Case Study Situation Go Fast
Business Law Sample
CASE STUDY SITUATION GO FAST is a motorcycle manufacturer in the southern United States. Though sales have been steady, profits have declined because of increasing operational costs. The Board of Directors felt a fresh look at the operations side was needed. They developed a 5-year plan to increase operating efficiency and set out to find someone to lead the effort. Four months ago, GO FAST found what they saw as “the person” to be the new operations director and develop a new operational plan to reduce costs. Jill Jones had an outstanding reputation as operations director for a manufacturer of a closely related product. While she was located in a different state and was happy with her current job and lifestyle, she found the 5-year plan exciting. Besides, the offer was too tempting to refuse. Jill was offered the position, including a substantial increase in salary and benefits. She accepted the job, sold her home, and purchased a home near her new job. Her husband runs an in-home business and her children had adapted well to the new community and schools. She did not have a written contract, but was promised a great future with GO FAST and was given a salary of $90,000 per year. With the economic downturn, sales for this past year were the lowest in five years. The company needs to make drastic cost reductions or it could face bankruptcy. All senior managers agreed to a 25% pay cut. Several other high-paid positions will be eliminated. Among them is Jill Jones’ operations director position.
Published by DECA Related Materials. Copyright © by DECA Inc. No part of this publication may be reproduced for resale without written permission from the publisher. Printed in the United States of America.
Business Law Page 2
YOUR CHALLENGE The CFO has been asked by the board of directors to investigate GO FAST’S obligation to Jill Jones. You have been assigned the task of doing research. The board of directors assumes their agreement with
CASE STUDY SITUATION GO FAST is a motorcycle manufacturer in the southern United States. Though sales have been steady, profits have declined because of increasing operational costs. The Board of Directors felt a fresh look at the operations side was needed. They developed a 5-year plan to increase operating efficiency and set out to find someone to lead the effort. Four months ago, GO FAST found what they saw as “the person” to be the new operations director and develop a new operational plan to reduce costs. Jill Jones had an outstanding reputation as operations director for a manufacturer of a closely related product. While she was located in a different state and was happy with her current job and lifestyle, she found the 5-year plan exciting. Besides, the offer was too tempting to refuse. Jill was offered the position, including a substantial increase in salary and benefits. She accepted the job, sold her home, and purchased a home near her new job. Her husband runs an in-home business and her children had adapted well to the new community and schools. She did not have a written contract, but was promised a great future with GO FAST and was given a salary of $90,000 per year. With the economic downturn, sales for this past year were the lowest in five years. The company needs to make drastic cost reductions or it could face bankruptcy. All senior managers agreed to a 25% pay cut. Several other high-paid positions will be eliminated. Among them is Jill Jones’ operations director position.
Published by DECA Related Materials. Copyright © by DECA Inc. No part of this publication may be reproduced for resale without written permission from the publisher. Printed in the United States of America.
Business Law Page 2
YOUR CHALLENGE The CFO has been asked by the board of directors to investigate GO FAST’S obligation to Jill Jones. You have been assigned the task of doing research. The board of directors assumes their agreement with