Essay on Tareas Itesm
SEPTEMBER 28, 2012
JULIE H. HERTENSTEIN
Danshui Plant No. 2
In August 2010, Wentao Chen, manager of Danshui Plant No. 2 in southern China, was anxious.
The plant was in the third month of a 12-month contract to assemble the Apple iPhone 4. The contract
called for Danshui to assemble 2.4 million iPhones in the period between June 1, 2010, and May 31,
2011, but now in the third month of the contract, production was only 180,000 units per month. Chen
called Jianye Ma, the plant controller, to request a summary of monthly operations for August as
soon after the end of the month as possible.
Danshui was a contract manufacturer that assembled electronic products …show more content…
budget was established soon after the iPhone contract was signed. This budget was divided by 12 to
establish equal monthly budgets to which actual revenues and expenses could be compared. All
budgeting and monthly reporting was done in U.S. dollars.
Professor Emeritus William J. Bruns of the Harvard Business School and Associate Professor Julie H. Hertenstein and Assistant Professor Kelvin
Liu of Northeastern University prepared this case solely as a basis for class discussion and not as an endorsement, a source of primary data, or an
illustration of effective or ineffective management. Despite occasional references to actual companies, this case is fictitious and any resemblance
to actual persons or entities is coincidental.
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This document is authorized for use only by Carla Fern?ndez in Managerial Accounting at ITESM taught by Wright, ITESM from September 2015 to March 2016.…