Case Study 4.1 Vershire Company

Topics: Management, Planning, Control Pages: 2 (427 words) Published: November 2, 2011
Vershire Company was a diversified packaging company with several major divisions. In their organization chart, reporting to the divisional general manager were two line managers, vice president in charge of manufacturing and marketing division. These vice presidents headed all division’s activities in their respective functional area. The Aluminum Can – which was one of the largest manufacturers of aluminum beverage cans in the United States – division’s revenue was growing slightly faster than the industry average. However, most of its customers had several package suppliers to control the quality and price. To effectively compete with other suppliers and maximums its market share, company had implemented a rigid budgetary control system for both production and marketing departments.

1. Outline the strengths and weaknesses of Vershire Company’s planning and control system.

2. Trace the profit budgeting process at Vershire, starting in May and ending with the Board of Directors meeting in December. Be prepared to describe the activities that took place at each step of the process and present the rational of each.

3. Should the plant managers be held responsible for profits ? Explain !

4. How do you assess the performance evaluation system contained in exhibit 2 and 3 ?

5. On balance, would you re–design the management control structure at Vershire Company ?


1.The planning and control system also presents several strength and weaknesses which are going to be explained in the following paragraph:

Strengths of the planning system:
  * Divisional managers are required to predict market conditions and capital expenditures five years in advance and prepare a forecast for the subsequent two years. This is a good way for the divisions and the company as a whole to anticipate sales, income, and capital requirements that are necessary to make future decisions and remain competitive.   * After the...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Case Study 4.1 Vershire Company Essay
  • Jollibee Company Case Study Essay
  • case study Essay
  • Case study on electronic company Essay
  • Rendell Company Case Study Essay
  • A Case Study on Dell Company Essay
  • Case Study on Tucker Company Essay
  • Bisctuit Company Case Study Essay

Become a StudyMode Member

Sign Up - It's Free