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Were in trouble Your boss tells you one day. End of the quarter is coming and there is no way were going to make our

"Were in trouble Your boss tells you one day. End of the quarter is coming and there is no way were going to make our sales budget, he adds. You know what that means? he asks. Then he answers his own question saying, no bonus for you, for me or for our departments head; hes going to be very upset! Your boss then proceeds to tell you his plan for saving everyones bonus and meeting the quarters budget. He will send an email to some major customers informing them of a 10% price increase effective on the start of next quarter. The customers will then place next quarters orders by the end of this quarter to beat the price increase and youll be able to meet your sales budget. After the end of the quarter, your boss plans to send a memo rescinding the announced price increase.

Please comment on the following:

1. What shortcomings of the budgeting process do you see in this story and how would you address them?

2. In your opinion does the plan go against any rules or regulations? Is the plan ethical?

3. What short and long term impact will your boss plan have for the companys employees, its shareholders and its customers?

4. What would you advise your boss regarding his plan and why?

5. What alternate course of action would you suggest?

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