Charleston Motors International case
Introduction Charleston Motors International (CMI) is an international company with three divisions. The Engine Division (ED) manufactures standard carburetor engines and fuel injected engines. ED sells all of their carburetor engines to the Snowmobile Division (SD). SD manufactures snowmobiles, which are sold to domestic customers and also exported to the international market. The International Division (ID) of CMI, located in Sweden, imports these snowmobiles from SD and sells them to customers in Sweden, where in two years of operation it has gained a significant market share following a penetration pricing strategy. Each division is organized as an individual investment center and performance evaluation and divisional bonuses are based on achieving a 12% divisional ROI. The purpose of this report is to look into the divisional and overall corporate performance of CMI. Recently there have been problems between the three divisions, affecting the overall health of the company. The ED division manager has made two proposals to improve his divisions ROI, both directly affecting the other division’s income and ROI. This report will analyze and assess the two proposals, along with their behavioral implications, as well as evaluate the company’s current situation and recommend improvements and actions based on this evaluation.
Ratings
where are the exhibits?
by trishsong1117