Case 22-4 Enager Industries, Inc

Case Background
Enager Industries, Inc. was a relatively young company whom manufactured and produced products/services within three divisions- Consumer Products, Industrial Products and Professional Services. Consumer Products, the oldest among the three divisions in Enager, designed, manufactured and marketed a line of houseware items. Industrial Products built one –of –a– kind machine tools to customer specifications. Professional Services, the newest among the three, provided several kinds of engineering services and this division had grown rapidly because of its capability to perform “environmental impact” studies . At the urging of CFO Henry Hubbard, Enager’s President, Carl Randall, had decided to …show more content…

The goal of the system is to improve the collective decisions within an organization.
To be effective, management control systems should be (a) closely aligned to an organization's strategies and goals, (b) designed to fit the organization's structure and the decision-making responsibility of individual managers, and (c) able to motivate managers and employees to put in effort to attain selected goals desired by top management.

The Three divisions to consider: Consumer Products, Industrial Products and Professional Services. Consumer Products, the oldest among the three divisions in Enager, designed, manufactured and marketed a line of houseware items. Industrial Products built one –of –a– kind machine tools to customer specifications. Professional Services, the newest among the three, provided several kinds of engineering services.

Answers to Guide Questions

Question 1. Why was McNeil's new product proposal rejected? Should it have been? Explain.

Mc Neils proposal was rejected because it did not meet the 15%