BUSINESS: INTRODUCTION TO
BUSINESS MANAGEMENT
COURSE 2018-19
CASE 1
THE COMPANY AS A SYSTEM
EXERCISE 1:
Laura Sanchez and Lucia Garcia are two friends that studied Industrial Engineering together. In
early 2016 they founded IMASDE, a consulting firm. They managed and redact R&D projects for
companies and look for grants and funding for those projects. January 1st, 2016 the company was
stablished with 60.000 euros of share capital, contributed by the two founders in equal parts.
Furthermore, they obtained a grant for 30.000 euros and a bank loan for 20.000 euros. For the last
one, they pay 600 euros every month for amortization and interests.
Nowadays, the company has five workers, of which: three are linked to project management,
redaction and search for grants and funding (Juan, Nuria and Laura herself, who is the manager of
this area). Another one (Roberto) takes charge of the company’s accounting and finance. Finally,
Jorge takes over company’s relationships, looking for new customers among other companies.
Apart those activities, Laura and Lucia run the company together.
The office is in As Gándaras Industrial Complex in O Porriño and costs 1.200 euros. Together with
the salaries (up to 14.000 euros every month), they represent the higher spendings of the
company. Electric bill does not exceed 150 euros and Internet bill is 100 euros per month. The
telephone bill is, in average, 350 euros per month. The office has five computers, three printers
and a Xerox, besides office furniture.
During its first year, IMASDE registered a 10.000 euros profit.
Laura and Lucia have decided to modify the sales policy, trying to increase their turnover a 20%
compared to last year:
a) Paper ads, at the beginning of each month, in a national newspaper and in Faro de Vigo.
b) 10% discounts to those customers hiring services for more than 20.000 euros, paying in
cash.
IT IS REQUESTED:
To analyze this company as a system, identifying:
1. The inputs and outputs.
2. The activities corresponding to the transformation process of this company. Classify
these activities as they belong to production, sales (commercialization), finance or
management subsystems.
3. Factors mentioned by the case as part of the feed-back mechanism.
