Waltham Motors

Waltham Motors Case Analysis

MBA 632

Measurement I

Spring 2011 Switzerland

4th of March 2011

1. Waltham Motors’ Background

According to the Case of Waltham Motors, Waltham Motors was a wholly owned subsidiary of Marco and was manufacturing electric motors of single design which normally were sold out towards the household appliance manufacturers; Moreover, in 2003 the family-owned business acquired by Marco Corporation.

In the case, it has mentioned that Sharon Michaels with Master degree in Business Administration transferred to the company as a division controller. Concerning the problems that company faced, in May 2004 Michaels asked her plant accountant for the figures as fast as possible (Michaels was surprised that how fast plant accountant could submit financial report).

Looking at the figures as well as financial report of the company, Michaels mentioned the differences between budgeted profits ($91,200) and the actual position (outcome) of the company (referencing from the case, the division had lost $7,200 in May).

Considering the information that has mentioned in the case, within the following sections of this paper, the author is going to demonstrate the important facts and analysis of the Waltham Motors case throughout qualitative and quantitative methods. In addition, the conclusion as well as useful recommendations will be proposed, in order to drive the company to the better outcome following to the problems that they face.

2. Waltham Motors Division

2.1. Findings and Analysis

Looking back to the introduction part, it has shown that the company has a major problem concerning the budgeted profit and the actual performance. In order to get a more clear understanding of what is the current situation of the company, the calculation of how many units had to be sold by the company in order to breakeven has to be shown. According to Bragg.S.M. (2007) Breakeven...