You are the manager of Company “A”. According to the contract, Industrial Association (Company “B”) must deliver textile products worth 300 thousand UAH in the 2nd quarter of 2018 year to the trading Company “A”. In fact, in the beginning of the 3rd quarter delivered number of textile products was at a much lower amount, what influenced negatively on the economic indicators of trade Company “A”.

Head of Sales Department in Company “B” Sidorenko S. by official letter dated June 25 reported the Head of Company “A”, that failure of supply number of textile products for the 2nd quarter will be compensated in the 3rd quarter of 2019 year. Head of commercial department in Company “A” Osadchiy T. instructed the manager of commercial department Grishenko V. to find out the reasons for failure in terms of the contract by Company “B”, and report to him.

Manager of the commercial department Grishenko V. found out that merchandiser of his department Cherednichenko Y. a month ago, by breaking the conditions stipulated in the contract, gave a verbal consent to the sales department of Company “B” for delivery of the undelivered goods in 3rd quarter of this year.

Company “B” without valid reasons disturbed terms of the contract in the previous periods too, and had warnings from the trade Company “A”. Information on the supply number of textile products by Company “B” to Company “A” by product groups in the second quarter of 2019 are presented in Table 1.

Table 1

Number of textile products by product groups in the 2nd quarter of 2019 supplied by Company “B” to Company “A” (thousand UAH.)

№	Goods	According to the contract	In fact	Deviation		The share of groups in total volume%
				Absolute	Comparative	plan	fact
1	Wool fabric	51,6	24,7
2	Linen fabric	40,2	22,4
3	Silk fabrics	52,4	32,0
4	Cotton fabrics	131,6	11,4
5	Synthetic fabrics	24,2	9,5
TOTAL

Tasks

1. Fill the Table 1.
2. Make analysis of situation in a form of a note to the director.
3. Make the decision on the implementation terms of the contract by Company "B" and formalize it as organizational activities on increasing effective management of Company “A”.

Answer rating: 100% (QA)

Table 1 Goods According to the contract In fact Deviation The share of groups in total volume Absolute Comparative 1 Wool fabric 516 247 269 172 521 452 2 Linen fabric 402 224 178 132 443 440 3 Silk f... View the full answer