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Case Study Example: External Considerations That Influence Managers

2 pages
513 words
George Washington University
Type of paper: 
Case study
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For an organization to be successful the manager has to guide and control the employees so as to achieve the goals of the institution. This is done through use of interpersonal skills.. Leadership styles affecting the role of managers include demographic data, environment, roles and characteristics of the employees, technology, cultural and political factors. In order to help the company in adapting to new changes the manager should create techniques that will enhance easier working.

The environment of the company influences the manager. These factors include cultural, political and religion. The business should be culturally acceptable among the people so as to ensure that there will be good markets of the goods being sold. This helps in the growth and enlarging the business. The manager is positively influenced by these factors.

On assessment the role played by the management during planning and evaluation of the business entails organizing, staffing, delegating or directing, controlling, budgeting and implementing. These are the key that will help in ensuring that there is proper management in the Kensington Ltd Company.

Cash budget for Kensington Ltd Company

Jan Feb March

Beginning cash balance $ 15,00 $ 0 $0

Payments to suppliers $ 2600 $ 2600 $ 2800

Expenses of direct labor $ 2000 $ 2000 $ 2000

Other expense costs $ 1220 $ 1230 $ 1230

Report analysis and potential profitability of the alternatives

For the month of January the beginning cash is 150,000 while the ending balance is zero. This is a good cash budget if everything goes as per the expectations of the company. Though its risky incase miscellaneous that were not involved in the budget occurs. In case the Kensington is not able to pay its wages it may opt for negotiate with credit line or overdraft in their bank account. This can be obtained also by securing bank loans which should be repaid by the end of the month of march after the ending price is calculated.

Alternatively it can move the February payments to march by signing an agreement of later payments with its suppliers so as to enhance proper ending cash in the month of January and February. The month of March has a good ending cash of $ 120,000 which marks an implementation of the manager in the budgeting role. This extra money can be put into appropriate use by buying new company equipments for example the new truck that will cost $ 25,000, payment of dividends to the employees and payment of the bank loans.

Calculation and list of relevant variances

As per Mr. Belle video cassette production company potential cost can be defined as the total cost of goods considering the price that they will be sold including all the total cost of fees and those that are involved in the contract. The opportunity cost will involve all the months and the prices that are listed.

Sunken cost entails the cost that has already been used or that Mr. Belle has already incurred and cannot recover them. During the decision making process these sunken costs should not be considered because they will alter future expectations of the business. The entrepreneur should ensure that there is profit obtained after the selling price has been done and the customer has received the appropriate discount.

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