Monthly Fee perActual NumberAdvertising Revenues$ 415,972Month/Yearof SubscribersSubscriber$15.50June 201529,74555,223December 2015867,246892,13420.50June 201659,64120.50December 20161,517,9502,976,53887,674147,92120.50June 201720.50The following decisions were made from June through October 2017:a. June 2017: Raised subscription fee to $25.50 per month from July 2017 onward. The budgeted numberof subscribers for this monthly fee is shown in the following table.b. June 2017: Informed existing subscribers that from July onward, monthly fee would be $25.50.c. July 2017: Offered e-mail service to subscribers and upgraded other online services.d. October 2017: Dismissed the vice president of marketing after significant slowdown in subscribersand subscription revenues, based on July through September 2017 data in the following table.e. October 2017: Reduced subscription fee to $22.50 per month from November 2017 onward.Results for July-September 2017 are as follows:Budgeted Numberof SubscribersMonthly Fee perActual NumberMonth/YearJuly 2017August 2017September 2017of SubscribersSubscriber145,000155,000165,000129,250142,726145,643$25.5025.5025.501. Classify each of the decisions (a-e) as a planning or a control decision.2. Give two examples of other planning decisions and two examples of other control decisions that maybe made at PostNews.com.

Question
Asked Feb 11, 2020
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PostNews.com offers its subscribers several
services, such as an annotated TV guide and local-area information on weather, restaurants, and movie
theaters. Its main revenue sources are fees for banner advertisements and fees from subscribers. Recent
data are as pictures

 

Monthly Fee per
Actual Number
Advertising Revenues
$ 415,972
Month/Year
of Subscribers
Subscriber
$15.50
June 2015
29,745
55,223
December 2015
867,246
892,134
20.50
June 2016
59,641
20.50
December 2016
1,517,950
2,976,538
87,674
147,921
20.50
June 2017
20.50
The following decisions were made from June through October 2017:
a. June 2017: Raised subscription fee to $25.50 per month from July 2017 onward. The budgeted number
of subscribers for this monthly fee is shown in the following table.
b. June 2017: Informed existing subscribers that from July onward, monthly fee would be $25.50.
c. July 2017: Offered e-mail service to subscribers and upgraded other online services.
d. October 2017: Dismissed the vice president of marketing after significant slowdown in subscribers
and subscription revenues, based on July through September 2017 data in the following table.
e. October 2017: Reduced subscription fee to $22.50 per month from November 2017 onward.
Results for July-September 2017 are as follows:
Budgeted Number
of Subscribers
Monthly Fee per
Actual Number
Month/Year
July 2017
August 2017
September 2017
of Subscribers
Subscriber
145,000
155,000
165,000
129,250
142,726
145,643
$25.50
25.50
25.50
1. Classify each of the decisions (a-e) as a planning or a control decision.
2. Give two examples of other planning decisions and two examples of other control decisions that may
be made at PostNews.com.
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Monthly Fee per Actual Number Advertising Revenues $ 415,972 Month/Year of Subscribers Subscriber $15.50 June 2015 29,745 55,223 December 2015 867,246 892,134 20.50 June 2016 59,641 20.50 December 2016 1,517,950 2,976,538 87,674 147,921 20.50 June 2017 20.50 The following decisions were made from June through October 2017: a. June 2017: Raised subscription fee to $25.50 per month from July 2017 onward. The budgeted number of subscribers for this monthly fee is shown in the following table. b. June 2017: Informed existing subscribers that from July onward, monthly fee would be $25.50. c. July 2017: Offered e-mail service to subscribers and upgraded other online services. d. October 2017: Dismissed the vice president of marketing after significant slowdown in subscribers and subscription revenues, based on July through September 2017 data in the following table. e. October 2017: Reduced subscription fee to $22.50 per month from November 2017 onward. Results for July-September 2017 are as follows: Budgeted Number of Subscribers Monthly Fee per Actual Number Month/Year July 2017 August 2017 September 2017 of Subscribers Subscriber 145,000 155,000 165,000 129,250 142,726 145,643 $25.50 25.50 25.50 1. Classify each of the decisions (a-e) as a planning or a control decision. 2. Give two examples of other planning decisions and two examples of other control decisions that may be made at PostNews.com.

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Expert Answer

Step 1: Definition

Planning and Control Decision:

Planning decisions involves selecting organization goals, estimating results under different alternative ways to attain those goals, and deciding how to achieve the expected goals. It involves communicating the goals and how to attain them to the entire firm.

Control decisions involve taking actions to implement planning decisions, and deciding on how to evaluate performance and providing feedback and learning to improve future decision making.

Step 2: Classify each of the decision as planning or control decision

a) In June 2017, the firm raised its subscription fees to $25.5 per month from July 2017 onward. In such case, the firm has decided to increase its revenue by increasing the subscription fee, so that its goal could be attained. The goal of the firm is to increase its revenue and hence, the above decision comes under the planning process because it defines the way such that the goal could be achieved.

b) In June 2017, the firm informed the existing subscribers about the decision to raise the subscription fees to $25.5 per month from July 2017 onward. In such case, the firm has decided to communicate its goals to its members. Hence, the above decision to inform the existing members is a part of the planning process.

c) In July 2017, the firm has offered e-mail services to subscribers and also upgraded other online services. In such case, the firm has decided to implement the planning decision. The offering and upgrading of service mean implementing the decision taken at the planning stage because many factors h...

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