ABC Computer was found in 1975 and it enjoyed a fast early growth. However, success did not last long because of the introduction of personal computer and stiff competition in the market. Several executives were of the opinion that the company needed a more professional approach. The pros and cons were weighted and a CEO with a proven track record from an MNC was appointed to give ABC Computers the much needed direction. The new CEO employed cost-cutting measures to improve the companys profitability. He also resorted to other measures like minimizing duplication of efforts, improving R & D, and promoting a healthy interpersonal relationship amongst departments. These and other steps resulted in a tremendous increase in the companys earnings.

Q1: What was the main problems?

Q2: what are the main reasons leading to these problems?

Q3: Explain the relationship between planning and controlling? support your answers with what we take in lectures.

Q4: Suggest two recommendation for this particular case?