Solved: Xellnet provides e commerce software for the

pharmaceuticals industry Xellnet

Xellnet provides e commerce software for the pharmaceuticals industry Xellnet

Xellnet provides e- commerce software for the pharmaceuticals industry. Xellnet is orga-nized
into several divisions. A companywide planning committee sets general strategy and goals for
the company and its divisions, but each division develops its own budget.
Lonnie Draper is the new division manager of wireless communications software. His division
has two departments: development and sales. Chad Sanchez manages the 20 or so
programmers and systems specialists typically employed in the development department to
create and update the division’s software applications. Liz Smith manages the sales
department.
Budgeting is in progress. Sanchez met with his staff and is now struggling with two sets of
numbers. Alternative A is his best estimate of next year’s costs. However, unexpected
problems can arise when writing software, and finding competent pro-grammers is an ongoing
challenge. He knows that Draper was a programmer before he earned an MBA so he should be
sensitive to this uncertainty. Consequently, he is thinking of increasing his budgeted costs
(Alternative B). His department’s bonuses largely depend on whether the department meets its
budgeted costs.

Liz Smith is also struggling with her sales budget. Companies have made their initial
investments in communications software so it is harder to win new customers. If things go well,
she believes her sales team can maintain the level of growth achieved over the past few years.
This is Alternative A in the sales budget. However, if Smith is too optimistic, sales may fall short
of the budget. If this happens, her team will not receive bonuses. Therefore, Smith is
considering reducing the sales numbers and sub-mitting Alternative B.

Split your team into three groups. Each group should meet separately before the entire team
meets.

Requirements
1. The first group plays the role of development manager Chad Sanchez. Before meeting with
the entire team, determine which set of budget numbers you are going to present to Lonnie
Draper. Write a memo supporting your decision. Give this memo to the third group before the
team meeting.
2. The second group plays the role of sales manager Liz Smith. Before meeting with the entire
team, determine which set of budget numbers you are going to present to Lonnie Draper. Write
a memo supporting your decision. Give this memo to the third group before the team meeting.
3. The third group plays the role of division manager Lonnie Draper. Before meeting with the
entire team, use the memos that Sanchez and Smith provided you to prepare a division budget
based on the sales and development budgets. Your divisional overhead costs (additional costs

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 beyond those incurred by the development and sales departments) are approximately $
390,000. During the meeting of the entire team, the group playing Draper presents the division
budget and considers its implications. Each group should take turns discussing its concerns with
the proposed budget. The team as a whole should consider whether the division budget must
be revised. The team should prepare a report that includes the division budget and a summary
of the issues covered in the teammeeting.

Xellnet provides e commerce software for the pharmaceuticals industry Xellnet

ANSWER
https://solvedquest.com/xellnet-provides-e-commerce-software-for-the-pharmaceuticals-industry-
xellnet/

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