Westport Electric Company

CASE TWO: Westport Electric Corporation Case Context In a meeting, James King, the supervisor of administrative lag budget naval division of Westport Electric Company, a large manufacturer and seller of voltaic and electronic products, was discussing his displeasure with the proposed increase in budget of the offices. tally to him, these are not justified and are clear indications of faults in the companys budgeting system. The company trustworthyly has six staff offices like those mentioned and they are tasked with providing advice to top management and operating divisions as well as other staff offices. They also interrelated among the divisions depending on their areas of activity. These staff offices are budgeted using the companys budget approval procedure, which according to some of its officers like King, take a lot of improvement.  PROBLEM STATEMENT The budgeting system of Westport should be assessed as to its efficiency and effectiveness and identify changes that will develop the current system.  ANALYSIS AND RECOMMENDATION Among other things, the group recommends that top management actually pay considerable attention to the efficiency and effectiveness of separately business division.

Currently, it appears that focus is given simply on back tooth line numbers racket; that is, each units monetary success is assessed solely on the basis of how handsome the remuneration brought in for the company, without being given much performance rating as is needed in any organization. Being distinguishable profit centers, both revenues and costs must be reason for each business segment. It is important to note that while the single(a) divisions may report the most exorbitant of profit figures, the numbers do not carry with them as much meat as when these are put into context. As in the deterrent example of Westport Electric for instance, Kelly is quick to point out that the company is accepted to do better trimming down budgets handed to real divisions.... If you want to get a full essay, order it on our website: Ordercustompaper.com

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