Tgerm Paper
GALVOR COMPANY
Case Summary
Company Background
Galvor company is one of major French electric industry company which has main activity as fabricator (buy parts and assembly them into high quality, moderate-cost electric and electronic measuring and test equipment. Galvor Company is a family company founded by M. Georges Latour in 1946. Latour had always been personally involved in every detail of the firm’s operations as in most family businesses. Fiscal growth grew from $2.2 million in 1960 to $12 million in 1971. However, April 1, 1974, Galvor was sold to Universal Electric Company (UE), a large multinational organization with its European Head Quarters located in Geneva, Switzerland. The Company Head Quarter was located in the United States. Latour decided to sell Galvor to Universal Electric Company for $ 4.5 million of UE’s stock. Compare to UE Galvor’s total asset and revenues were quite small. Universal Electric Planning and Controlling System
Universal, which is a company headquartered in the United States, is a large major multinational company in electric industry. As it managed several business or operating units all around the world UE has comprehensive and uniform system for reporting and controlling its financial activities. The comprehensive system can be explained as follows: The Business Plan is a comprehensive documents made by Universal Electric’s operating unit (currently UE has about 300 operating unit in Europe). The Business Plan is used by UE as basis for developing its budget as well as measuring the performance of its operating units. Basically this business plan consists of 5 financial key elements: * Sales
* Net Income
* Total Assets
* Total Employees
* Capital Expenditures
It takes several months to develop this Business Plan. The schedule for preparing this Business Plan is explained in below figures. Period | Universal Electric (Geneva) | Galvor Company |
Case Summary
Company Background
Galvor company is one of major French electric industry company which has main activity as fabricator (buy parts and assembly them into high quality, moderate-cost electric and electronic measuring and test equipment. Galvor Company is a family company founded by M. Georges Latour in 1946. Latour had always been personally involved in every detail of the firm’s operations as in most family businesses. Fiscal growth grew from $2.2 million in 1960 to $12 million in 1971. However, April 1, 1974, Galvor was sold to Universal Electric Company (UE), a large multinational organization with its European Head Quarters located in Geneva, Switzerland. The Company Head Quarter was located in the United States. Latour decided to sell Galvor to Universal Electric Company for $ 4.5 million of UE’s stock. Compare to UE Galvor’s total asset and revenues were quite small. Universal Electric Planning and Controlling System
Universal, which is a company headquartered in the United States, is a large major multinational company in electric industry. As it managed several business or operating units all around the world UE has comprehensive and uniform system for reporting and controlling its financial activities. The comprehensive system can be explained as follows: The Business Plan is a comprehensive documents made by Universal Electric’s operating unit (currently UE has about 300 operating unit in Europe). The Business Plan is used by UE as basis for developing its budget as well as measuring the performance of its operating units. Basically this business plan consists of 5 financial key elements: * Sales
* Net Income
* Total Assets
* Total Employees
* Capital Expenditures
It takes several months to develop this Business Plan. The schedule for preparing this Business Plan is explained in below figures. Period | Universal Electric (Geneva) | Galvor Company |