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You are the manager of Company A. According to the contract, Industrial Association (Company B) must deliver textile products worth 300 thousand UAH in the

You are the manager of Company “A”. According to the contract, Industrial Association (Company “B”) must deliver textile products worth 300 thousand UAH in the 2nd quarter of 2018 year to the trading Company “A”. In fact, in the beginning of the 3rd quarter delivered number of textile products was at a much lower amount, what influenced negatively on the economic indicators of trade Company “A”.

Head of Sales Department in Company “B” Sidorenko S. by official letter dated June 25 reported the Head of Company “A”, that failure of supply number of textile products for the 2nd quarter will be compensated in the 3rd quarter of 2019 year. Head of commercial department in Company “A” Osadchiy T. instructed the manager of commercial department Grishenko V. to find out the reasons for failure in terms of the contract by Company “B”, and report to him.

Manager of the commercial department Grishenko V. found out that merchandiser of his department Cherednichenko Y. a month ago, by breaking the conditions stipulated in the contract, gave a verbal consent to the sales department of Company “B” for delivery of the undelivered goods in 3rd quarter of this year.

Company “B” without valid reasons disturbed terms of the contract in the previous periods too, and had warnings from the trade Company “A”. Information on the supply number of textile products by Company “B” to Company “A” by product groups in the second quarter of 2019 are presented in Table 1.

Table 1

Number of textile products by product groups in the 2nd quarter of 2019 supplied by Company “B” to Company “A” (thousand UAH.)

Goods

According to the contract

In fact

Deviation

The share of groups in total volume%

Absolute

Comparative

plan

fact

1

Wool fabric

51,6

24,7

2

Linen fabric

40,2

22,4

3

Silk fabrics

52,4

32,0

4

Cotton fabrics

131,6

11,4

5

Synthetic fabrics

24,2

9,5

TOTAL

Tasks

  1. Fill the Table 1.
  2. Make analysis of situation in a form of a note to the director.
  3. Make the decision on the implementation terms of the contract by Company "B" and formalize it as organizational activities on increasing effective management of Company “A”.

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Table 1 Goods According to the contract In fact Deviation The share of groups in total volume Absolute Comparative 1 Wool fabric 516 247 269 172 521 452 2 Linen fabric 402 224 178 132 443 440 3 Silk f... blur-text-image

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