Scribd
Upload
69 views

Grand Jean

A plant manager has suggested that the plants be operated as profit centers. In your ES, discuss why treating the plants as profit centers could result in better management. If the plants are treated as profit centers, discuss how marketing should be treated.

Uploaded by

Rajesh Saha
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
69 views

Grand Jean

A plant manager has suggested that the plants be operated as profit centers. In your ES, discuss why treating the plants as profit centers could result in better management. If the plants are treated as profit centers, discuss how marketing should be treated.

Uploaded by

Rajesh Saha
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 1

EXECUTIVE SUMMARY QUESTIONS 4-6: Grand Jean Company

Grand Jean owns 25 plants that it operates as engineered expense centers. One plant manager has suggested that the plants be operated as profit centers because only the best managed plants survive in this business. (See Question 3 at the end of the case.) Because you are working on your MBA, the president of Grand Jean asks you to prepare an Executive Summary (ES) in which you evaluate the proposal to treat the plants as profit centers. In your ES: 1. Discuss why treating the plants as profit centers could result in the plants being better managed; 2. Discuss what you regard as the strongest arguments for keeping the plants as engineered expense centers; 3. Discuss how you feel Mr. Wicks responsibilities will change if the plants are treated as profit centers; and 4. Marketing is currently treated as a revenue center. If the plants are treated as profit centers, discuss how marketing should be treated (i.e., revenue center, profit center, expense center, etc.) and why; and [NOTE: Regardless of how the plants are treated, assume that what each plant produces and the plant quotas (how much) will still be set centrally, i.e., each plant will not be allowed to produce whatever they want.]

Grand Jean Company


Outside Supplier

Headquarters

Factory 1 Factory 3

Factory 2 Factory 4 Factory 25

Outside Supplier Outside Supplier Outside Supplier Outside Supplier

..

Marketing

Customers

You might also like