Question 1 – Outline the management control system at Xerox. What are the key elements that make the system work? There are two eras that we are going to analyse; the first one being before the 1970s and the second era started in 1980s. Since the start of the Company until 1970, the goal of the Company was to expand rapidly and to attain market share. The management operated the Company according to this business plan with a weak management control system. The Company had a rigid; long; bureaucratic; and inconsistent corporate reporting and planning process. In-consistent and unnecessary data also resulted to difficulty for the management to analyse and make decision for the benefit of the Company. Element such as human resource management was neglected and that resulted to good employee left the company. In the 1980, the Company formulated different strategy in response to the emerging of competitor since the expiry of the original pattern in the 1970. The threats were in the form market share battle and product pricing battle. Xerox developed a corporate revitalization plan called “Leadership through Quality” (built upon competitive benchmarking and employee involvement) which served as the cornerstone of the new Xerox culture. Financial Executive Council (FEC) was evolved, in parallel with LTQ, in response to financial emphasis on management decisions at the operating units. The Company improved its management information system; standardized its reporting system; promoted openness and trust communication and sharing accountability and responsibility amongst the employees. With this system, on-time and accuracy data was produced for current and future analysis. Key elements that derived success are mentioned above and listed below in point form: •
Commitment of Management to revise strategy and entrust the employees in the implementation, planning and control •
Encourage an open; informal and regular communication/meeting amongst the employee for better...
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