scroll to top
Stuck on your essay?
Get ideas from this essay and see how your work stacks up
Word Count: 2,614
Objectives 1 To illustrate the importance of the assumptions embedded in a profit plan 2 To familiarise students with various sources of business information 3 To learn how to use a profit plan to test key business decisions Case Synopsis The case portrays a series of profit planning decisions in a family-owned publishing company The case is written by and about the same individual Ramsey Walker a young recent business school graduate The case begins with a quick overview of Walker Companys Walker history Case Theory and Background Companies use profit plans for several reasons To translate the strategy of the business into a detailed plan to create value This helps managers quantify trade-offs and provides a framework for analysis for a variety of strategic decisions To evaluate whether sufficient resources are available to implement the intended strategy This highlights the importance of the cash flow for small companies To create a foundation to link economic goals with leading indicators of strategy implementation To enable benchmarking with competitors and identify areas for efficiency gains To aid in internal communication coordination and education An interactive profit planning process sets up a motivational contract with managers and increases their knowledge of the business There are three interrelated analyses that are required for profit planning a the profit wheel b the cash wheel and c return on equity ROE wheel All profit plans can change as managers assumptions about the future and understanding of cause and effect relationships change Sequence of Analysis Part A Complete a profit plan for the childrens book line What assumptions are made and identify which of these is critical to your analysis Part B Based on your analysis prepare an agenda of the top three action items that Ramsey should discuss with George Gibson and Ted Rosenfeld during their upcoming meeting Part A Complete a profit plan for the childrens book line
@Kibin is a lifesaver for my essay right now!!
- Sandra Slivka, student @ UC Berkeley
Wow, this is the best essay help I've ever received!
- Camvu Pham, student @ U of M
If I'd known about @Kibin in college, I would have gotten much more sleep
- Jen Soust, alumni @ UCLA