Case study:
ForeBall Ltd.. is a North American manufacturer and retailer of premium, innovative golf equipment. ForeBall has two main divisions, product development and manufacturing (PDM) and product inventory, distribution and retail (PIDR).
In December, Edward Walters was promoted to the position of Chief Procurement Officer (CIO) at ForeBall Ltd.. Edward was formerly a Supply Chain Management Category Specialist supporting the product development and manufacturing division.
Edward has been invited to an urgent meeting tomorrow with Katrina Missant, the Chief Financial Officer.
The agenda concerns the fiscal year end close for December 31st. Katrina asked Edward to attend and speak about his Supply management plan and strategies to reduce operating, inventory and purchasing costs by 30% for Q4 2022 to help meet projected budget and income statement improvements mandated by the corporate Board of Directors.
Katrina sent Edward a copy of the Income Statement: INCOME STATEMENT Q4 2021 Sales $ 280 million Cost of Goods Sold $ 100 million Gross Profit $ 90 million Operating Expenses $ 35 million Operating Income $ 25 million
After receiving the Income Statement from Katrina, Edward received another one from the corporate Controller Adam Scott for Q4 in which the numbers varied considerably. This perplexed Edward because the numbers were doubled from the one presented from Katrina. Adam explained to Edward that the income statements varied considerably from Quarter to Quarter and further explained that this has been a recent problem due to recent system issues and recommended Edward to consult the Sales Department to validate the real numbers because they had the accurate ones from a recent audit and corporate report.
Edward asked Adam to explain the variations and Adam noted that due to the company being focused exclusively on golf that this is a seasonal activity so the sales and profits typically are highest from April to December and then they incur very sharp declines from January to March which makes cash flow very challenging. Adam commented that he never understood why the company never took advantage of those months to focus more on sales and product development and procurement. He indicated to Edward that his job as Controller has been very challenging during the peak season months from April to December because he is always pressed to ensure cash flow is very flush and readily available. He said it has placed great strain on the Accounts receivable department to press their customers to pay quickly. Adam
2
also indicated to Edward that in the past Procurement were at odds with him and his team in Finance because they felt disadvantaged in procurement deals by Finance. Adam indicated to Edwrad that he hoped they could foster a most positive relationship together and would be open to Edward’s new ideas.
Just prior to attending the meeting with Katrina, Edward received a call from John Joseph, Vice President Sales. John informed Edward that the Sales Team was pursuing a deal with ActiRFIDx International, a large innovative technology corporation specializing in RFID and GPS technologies for the sports industry, located in Saint John, NB. and throughout adjacent states of Maine and New Hampshire in the United States, to unit in a joint venture whereby ForeBall golf balls would be affixed with ActiRFIDx chips and sold to luxury golf clubs across North America. John informed Edward that this collaboration would mean a sale of 1 million of their new prototype EcoFore golf balls. This deal represents $ 125 million in sales for ForeBall Ltd in North America.
John explained to Edward that the terms of the proposed sale requires ForeBall Ltd.. to manufacturer and supply 1 million to their prototype golf ball units to ActiRFIDx by June 30th John pressed Edward to have all suppliers and contracts for the goods and materials secured as soon as possible so the sales team can land the deal.
As soon as Edward met with John his phone rang and it was Jerry Porter from Stores and Materials Management. Jerry heard about the potential Sales deal with ActiRFIDx and explained to Edward that they were sitting on $ 250K of inventory of the prototype balls and 750K of their regular premium balls. Edward thanked Jerry for providing these details since they were important for Return on Asset computations.
What should Edward do? What should his priority be?
Ans format:
Section 1: Immediate issue /prob (do it last)
Section 2: Basic or associated issues
Section 3: Issue analysis or information summary. Find the immediate issue
Section 4: Alternatives and options
Section 5: Recommendation and implementation
Section 6: Monitor and control

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Today at 5:23 PM
Business

Answered

Case study:
ForeBall Ltd.. is a North American manufacturer and retailer of premium, innovative golf equipment. ForeBall has two main divisions, product development and manufacturing (PDM) and product inventory, distribution and retail (PIDR).
In December, Edward Walters was promoted to the position of Chief Procurement Officer (CIO) at ForeBall Ltd.. Edward was formerly a Supply Chain Management Category Specialist supporting the product development and manufacturing division.
Edward has been invited to an urgent meeting tomorrow with Katrina Missant, the Chief Financial Officer.
The agenda concerns the fiscal year end close for December 31st. Katrina asked Edward to attend and speak about his Supply management plan and strategies to reduce operating, inventory and purchasing costs by 30% for Q4 2022 to help meet projected budget and income statement improvements mandated by the corporate Board of Directors.
Katrina sent Edward a copy of the Income Statement: INCOME STATEMENT Q4 2021 Sales $ 280 million Cost of Goods Sold $ 100 million Gross Profit $ 90 million Operating Expenses $ 35 million Operating Income $ 25 million
After receiving the Income Statement from Katrina, Edward received another one from the corporate Controller Adam Scott for Q4 in which the numbers varied considerably. This perplexed Edward because the numbers were doubled from the one presented from Katrina. Adam explained to Edward that the income statements varied considerably from Quarter to Quarter and further explained that this has been a recent problem due to recent system issues and recommended Edward to consult the Sales Department to validate the real numbers because they had the accurate ones from a recent audit and corporate report.
Edward asked Adam to explain the variations and Adam noted that due to the company being focused exclusively on golf that this is a seasonal activity so the sales and profits typically are highest from April to December and then they incur very sharp declines from January to March which makes cash flow very challenging. Adam commented that he never understood why the company never took advantage of those months to focus more on sales and product development and procurement. He indicated to Edward that his job as Controller has been very challenging during the peak season months from April to December because he is always pressed to ensure cash flow is very flush and readily available. He said it has placed great strain on the Accounts receivable department to press their customers to pay quickly. Adam
2
also indicated to Edward that in the past Procurement were at odds with him and his team in Finance because they felt disadvantaged in procurement deals by Finance. Adam indicated to Edwrad that he hoped they could foster a most positive relationship together and would be open to Edward’s new ideas.
Just prior to attending the meeting with Katrina, Edward received a call from John Joseph, Vice President Sales. John informed Edward that the Sales Team was pursuing a deal with ActiRFIDx International, a large innovative technology corporation specializing in RFID and GPS technologies for the sports industry, located in Saint John, NB. and throughout adjacent states of Maine and New Hampshire in the United States, to unit in a joint venture whereby ForeBall golf balls would be affixed with ActiRFIDx chips and sold to luxury golf clubs across North America. John informed Edward that this collaboration would mean a sale of 1 million of their new prototype EcoFore golf balls. This deal represents $ 125 million in sales for ForeBall Ltd in North America.
John explained to Edward that the terms of the proposed sale requires ForeBall Ltd.. to manufacturer and supply 1 million to their prototype golf ball units to ActiRFIDx by June 30th John pressed Edward to have all suppliers and contracts for the goods and materials secured as soon as possible so the sales team can land the deal.
As soon as Edward met with John his phone rang and it was Jerry Porter from Stores and Materials Management. Jerry heard about the potential Sales deal with ActiRFIDx and explained to Edward that they were sitting on $ 250K of inventory of the prototype balls and 750K of their regular premium balls. Edward thanked Jerry for providing these details since they were important for Return on Asset computations.
What should Edward do? What should his priority be?
Ans format:
Section 1: Immediate issue /prob (do it last)
Section 2: Basic or associated issues
Section 3: Issue analysis or information summary. Find the immediate issue
Section 4: Alternatives and options
Section 5: Recommendation and implementation
Section 6: Monitor and control

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