Blackheath Manufacturing Company Revisited

Blackheath Manufacturing Company Revisited

  • Submitted By: anikoi
  • Date Submitted: 04/08/2014 3:45 PM
  • Category: Business
  • Words: 1366
  • Page: 6

Blackheath Manufacturing Company- Revisited
Lee High worked at Blackhealth Manufacturing Company for many years. The owner of the company, Mr. Blackhealth, had promoted Lee High to vice president of finance. Lee had practically been running the firm for many years and during that time sales and profit decreased. Shortly after Lee High was promoted, Mr. Blackhealth announced that his son would be taking over as owner and president. Mr. Blackheath’s son, Trafalgar realized that big changes needed to be made in order to make this business successful.
The major thing that Trafalgar noticed was that there was no budgeting or financial planning being done. Lee High told Trafalgar that they ran on a basis of several well developed business rules and budgets weren’t necessary because they had a funding source in Mr. Blackhealth to cover any losses. Trafalgar immediately knew that he had to change the way business was done at Blackhealth Manufacturing Company. Budgeting and financial planning are essential to a viable, successful, profitable business.
Trafalgar immediately contacted his friend, Crofton Brockley. Brockley had extensive financial experience and Trafalgar knew that he could lead the company in the right direction. Brockley advised Trafalgar to get rid of Lee High and hire back an employee that used to do things correctly, Adelaide Ladywell. Once they had the right staff in place, they used information that was available to them and developed a budgeting system and process. They were then able to put together informative financials and analyze results on routinely. There were many different reliable financial reports put together that allowed the management of Blackheath Manufacturing Company to make informed strategic decisions.


















1) Production Budget
Below is a table for the production schedule for the company. Starting January 1st, 2001 the company had 750 units of product complete and 800 units of raw...

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