Read the Harwood Medical Instruments PLC case starting on page 374 of your textbook and complete the following assignment. The case describes a company whose manager is concerned that the operating...

Assignment
Case Study- Harvard Medical Instruments
Ans1- The reason for making the modification by the management in the system for calculating the bonus is believed that the operating profit is not a good method that can be used to measure the financial performance in the short term. Operating profit only focuses on higher sales volume but as the company deals with medical products, and higher sales can be generated with better quality and good customer service. The requirement of high quality standards and customer satisfaction encouraged the management to shift the focus on aspects like customer satisfaction, quality production and reduction in scrap cost. All these measure will lead to effective and more efficient production and will help the company in capturing a bigger market share along with higher motivation for general managers. Shifting the bonus to these measures will result in improvement of overall performance of the company as the regional managers in their respective fields would be more motivated for the bonus over their...