Loyola Marymount University
MBAJ 613 Profit Planning and Managerial Decisions
Fall 2007
Instructor:
Office:
Campus phone:
Home phone:
E-mail:
Web Site:
James W. Healy
Hilton 57
(310) 338(909) 982-2163
jwhealy@qry.com
Blackboard
Text:
Managerial Control Systems, 12th Ed.
Anthony and Govindarajan
Irwin/ McGraw Hill, 2007
ISBN-10: 0-07-310089-7
Office Hours:
Tues:
Thur:
2:30 – 4:00 pm
12:15 – 1:45 pm
Course Objective:
This course will focus on the means used by senior management to insure that the strategy they have developed is
implemented. In this context, we will delve into the importance of organizational structure, both formal and informal, and
the establishment of operating controls to achieve those strategic objectives. Methods of establishing goals, analyzing
performance and, more importantly, taking corrective action will be explored as will techniques for allocating assets,
dealing with risk, and other general management decisions. Coursework will include both lectures and case studies to be
prepared as homework and discussed in class.
Course work: Students will be expected to come to class having read the assigned text and completed the assigned
homework. The learning process takes place through discussion; therefore, all students are expected to participate in
classroom discussion of the assigned material.
Grades:
Students will be graded as follows:
1. Contribution to class discussion
2. Mid-term exam
3. Homework assignments (case outlines)
4. Final exam
Points
200
300
200
300
1,000
Grade
A = 940 points
B = 840 points
C = 720 points
F = > 680 points
Class Participation:
Participation means adding to the intellectual content of the class through insightful questions or answers to questions,
providing additional information to comments by the professor or other students, etc.. Disruptive, pointless questions or
irrelevant comments hurt rather than help participation grades. All students are expected to contribute to case
discussions.
Other Information:
If you are having difficulty with any of the subject matter please see me or call me. My home phone is listed above. Feel free
to call. If I am not in, leave your name and phone number on my answering machine and I will return your call. Please do
NOT leave messages on the campus phone. Email is an even better way to communicate because you can ask the question
when it occurs to you and I can reply as soon as I am available. Furthermore, you will have your answer in writing for future
reference.
MBAJ 613 F07
Topic
Assignment – to be completed before start of class
Class
Date
1
8/28
Introduction to class
Management Control Systems
2
9/4
Organizational Behavior
Read Chapters 1, 2, & 3
Prepare Case 3-1 Southwest Airlines
3
9/11
Cost Centers, Profit Centers and
Transfer Pricing
Read Chapters 4, 5, & 6
Prepare Case 5-4 Abrams Company and
Case 6-2 Birch Paper Company
4
9/18
Managing Assets to Improve Return
Read Chapter 7
Prepare Case 7-3 Quality Metal Service Center
5
9/25
Strategic Planning
Read Chapter 8
Prepare Case 8-2 Hasbro Interactive
6
10/2
Mid-term Exam
Take home exam case to be discussed in class
7
10/9
Budgeting
Read Chapter 9
Prepare Case 9-1 New York Times
8
10/16
Analyzing Financial Performance
Read Chapter 10
Prepare Case 10-3 Galvor Company
10/23
Holiday
No class
9
10/30
Performance Measurement
Read Chapter 11
Prepare Case 11-3 CUP Corporation
10
11/6
Management Compensation Systems
Read Chapter 12
Prepare Case 12-4 Wayside Inns, Inc.
11
11/13
Different Controls for Different
Strategies
Read Chapter 13
Prepare Case 13-4 Texas Instruments
12
11/20
Controls in Service Organizations
Read Chapter 14
Prepare Case 14-1 O’Reilley Associates
13
11/27
Managing Global Businesses
Read Chapter 15
Prepare Case 15-1 AB Thorsten
14
12/4
Project Control Systems
Read Chapter 16
Prepare Case
12/11
Final Exam
4:25 – 7:05 pm
Take home exam case to be discussed in class