Parker Pen Company
Case Analysis: Cosmos Club
I – Time Frame
In January 1983, Mr. Joseph Kabiling, Cosmos Club’s Business Manager, was left with the decision of whether or not to present his proposal to acquire a point-of-sale equipment at this year’s Finance Committee meeting on capital expenditures. Through the years, the club’s restaurant registered higher than expected losses, compared to any of the club’s revenue-generating services. Thus, he left that this might improve the dining room operations although he was unsure of its viability and adoptability to the club’s environment.
Company Background
The Cosmos Club which started in 1878, is a private social club and its purpose was to provide a venue for discussions and an exchange of ideas among individuals who were distinguished in the arts and sciences. Its office is located along Massachusetts Avenue, right at the center of Washington D.C.’s embassy row.
The club had an original membership of ten. But its membership roster had currently reached 9,500; however, only 3,500 were active. To limit its members, the club enforced a policy that applications were accepted only upon the demise or resignation of existing members. Among its members were several Nobel Prize winners, award-winning writers, known politicians, and other distinguished individuals.
There were three committees that governed the operations of the club: 1) the House Committee; 2) the Finance Committee; and 3) the Admissions committee.
The House Committee was responsible for the overall operations of the club. It also looked into its facilities and is responsible for supervising the daily activities of the club. The Finance Committee, managed the club’s assets, and reviewed all capital expenditures request. All proposals for changes in the operating system of the club were reviewed by this committee. The Admissions Committee required each member to pay $500 annual dues. New member were also required to pay an invitation fee of $400 for
I – Time Frame
In January 1983, Mr. Joseph Kabiling, Cosmos Club’s Business Manager, was left with the decision of whether or not to present his proposal to acquire a point-of-sale equipment at this year’s Finance Committee meeting on capital expenditures. Through the years, the club’s restaurant registered higher than expected losses, compared to any of the club’s revenue-generating services. Thus, he left that this might improve the dining room operations although he was unsure of its viability and adoptability to the club’s environment.
Company Background
The Cosmos Club which started in 1878, is a private social club and its purpose was to provide a venue for discussions and an exchange of ideas among individuals who were distinguished in the arts and sciences. Its office is located along Massachusetts Avenue, right at the center of Washington D.C.’s embassy row.
The club had an original membership of ten. But its membership roster had currently reached 9,500; however, only 3,500 were active. To limit its members, the club enforced a policy that applications were accepted only upon the demise or resignation of existing members. Among its members were several Nobel Prize winners, award-winning writers, known politicians, and other distinguished individuals.
There were three committees that governed the operations of the club: 1) the House Committee; 2) the Finance Committee; and 3) the Admissions committee.
The House Committee was responsible for the overall operations of the club. It also looked into its facilities and is responsible for supervising the daily activities of the club. The Finance Committee, managed the club’s assets, and reviewed all capital expenditures request. All proposals for changes in the operating system of the club were reviewed by this committee. The Admissions Committee required each member to pay $500 annual dues. New member were also required to pay an invitation fee of $400 for