EBK MANAGEMENT
EBK MANAGEMENT
12th Edition
ISBN: 8220100546563
Author: DAFT
Publisher: YUZU
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Chapter 16, Problem 3ED
Summary Introduction

Case Summary:

Puget Building Materials will be paying all the sales representatives despite of their unclear financial future.

Characters in the case:

Federico Garcia, Michael, CFO James Wilson

Adequate Information:

Puget will have to face future financial repercussions as a result of paying the hefty bonuses at a financially difficult time.

To determine:

We are to strongly encourage Fredrico to pay the bonuses, as it will keep all the sales reps motivated.

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You have recently been promoted to the position of president of the division from your current role as VP of accounting and finance. Many people thought that the VP of sales and marketing would get the position, but you and he had always been friendly, and you thought that things would go smoothly. After about six months in the new position, you notice that he has been fighting you in small and subtle ways. You recognize his value, so you decide to let things play out and even mention other possibilities for promotion within the organization that he could apply for and that you would be supportive. After 11 months, things have not improved, and you are considering letting your colleague go. You are hesitant, however, because your organization needs a strong sales and marketing department. What should you do? If this power struggle continues, how do you think it will affect the larger organization?
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