Essay by chaylagarzaCollege, Undergraduate November 2014

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Sunflower Incorporated Case Study

Chayla Garza

MGMT 3355

Sunflower Incorporated

This case study will contain a summary of the case, a statement of the problem occurring, and a response to four discussion questions.

Case Summary

Sunflower Incorporated is a large distribution company that distributes salty snack foods and liquor to autonomous retail stores throughout Canada and the United States. Canada and the United States and divided into 22 different regions and each region has their own group of people who manage and run that specific branch. Since every region has their own tastes in snacks and liquor it is requested that each region select their own inventory according to what sales best in that specific region.

In 1989 began using a reporting system so they could compare sales, cost, and profits across the 22 regions. That's when they were able to finally understand that their profits varied from region to region.

Sunflower decided that there needed to be change and possible incorporate some standardization.

Mr. Steelman, president of Sunflower, decided it was time to add another position within Sunflower that would manage and monitor pricing and purchasing. Agnes Albanese was hired to take on this position; she was to report to the vice president of finance, Mr. Mobley. Steelman and Mobley encouraged Albanese to gather information from each region in order to help her organize and establish whatever rules she though was necessary.

After three weeks on the job Albanese decided that pricing and purchasing should be standardized. So Albanese came up with a few rules: each financial executive from each region was to notify her when changes in local prices exceeded 3% and when any local purchases of more than $5,000 were made. Sunflower was about to hit peak...