Planning and control decisions, Internet company. WebNews.com offers its subscribers several services, such as an annotated TV guide and local-area information on weather, restaurants, and movie theaters. Its main revenue sources are fees for banner advertisements and fees from subscribers. Recent data are as follows:
|
Month/Year
|
Advertising Revenues
|
Actual Number of Subscribers
|
Monthly Fee Per Subscriber
|
|
June 2009
|
$ 415,972
|
29,745
|
$15.50
|
|
December 2009
|
867,246
|
55,223
|
20.50
|
|
June 2010
|
892,134
|
59,641
|
20.50
|
|
December 2010
|
1,517,950
|
87,674
|
20.50
|
|
June 2011
|
2,976,538
|
147,921
|
20.50
|
The following decisions were made from June through October 2011:
a. June 2011: Raised subscription fee to $25.50 per month from July 2011 onward. The budgeted number of subscribers for this monthly fee is shown in the following table.
b. June 2011: Informed existing subscribers that from July onward, monthly fee would be $25.50.
c. July 2011: Offered e-mail service to subscribers and upgraded other online services.
d. October 2011: Dismissed the vice president of marketing after significant slowdown in subscribers and subscription revenues, based on July through September 2011 data in the following table.
e. October 2011: Reduced subscription fee to $22.50 per month from November 2011 onward.
Results for July–September 2011 are as follows:
|
Month/Year
|
Budgeted Number of Subscribers
|
Actual Number of Subscribers
|
Monthly Fee per Subscriber
|
|
July 2011
|
145,000
|
129,250
|
$25.50
|
|
August 2011
|
155,000
|
142,726
|
25.50
|
|
September 2011
|
165,000
|
145,643
|
25.50
|
1. Classify each of the decisions (a–e) as a planning or a control decision.
2. Give two examples of other planning decisions and two examples of other control decisions.