2) a) Overall evaluation of Abrams management control system: Discuss the pros and cons of the ROI measure at Abrams?
b) Strength and weakness of MCS not mentioned before:
c) Changes of MCS recommend to the top management:
Manufacture in automobile, trucks, buses, and farm equipment 3 major groups: ignition發火裝置, transmission, and engine parts 2 markets: OEMs and AM
4 divisions: 1 for AM, 3 for OEMs (ignition, transmission, and engine parts)
* AM expected to reach 50% of total sales
PLANTS and AM ROI
* Manufacturing plant: Target VS Actual ROI (incl. overhead exp and tax, reason: a. resemble to external financial report and b. manager has clear perspective of cost and contribution) * For b/f net asset: top management think investment in the current year will only increase for future profit but not the current year profit. Marketing Strategies
* OEMs sale department worked with OEM’s engineer for develop new product * Expected to meet sale target
* Customer different between OEM and AM, sales organization can't be combined, even inside OEM, it can't be combined. * 2 of 3 OEM divisions are independent before and have their own OEM marketing practice. * Abrams’ executive thinks of success: innovative to satisfy customers’ needed,...