Grand Jean Case study
Case 4-6 Grand Jean Company
1. How would you describe the goals of the company as a whole? Is this, or are these, the same as the goals of the company’s marketing organization and the company’s 25 managers of manufacturing plants? Explain.
Corporate – Generate profits, earn satisfactory rate of return investment, meet customers’ needs, maintain price and quality, grow or maintain market share, promote employee welfare & community relations, maintain loyal and reliable suppliers to supplement internal capacity and provide stability to product demand allowing internal flexibility to change product mix to meet short term market variations.
Internal Mfg. Plants – Maintain cost efficient operations, meet market demands, maintain reliable and quality standards , keep employees happy and good community relations. Compare to most efficient outside suppliers.
Marketing – Maximize sales revenue, maintain market share, sales mix, and price effectiveness.
2. Evaluate the current management planning and control system for manufacturing plants and marketing departments. What are the strengths and weaknesses?
Strengths – Clear assignment of responsibility of sales revenue/marketing and manufacturing output/costs; encourages product development and awareness of customer needs; integrated budget with monthly revisions to reflect market changes; realistic and timely standards for productivity assessment and cost control; reasonably clear and objective measures of performance; timely feedback on plant performance; internal production flexibility to meet changing market demand.
Weaknesses – No clear statement of corporate goals and objectives; consistently failing to meet customer demand; top down setting of plant targets with no plant manager participation; emphasis on monthly quotas leads to manipulation of output reporting; lost sales and profits; production schedule changes increase costs; corporate staff receive higher rewards than plant managers; VP
1. How would you describe the goals of the company as a whole? Is this, or are these, the same as the goals of the company’s marketing organization and the company’s 25 managers of manufacturing plants? Explain.
Corporate – Generate profits, earn satisfactory rate of return investment, meet customers’ needs, maintain price and quality, grow or maintain market share, promote employee welfare & community relations, maintain loyal and reliable suppliers to supplement internal capacity and provide stability to product demand allowing internal flexibility to change product mix to meet short term market variations.
Internal Mfg. Plants – Maintain cost efficient operations, meet market demands, maintain reliable and quality standards , keep employees happy and good community relations. Compare to most efficient outside suppliers.
Marketing – Maximize sales revenue, maintain market share, sales mix, and price effectiveness.
2. Evaluate the current management planning and control system for manufacturing plants and marketing departments. What are the strengths and weaknesses?
Strengths – Clear assignment of responsibility of sales revenue/marketing and manufacturing output/costs; encourages product development and awareness of customer needs; integrated budget with monthly revisions to reflect market changes; realistic and timely standards for productivity assessment and cost control; reasonably clear and objective measures of performance; timely feedback on plant performance; internal production flexibility to meet changing market demand.
Weaknesses – No clear statement of corporate goals and objectives; consistently failing to meet customer demand; top down setting of plant targets with no plant manager participation; emphasis on monthly quotas leads to manipulation of output reporting; lost sales and profits; production schedule changes increase costs; corporate staff receive higher rewards than plant managers; VP