. Сьюзан смотрела, как фигура Стратмора растворяется во тьме шифровалки. ГЛАВА 63 Новообретенная «веспа» Дэвида Беккера преодолевала последние метры до Aeropuerto de Sevilla.

Костяшки его пальцев, всю дорогу судорожно сжимавших руль, побелели. Часы показывали два часа с минутами по местному времени.

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