C3 INSELInc
ACC 3511 Case #3
Case 3: INSEL INC
Insel Inc.
The controller of Insel's newly formed Motorised Integrated Circuit (MIC) Division, Mustapha
Bakri, sensed that he and his staff could play a significant part in determining the success of what promised to be an important new business. Not only was his division competing in a new and dynamic market with unique requirements but it also was radically changing the way in which it delivered its product. These circumstances led Mustapha to reassess the most basic issues involved in designing a management control system: What should be measured? How should it be measured? Who should measure it? and, For whom should it be measured?
The Company
Founded in 1968, Insel soon became widely known for its radios and other consumer electrical and electronic products. By the 1980’s, it sold semiconductor products, communications equipment, and components to consumers, industrial companies, and the military throughout the South East Asian region.
Headquartered in the Butterworth Industrial Zone, Penang, in 2007, Insel achieved over RM 5.5 billion in sales, employed over 99,000 people, and spent RM 411 million in research and development. It was one of the few Malaysian companies that marketed a wide range of electronic products, from highly sophisticated integrated circuits to consumer electronic products. Organization
The company was organized along product and technology lines. Each business unit was structured as a sector, group, or division, depending on size.
The Semiconductor Products Sector (SPS) was headquartered in Kulim, Kedah; sales in 2004 were over RM 2.2 billion, which was 39 percent of Insel’s net sales. The sector sold its products worldwide to original equipment manufacturers through its own sales force.
Semiconductor products were subject to rapid changes in technology. Accordingly, SPS maintained an extensive research and development program in advanced semiconductor technology. Formation of the MIC Division
In the
Case 3: INSEL INC
Insel Inc.
The controller of Insel's newly formed Motorised Integrated Circuit (MIC) Division, Mustapha
Bakri, sensed that he and his staff could play a significant part in determining the success of what promised to be an important new business. Not only was his division competing in a new and dynamic market with unique requirements but it also was radically changing the way in which it delivered its product. These circumstances led Mustapha to reassess the most basic issues involved in designing a management control system: What should be measured? How should it be measured? Who should measure it? and, For whom should it be measured?
The Company
Founded in 1968, Insel soon became widely known for its radios and other consumer electrical and electronic products. By the 1980’s, it sold semiconductor products, communications equipment, and components to consumers, industrial companies, and the military throughout the South East Asian region.
Headquartered in the Butterworth Industrial Zone, Penang, in 2007, Insel achieved over RM 5.5 billion in sales, employed over 99,000 people, and spent RM 411 million in research and development. It was one of the few Malaysian companies that marketed a wide range of electronic products, from highly sophisticated integrated circuits to consumer electronic products. Organization
The company was organized along product and technology lines. Each business unit was structured as a sector, group, or division, depending on size.
The Semiconductor Products Sector (SPS) was headquartered in Kulim, Kedah; sales in 2004 were over RM 2.2 billion, which was 39 percent of Insel’s net sales. The sector sold its products worldwide to original equipment manufacturers through its own sales force.
Semiconductor products were subject to rapid changes in technology. Accordingly, SPS maintained an extensive research and development program in advanced semiconductor technology. Formation of the MIC Division
In the