Zenith Case Essay

1127 Words Feb 22nd, 2011 5 Pages
In the Zenith Computer Terminals (A) case, they are trying to figure out how to increase a net profit of $450,000 to $1 million within the next year. Rob Zwettler has recently been promoted to the assistant manager of President of Zenith Computer Terminals. His job is to work on different levels of the organizations.
Rob met up with each department (sales, production, marketing and administration) in the organization to learn more about what was happening in the departments. With what he has learned about each department, Zwettler has to make recommendations to the president of Zenith Computer Terminals Juan Mendez on how the organization can achieve the net profit of $1 million.

1. Develop a new budget based on how the ideal
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Increased to $14 million and budgeted expenses increases to the projected levels?

SALES $14,000,000

Less Expenses: Sales $1,800,000 Production 6,850,000 Marketing 1,500,000 Administration 450,000 Service + 400,000 -11,000,000 $ 3,000,000

3. Determine the four most important objectives for each department. Be specific by detailing what should be done and the time frame for reaching the objection.
A. Sales Department: Major objective: with a budget of $1,800,000 to increase sales volume to $12,000,000 next year. Four Objectives:
1. Increase sales 10% by spending 96% of training days in field.
2. Hire 4 new sales reps by the end of January.
3. Sell 1,000 units of new terminal during fourth quarter.
4. Complete training of new reps by the end of March. Use sales reps to coach rep for 3 of the required 4 week training and personally handle the first month of classroom training.
B. Production Department: Major objective: Increase production to 12,000,000 units for next year within budget of $6,850,000.
1. Install new production line (2 production lines) and have it running by the beginning of April.
2. Hire 10 new production worker by the middle of March
3. Train new production workers

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