BLACKHEATH MANUFACTURING COMPANY PARTI Mr. Blackheath had promoted Lee High to vice president of finance. Lee had practically been running the firm for several years during which time sales and profit had been declining. On November 15, Mr. Blackheath announced that his son, Trafalgar Blackheath, would take over as graduate of an MBA program and for several years had been working for a large consulting firm as a marketing specialist. In their private discussions, Mr. Blackheah told his son that the problems in the family firm were marketing rather than financial, so the situation was ready-made for Trafalgar. Mr. Blackheath, it seems, had been completely taken by Lee High. owner and president on January 1 . Trafalgar was When Trafalgar arrived on December 1, and began to read various internal reports, he realized Blackheath Manufacturing did not have a cash budget, and there didn't seem to be much in the way of financial planning. Trafalgar asked Lee about this. Lee's response was that Blackheath Manufacturing ran on developed decision rules, and budgets weren't necessary because if the firm ever ran out of funds, Mr. Blackheath simply deposited $10,000 or $20,000 in the bank. Trafalgas response was know much about budgeting, but he would get an assistant to work up some "stuff the basis of several well- clear: "My father is a millionaire, but I am not! Lee indicated he didst Trafalgar decided to call his old friend Crofton Brockley. Brockley was in charge of several large budgeting projects for a consulting firm, and Trafalgar kne Croftion to be a recognized expert on budgeting for small companies. Fortunately for Trafalgar, Brockley wasn't busy that week and was able to fly down the next day Crofton spent two days going over the accounting records, interoffice memos and everything else he could find. On Friday morning. Trafalgar found the following note on his desk: Dear Trafalgar Had to leave last night for Pittsburgh. During the two days I spent in the office, I discovered You have no budget or control system at all 2. Lee High's decision rules are all wrong. 3. High doesn't know the first thing about finance, budgeting or marnnfacturing Will be back on Monday morning to talk to you By the way, f you can find Adelaide Ladywell, I would like to speak to her Your friend Crofion BLACKHEATH MANUFACTURING COMPANY PARTI Mr. Blackheath had promoted Lee High to vice president of finance. Lee had practically been running the firm for several years during which time sales and profit had been declining. On November 15, Mr. Blackheath announced that his son, Trafalgar Blackheath, would take over as graduate of an MBA program and for several years had been working for a large consulting firm as a marketing specialist. In their private discussions, Mr. Blackheah told his son that the problems in the family firm were marketing rather than financial, so the situation was ready-made for Trafalgar. Mr. Blackheath, it seems, had been completely taken by Lee High. owner and president on January 1 . Trafalgar was When Trafalgar arrived on December 1, and began to read various internal reports, he realized Blackheath Manufacturing did not have a cash budget, and there didn't seem to be much in the way of financial planning. Trafalgar asked Lee about this. Lee's response was that Blackheath Manufacturing ran on developed decision rules, and budgets weren't necessary because if the firm ever ran out of funds, Mr. Blackheath simply deposited $10,000 or $20,000 in the bank. Trafalgas response was know much about budgeting, but he would get an assistant to work up some "stuff the basis of several well- clear: "My father is a millionaire, but I am not! Lee indicated he didst Trafalgar decided to call his old friend Crofton Brockley. Brockley was in charge of several large budgeting projects for a consulting firm, and Trafalgar kne Croftion to be a recognized expert on budgeting for small companies. Fortunately for Trafalgar, Brockley wasn't busy that week and was able to fly down the next day Crofton spent two days going over the accounting records, interoffice memos and everything else he could find. On Friday morning. Trafalgar found the following note on his desk: Dear Trafalgar Had to leave last night for Pittsburgh. During the two days I spent in the office, I discovered You have no budget or control system at all 2. Lee High's decision rules are all wrong. 3. High doesn't know the first thing about finance, budgeting or marnnfacturing Will be back on Monday morning to talk to you By the way, f you can find Adelaide Ladywell, I would like to speak to her Your friend Crofion