Pelican Instrument Inc.

Steve Park president and principal stockholder of Pelican Instruments, Inc

Second year performance:
Exceeded profit budget by $622,000
Two main lines of business:
Electric meters (EM) based on mechanical and electrical technology
Electric instruments (EI) based on microchip technology
*both industrial measuring instruments and perform similar functions but differ in
their manufacturing technology and their end-use characteristics
*substitute products in the same sense that a mechanical watch and a digital watch
are substitutes.

Pelican Instruments uses variable costing.

Prepare the report that you feel Amy Shultz should present to Mr. Park.
Put yourself in the position of the following six managers:
General Manager (EM)
Marketing Manager (EM)
Market share
Manufacturing Manager (EM)
Efficiency
Operational Management
General Manager (EI)
Marketing Manager (EI)
Manufacturing Manager (EI)

These six managers compete for a share in the companys bonus pool. For each of
the six, how would you make a case for your obtaining a share of the bonus pool?
As Mr. Park, how would you feel about the 1997 performance of each of the six
mangers who are competing for a share of the bonus pool? (Note: Consider the
strategy of EM and EI business units in your performance assessment.)