Irizar Case
THE SUCCESS IN
Norwegian School of Management: Management Control
Lecturer: Hanno Roberts
Authors: Aqsa Butt Assad Hafeez Elisabeth Harvei Eric Osei Torje Fjotland
Executive Summary
IRIZAR is a luxury coach builder and a part of large Co-operative Corporation (MCC) with share holdings in five other countries. It went through crisis in the 1990s as a result of changes in internal and external environments. To survive in the crisis and regain competitiveness in the market place, Mr. Saratxaga was appointed as the new leader of the company. He made revolutionary changes (i.e. change in mission and business model through participatory management) and was able to achieve trajectory growth rate in sales and expansion into other countries.
The key elements of Irizar’s business model included: flat organization (with decentralized autonomy of responsibility and control of own goals), value proposition (i.e. how value was delivered through human resources structure and its value networks), Target market segment (i.e. focused on luxury coaches in premium market), values chain activities (i.e. inter-play of interaction and communication between employees, teams, customers and suppliers in service delivery), Partner Networks (i.e. communication and distribution channels in the network) and Core competencies (i.e. leadership skills, recruitment process and incentive system).
The features interconnect to create a network focused on building capacity for innovation, which created long term learning for Irizar.
For Irizar to sustain the business model for long term growth however, it needs to make some choices. For example, they should implement control systems e.g. accounting controls and object controls like personnel controls, action controls and cultural controls for proper allocation of resources and responsibilities, and also steer the direction of the company towards its goals. Other
Norwegian School of Management: Management Control
Lecturer: Hanno Roberts
Authors: Aqsa Butt Assad Hafeez Elisabeth Harvei Eric Osei Torje Fjotland
Executive Summary
IRIZAR is a luxury coach builder and a part of large Co-operative Corporation (MCC) with share holdings in five other countries. It went through crisis in the 1990s as a result of changes in internal and external environments. To survive in the crisis and regain competitiveness in the market place, Mr. Saratxaga was appointed as the new leader of the company. He made revolutionary changes (i.e. change in mission and business model through participatory management) and was able to achieve trajectory growth rate in sales and expansion into other countries.
The key elements of Irizar’s business model included: flat organization (with decentralized autonomy of responsibility and control of own goals), value proposition (i.e. how value was delivered through human resources structure and its value networks), Target market segment (i.e. focused on luxury coaches in premium market), values chain activities (i.e. inter-play of interaction and communication between employees, teams, customers and suppliers in service delivery), Partner Networks (i.e. communication and distribution channels in the network) and Core competencies (i.e. leadership skills, recruitment process and incentive system).
The features interconnect to create a network focused on building capacity for innovation, which created long term learning for Irizar.
For Irizar to sustain the business model for long term growth however, it needs to make some choices. For example, they should implement control systems e.g. accounting controls and object controls like personnel controls, action controls and cultural controls for proper allocation of resources and responsibilities, and also steer the direction of the company towards its goals. Other
References: 1. Prof. Hanno Roberts (2007) Lecture Notes, MBA Norwegian School of Management 2. Responsibility Accounting, Cost Control and Environmental Costs (Chapter 12), McGraw Hill/Irwin[2004], Slide presentation 3. F.J. Forcadell and F. Guadamillas, Knowledge and Process Management, (May 2007). 4. Business Model Design and Innovation, < www.business-model-design.blogspot.com> [November 05, 2005] 5. K. M Telleria, D. Little and J. MacBryde, Managing processes through teamwork, Centre for Strategic Manufacturing, DMEM, University of Strathclyde. Glasgow UK, < www.emeraldinsight.com/researchresgisters.com > [2007] [pic] ----------------------- [1] Source: Knowledge and Process Management, www.interscience.wiley.com (May 8, 2007). See diagram in question 3 on interconnectivity of features of Irizar’ Business Model