Problem:
1. 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:
The following decisions were made from June through October 2009:
a. June 2009: Raised subscription fee to $24.95 per month from July 2009 onward. The budgeted number of subscribers for this monthly fee is shown in the following table.
b. June 2009: Informed existing subscribers that from July onward, monthly fee would be $24.95.
c. July 2009: Offered e-mail service to subscribers and upgraded other online services.
d. October 2009: Dismissed the vice president of marketing after significant slowdown in subscribers and subscription revenues, based on July through September 2009 data in table below.
e. October 2009: Reduced subscription fee to $21.95 per month from November 2009 onward.
Results for July-September 2009 are:
1. Classify each of the decisions (a) to (e) as a planning or a control decision.
2. Give two examples of other planning decisions and two examples of other control decisions that may be made at WebNews.com.