Stewart Box Company
Stewart Box Company
Executive Summary:
The management control systems and organization structure should support the overall corporate strategy for the effective and efficient accomplishment of its goal. This is the essence of the Stewart Box Company or SBC case.
SBC was a well-established manufacturer of paperboard cartons and boxes. These were sold as packages for consumer products. SBC's main strategy was to produce high quality products primarily by designing to customer specifications and provide excellent customer service mainly by delivering at scheduled dates. This strategy was meant to adequately meet the strong competition in its industry due potential overall capacity in most plants. Competition for large orders was very keen and price cutting was commonly resorted to.
A closer review was done on their current control systems in relation to the strategies that the company has in place. The company mainly employs a strategy of focusing on product quality and probably prompt and reliable delivery as manifested by its reputation on costumer service; hence the control systems are geared towards this. This strategy of course is important in identifying the direction of the control systems that the company has in place. It is also an important tool in identifying areas in the present control system that needs improvement. Thus, a closer analysis on the current control systems per division was made in identifying issues that must be addressed by the company. Suggestions were given in order to improve these areas, and consequently how they can be better made to fit and apply the company's current strategy.
Case Context:
SBC was a well-established packaging company that manufactured both paperboard cartons and boxes. The paperboard and carton industry where it belonged was characterized by strong competition among companies due to potential overcapacity of most plants. Competitors were keen on getting large orders. Most industry players
Executive Summary:
The management control systems and organization structure should support the overall corporate strategy for the effective and efficient accomplishment of its goal. This is the essence of the Stewart Box Company or SBC case.
SBC was a well-established manufacturer of paperboard cartons and boxes. These were sold as packages for consumer products. SBC's main strategy was to produce high quality products primarily by designing to customer specifications and provide excellent customer service mainly by delivering at scheduled dates. This strategy was meant to adequately meet the strong competition in its industry due potential overall capacity in most plants. Competition for large orders was very keen and price cutting was commonly resorted to.
A closer review was done on their current control systems in relation to the strategies that the company has in place. The company mainly employs a strategy of focusing on product quality and probably prompt and reliable delivery as manifested by its reputation on costumer service; hence the control systems are geared towards this. This strategy of course is important in identifying the direction of the control systems that the company has in place. It is also an important tool in identifying areas in the present control system that needs improvement. Thus, a closer analysis on the current control systems per division was made in identifying issues that must be addressed by the company. Suggestions were given in order to improve these areas, and consequently how they can be better made to fit and apply the company's current strategy.
Case Context:
SBC was a well-established packaging company that manufactured both paperboard cartons and boxes. The paperboard and carton industry where it belonged was characterized by strong competition among companies due to potential overcapacity of most plants. Competitors were keen on getting large orders. Most industry players