Mr Richard Musau is the Managing Director of a beverage manufacturing company called Masaku Beverages Ltd. in

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Question:

Mr Richard Musau is the Managing Director of a beverage manufacturing company called Masaku Beverages Ltd. in the east of Machakos in Kenya. It is the Kenyan division of the holding company known as Comesa Manufacturers of Africa (CMA) Ltd. located in Central Harare, Zimbabwe. The Chief Executive Officer (CEO) of CMA is Mr. David Songambele. Richard had a meeting last year with David. This was a board meeting which went on in the following way: Mr Musau: " Mr Songabele, we are a little below budget now, and I think we can hold that for the rest of the year. It won't get any worse." Mr Songambele: (looking at Richard and smiling) "Be on budget by the six-month mark; be on by the year." Mr Musau: " But David, there isn't enough time to get on it by the half of the year. I inherited this situation after all." Mr Songambele: (still smiling and looking at Richard) "Do I pay you a lot of money? Do I argue with you over what you want to spend? Do I bother you? Then don't tell me what the GOALS SHOULD BE. Be on budget by the half of the year; I repeat that be on it by the end of the year." Mr Musau: "What if I can't David? Mr Songambele: "Then clean out your desk and go home." Mr Musau: The following are the reasons why I couldn't meet the goals......" (before he finishes). Mr Songambele: "Not interested. My board and my stockholders want me to meet my target. The way I meet my target is for you guys to meet your targets. Meet your target Richard."

Questions:

What are the major assumptions which support Mr. Songambele's approach to setting goals and objectives?

What are the strengths, and weaknesses of an administrative system like that of Mr Songambele?

Under what circumstances might Mr Songambele's approach be (a) better and (b) worse than the participative management approach to setting goals and objectives? Design and develop a strategic management programme for Mr. Richard Musau to overcome his current deficit budget and earn profits in future.