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Management Control Systems 4-6

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Management Control Systems 4-6
Management Control group 1 | Main Case Study 4-6 | Mini case study 5-2 | Tom Breteler – 930228 | Max Leigh Norman – 910904
Hanway Tran – 831226 16/11/2012 | |

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Main Case Study 4-6: Grand Jean Company

Introduction

This case study covers case 4-6 of ‘Management Control Systems’, written by Robert N. Anthony and Vijay Govindarajan (2007, 12th edition). The case discusses Grand Jean Company, a jeans manufacturing company, and describes several processes and issues in their organisation and management. In this report, we will we review and discuss the main problems that Grand Jean Company faces, analyse and propose solutions to these problems.

During the course of this report, we will often refer to theory from the aforementioned literature, as well as external sources where needed. Explanations of concepts, theories and jargon will be given where necessary, but references will be provided in the end of the report easy reference.

Lastly, we realise our solutions have their limitations and are unlikely to be implemented easily, or immediately effective. But we believe that our proposed changes will allow the company to reap the benefits from knowledge sharing and increased efficiency, as both plant managers and contractors can cooperate to find the best practice to accomplish their tasks at hand.

Background

Grand Jean is a clothing company with a long history, having been founded in the mid 18th century it has survived several great economic crises such as two world wars, the great depression in the late 1920s and the 1970s oil crisis. Having survived so many economic shocks and still be working as a profitable company, it is possible that this has caused top management in Grand Jean to believe that the business model they are employing is a sturdy model that always works. The scientific management model that was developed in the 1910s where cost efficiency and cost analysis was prevalent then; is something that we perceive is



Bibliography: Anthony, R. N. & Govindarajan, V. (2007). MANAGEMENT CONTROL SYSTEMS. 12th Edition. Net MBA website. [Online] Consulted on the 12-11-2012. URL: http://www.netmba.com/mgmt/scientific/ Appendix Proposal for new organisational structure for NCA.

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