Case Review by Dr Carla Dorsey, Tim Dorsey, Terry McGovern
Published by University of South Florida Muma Case Review
On October 8, 2018, Glenn Peterson, President of Primo Flight Parts, Inc. (PFP), faced an important deadline: In one week, he needed to finalize his 2019 proposed budget so that supporting materials could be assembled and sent to the Board of Directors in advance of its October 23 meeting, when (he hoped) the budget would be approved. With a projected 30% increase in sales for 2019, Peterson was shocked to see a request for a 40% staff increase. “Why do we need 40% more people to generate 30% more sales?” Peterson asked himself at the time.