Flex budgets and variances at Speedy Tire Co. / Zeshawn Beg.

Format:

Book

Author/Creator:

Beg, Zeshawn, author.

Series:

SAGE business cases.

SAGE business cases

Language:

English

Subjects (All):

Service stations--Case studies.

Service stations.

Industrial management--Case studies.

Industrial management.

Break-even analysis--Case studies.

Break-even analysis.

Physical Description:

1 online resource : illustrations.

Place of Publication:

London : Institute of Management Accountants, 2020.

Summary:

Speedy Tire Co. is an auto service company that specializes in the preparation and installation of tire mounting kits. Customers drive up to a Speedy Tire Co. branch either with their own tires to install or to purchase tires from nearby third-party vendors, and Speedy Tire Co.'s trained installers prepare and install the necessary tire-mounting kits and tires within 60 minutes of the customer's arrival. Speedy Tire Co., a national company, is split up into several districts with each containing multiple branches. Speedy Tire Co.'s sales promotions and purchasing plans are coordinated at the district-level, while service operations are managed at the branch-level. While Speedy Tire Co.'s corporate team sets broad income targets for its districts, district and branch managers are granted extensive authority to make operating decisions to best serve their customers and achieve their quarterly budgets. This past month, the operating income of one of Speedy Tire Co.'s locations, the Hamden, Conn., branch, was significantly below target. To support the company's policy of management by exception-whereby upper management only gets involved when performance significantly deviates from expectations-the New England district general manager, Cat Ford, has enlisted you to examine the results and talk to management personnel to understand what happened. Her expectation is that by calculating and analyzing the branch's operating income variances, you can communicate "the story" to district and branch management, identify potential areas of operational concern, and help suggest operational changes, so that the branch's performance can rebound for the remainder of the fiscal quarter.

Notes:

Originally Published InBeg, Z. (2020). Flex Budgets and Variances at Speedy Tire Co. IMA Education Case Journal, 13(4), Article 2.

Description based on XML content.

ISBN:

1-5297-9696-2

9781529796964

OCLC:

1290779549