FINAL EXAM

You have over 10 years experience as a business senior manager for several industries.
You are a recruiters dream because any company would love to hire you while they make their
huge recruiting bonuses. You have worked in manufacturing, public accounting, banking, and
private corporations of which you have positively contributed in the past. You are very
intelligent, witty, and well educated. You get along with your bosses and your staff. Senior
executives and staff ask your advice on business operations, accounting and finance issues, HR
issues and even personal issues. You are a very well rounded and seasoned senior manager.
You are now the new Senior Operations Director for a privately held manufacturing
company. Your major responsibility is the oversight of the whole companys operations. You
were hired to do some changes to the companys operations and how it operates, increase
revenues, decrease spending, implement policies and procedures, etc. You report to the
President/Owner of the company. The company has been in the business for over 40 years,
family owned corporation and several hundred employees. The managers are either family,
extended family, or friends of the family and may I add, a closely-knit family.
AREAS OF CONCERN:
1) Purchasing and Inventory Control is headed by the Presidents oldest son. He is the
overall manager for the 10 divisions. Purchasing is done by every 10 divisions of the
company. Each division has their own purchasing officer. Also, sales manager can make
inventory purchases on his/her own. Quarterly inventory has been done differently by
each division. All invoices for purchases are received by each division then forwarded to
the main accounting department. Late and double payments to vendors are frequent
occurrence. This has been the process since day one and it seems everybody is ok with it.
During yearly physical inventory several inventories are scrapped for obsolescence.
2) Collections Department is headed by the Presidents daughter in-law. Several customers
are over 90 days late in payments. All 10 divisions are not collecting enough money on
time. Each division has their own way of collecting money. Each division has several
hundred customers over 90 days.
3) Two divisions are not making money at all. However, the company pays lease, minimal
staffing, taxes, and inventory to keep these facilities. The President/Owner does not
believe it should be closed because he thinks the business will pick up on those places
very soon.

REQUIRED:
1)
2)
3)
4)

Identify the culture of this company? Identify the stakeholders.

Identify barriers, advantages, and limitations.
Using the Fishbone diagrams or Ishikawa diagram, identify causes/effects of problem:
Using the Decision Making Steps, how would you resolve these issues.
DECISION MAKING STEPS