Score Balance
Essay by habib_rahman • December 26, 2011 • Book/Movie Report • 1,921 Words (8 Pages) • 6,642 Views
Contents
Case Studies:
Chapter-6
Case: 6-5(Medoc Company)
Chapter-7
Case: 7-5(dell Computer Corporation)
Chapter-8
Case: 8-2(Copley manufacturing Company)
Chapter-9
Case: 9-3(Montvale Corporation and Riverview)
Chapter-10
Case: 10-2 (Solartronics, Inc.)
Balanced Scorecard Basics
The Balanced Scorecard Measurement of
DEPARTMENT OF ENERGY
FEDERAL PROCUREMENT SYSTEM
Case Studies:
Chapter-6
Case: 6-5(Medoc Company)
Question1: What would you recommend given the organizational structure constrains in the case?
Answer: I recommend to solve the organizational structure constrains that the transfer price should consist of two elements (a)a standard monthly charge representing the consumer products division's fair share of the nonvariable overhead plus(b) a per-unit charge equivalent to the actual material, labor, and variable overhead costs applied to each unit billed. Investment should no longer be allocated to the consumer products division. Instead, a standard profit would be included in computing the fixed monthly charge.
Question2: What would you recommend if there were no organizational structure constrains on your options?
Answer: I recommend if there were no organizational structure constrains on my options that the selected policy should be implemented-specifically, the degree of negotiation allowed in setting transfer price, methods of resolving transfer pricing conflicts, and classification of products according to the appropriate method.
Chapter-7
Case: 7-5(dell Computer Corporation)
Question1: What is Dell's strategy? What is the basis on which dell builds its competitive advantage?
Answer: Dell's climb to market leadership was the result of a persistent focus on delivering the best possible customer experience of its strategy. On the other hand, Dell could best understand consumer need and efficiently provide the most effective computing solutions to meet those needs by selling computer system directly to customers. This direct business eliminated retailers, who added unnecessary time and cost, and also allowed the company to build every system to order, offering customers powerful, and richly configured system at competitive price.
Question2: How do Dell's control systems help execute the firm's strategy?
Answer: Turning Michael Dell's concept into reality meant rallying a large and dynamic organization around a common purpose and measuring its performance by relevant and concrete measurements (or matrices).In August 1993, Dell engaged Bain& Company, Inc..,a global business consultancy, to help it develop a set of matrices to judge business-unit performance. Michael Dell said "It was all about assigning responsibility and accountability to the manager... ".Dell recognized early the need for speed or velocity, quickening the pace at every steps of business. The company learned the more worker handled, touched, the products along the assembly process, the longer the process took and the greater the probability of quality concern.
Chapter-8
Case: 8-2(Copley manufacturing Company)
Question1: How do you appraise formal planning efforts at the Copley company?
Answer: The formal planning effort at the corporate level was an outgrowth of work initiated by Russell A.wild, in mid-1977.Mr.Wild has been head of precipitator division's commercial development department and. As such, has been deeply involved in the division's efforts beginning early in 1977 to "plan ahead" .Mr.Wilde's effort at the corporate level actually began as a search for companies to acquire, science Copley's top management saw the key question to be:"How should we diversify?"Within six month. Mr.Wild was arguing that the crucial questions to be asked really were:"What are our objectives?" and "What is our potential?".One result of the dialogue that followed was a request by Stanley Burton, president of Copley, for the divisions to look 10 years ahead and to predict sales, profit, cash flow, and return on investment.
Question2: What do you predict will occur with respect to formal planning at Copley?
Answer: My prediction is that the corporate planning is the major responsibility to top management .It involves the direction of the whole company in deciding specifically what business company wants to be in, in determining what rate of growth is desirable, in determining what method of growth is intended. Another assumption is there is a great tendency in American business to over manage, over plan, overstaff, and over organize, which is contributing in a major way to the company's declining ability to compete in world markets. Its fixed costs in staff and management are often a larger factor than factory labor in making them noncompetitive.
Question3: How would you handle formal planning at Copley?
Answer: Personally I try to follow the following steps:
The first step in the annual strategic planning process, therefore, is to review and update the strategic plan that was agreed to last year. Second step is the updated strategic plan incorporates broad assumptions as the growth in Gross Domestic Product, Cyclical movements ,labor rate, selling prices, market conditions such as the actions of competitors, and the impact of government legislation in each of the countries in which the company operates.
Chapter-9
Case: 9-3(Montvale Corporation and Riverview)
Question1: What should Johnson do?
Answer: Jerry Johnson, financial vice president of Montvale Corporation, made a three-day visit to Riverview, its newest retirement community. He also said
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