Oriole Furniture, Inc. (A)

5 Pages Posted: 21 Oct 2008

See all articles by Mark E. Haskins

Mark E. Haskins

University of Virginia - Darden School of Business

William Rotch

University of Virginia - Darden School of Business

Abstract

This case first describes, in general terms, a fairly typical annual budgeting process for a division of a company. It then depicts, as of the end of May, the division's actual performance compared with where it should be. Based on where the division's results stand as of the end of May, students are asked to generate ideas regarding what to do during the remaining seven months in order to make budget.

Excerpt

UVA-C-2191

Rev. Jun. 17, 2009

ORIOLE FURNITURE, INC. (A)

Bernard Mente, vice president of the Rattan Furniture Division of Oriole Furniture, Inc., was faced with a difficult decision in mid-June. He was wondering what he should do in light of his division's failure to meet sales and profit goals during the first five months of the year. Despite the recession, the division had managed to meet the sales and profit budget for the first three months, but the deepening recession had severely affected the results of the following two months.

The Company

Oriole Furniture, Inc., was a 30-year old distributor of high-quality, imported furniture. The company was organized into four divisions: Teakwood, Antiques, Rosewood, and Rattan. Four centralized staff departments were organized to support the product groups: finance and control, marketing, purchasing, and engineering. Each of the four product divisions was a profit center.

. . .

Keywords: budgeting profit planning

Suggested Citation

Haskins, Mark E. and Rotch, William, Oriole Furniture, Inc. (A). Darden Case No. UVA-C-2191, Available at SSRN: https://ssrn.com/abstract=908088

Mark E. Haskins (Contact Author)

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States
434-924 -4826 (Phone)

HOME PAGE: http://www.darden.virginia.edu/faculty/haskins.htm

William Rotch

University of Virginia - Darden School of Business

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

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