Mti Cash Budgeting In Times Of Sharp Business Downturn Harvard Case Solution & Analysis


            If the normal cycles of a business of any company in the world are going down then the companies could open up new companies, new products and also introduce new product lines. After the 9/11 attacks the business of MTI is usually going down unlike operating like a normal cycle of business. The company has found out that its customers are not able to spend a considerable time over the surveys as the company is a primary market research firm.

            This is because the mental state and the mental response of the employees is not the same as compared to the response of the customers at times of the normal business cycle. In simple ways, the way the business would be conducted after the 9/11 should be told to the clients and it should be told to the customers or the clients that the research results might be different after the 9/11 attacks.

             If we look at the example of Aaron then it could be seen that her spirit was exactly the same of as Bill Young and they both thought that the employees were the true assets of the organization and rather than laying them off the company should consider to start with the cash budget. If we look into the case, then it could be seen that he thought about good of the employees and he was to announce the bankruptcy however, there was no justification by which he could put 3000 people on the roads.

            If I would be at his place I would have decided to cut the number of the hours to be worked on similar assignments rather than 3000 people to maintain the company. In this way each and every employee of the company would get a living income and they could all pay their expenses. If they do not like it, then they could be satisfied through the compensation.


            Employees are an asset of every organization and there should not be a single step that should be taken which dissatisfies the employees of the organization. If a financial crisis occurs and there are problems being faced by the company or the future survival of the company becomes uncertain then all the information should be surely communicated to the employees of the organization.

Mti Cash Budgeting In Times Of Sharp Business Downturn Case Solution

            Communication is the best method of resolving such big issues. These problems should be solved with mutual understanding between the interests of the management and the interests of the labor. However, one thing should be noted here which is that all the employees should be communicated about the financial problems yet to come but the right time for the communication should be chosen.

            Since, this is an era of the digital world and the financial information is readily available via the internet, therefore with the increased mobility of the internet. Therefore, it is critical that the management of all the companies should keep their employees informed proactively about the financial information about the company. Along with this, most of the employees in companies today are also the shareholders themselves and they have a vested interest over the earnings of the corporation.

            Despite, this it is essentially important that the employees of any organization understand the linkage between their individual performance and the performance of their company so that they could know what the means to ends are. However, in this case the financial condition of the company is worsening, therefore, it is more important to inform all the employees about the business situation and also tell them about the future restructuring plans along with the potential impacts upon their salaries and jobs.

            Further, all the decisions that need to be taken should be taken with the mutual consent of all the employees of the organization. It is unethical if the employees of the organization are not given complete information regarding the financial situation of the company. Therefore, in order to keep the image of the company clear, it is advisable for the companies to maintain their strong image by communicating each and everything not only to the employees but other significant stakeholders also.


            First of all the request of the director of marketing should be accepted by the company and steps should be taken to talk with the client and convince the client. The client should be communicated about the entire situation in a professional manner and he should be made sure that all of his work would be completed on time with the best of the quality possible...................

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