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Toronto Mep Essay

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Case Study 2. Toronto MEP

1. Toronto MEP has performed extra work for clients for the same money and have not been financially escalating because of that. Also, the three divisions, performing at different revenues, has pushed one of the partners to think about a revenue based profit sharing instead of equal division.

2. HVAC division has had the best financial performance yielding to the fact that the Return on Investment (ROI) being 40 percent.

3. Firstly, the budgeting process has a foundational error because the initial budget was made on a gut feeling. Moreover, the subsequent budgets have been allocated based on the first budget. I would suggest them to prepare a budget based on the previous year’s performance of the company and also …show more content…
Harry assumes his people are poor planners, whereas he does not realize that he forces his instructions on them when they are ready to plan. Moreover, Harry believes his business to be smooth since his revenue is high and the clients are happy. Finally, Harry, not being updated with technology, argues with his clients, the necessity of technology.

3. The owner’s checks which have been coming in on time have kept Harry’s business running.

4. Firstly, Harry has been committing extra resources to complete projects on time. Secondly, he has been paying his employees in excess of the market rate to keep them with his company. Thirdly, he has not been paying attention to the CFO’s warning of the ROI getting weaker by the day. Lastly, in spite of these difficulties, Harry has been interested in expanding his business into other states.

5. The paramount factor for me, if I were a subcontractor would be to be in business. Harry has been loyal with his subcontractors, hence I would give him the required time to overcome his financial crunch. Though, I have been dictated at, certain times and have been forced to commit extra resources, I would want to continue the existing business relationship I am having with Superior Builders and

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