Question

Second, you will play the role of sales manager Liz Smith. Before meeting with the entire team, determine which set of budget numbers you are going to present to Lonnie Draper. Write a memo supporting your decision. Give this memo to the division manager (requirement #3) before the team meeting.

Answer 1

-->> The role of manager liz smith

Group 2 must decide whether to present the most likely sales estimates or build slack (lower sales) into the budget because of uncertainty in maintaining past growth in sales. The bonus incentive system may prompt Group 2 to present the more conservative sales estimates in the Alternative B budget. If the group decides to present the Alternative A budget, its memo should express concern that the budget may be too optimistic in light of increased difficulty winning new customers. If the group decides to present the Alternative B budget, its memo should recognize that there is greater likelihood that the Sales Department will be able to generate somewhat higher sales.

# Requirement # 3 :-The role of division manager Lonnie Draper

Group 1 may submit Development Department budget Alternative A or Alternative B, and Group 2 may submit Sales Department budget Alternative A or Alternative B, so Draper may receive any one of the four possible combinations. As shown on the wireless division’s budgets, below, prepared for the four possible combinations, division profit is highest if both departments submit their Alternative A budget.