Xerox Case
INTRODUCTION
Xerox is a multinational corporation serving the global document-processing and financial services market. The business revolves in over 130 countries by its developed, manufactured and marketed copiers, duplicators, facsimile products, scanners and other products. Xerox case study center on the document-processing activities of the company. The case discuss on the management control system and its trends that helps Xerox to overcome its obstacle s in maintaining its market share. It also looks on how Xerox have become today and are they still using the same management control system or not.
PROBLEM STATEMENT
During 1970 till 1980, several problems have occurred in Xerox due to lack of appropriate management control system. The issue started when a patent for the plain paper copier have expired, thus inviting new entrant. Xerox market share dropped from 96 percent to 45 percent due to the attack of competitors that had offered a low price. The Japanese firms were selling their product at Xerox’s manufacturing cost. Next is in 1970s, Xerox emphasize on the important of accuracy and rigid system than listening to the customers.
SOLUTION
The first question asked was to outline the management control system at Xerox and identify the key elements that make the system work. Based Xerox case study, prior to 1970 the management control is influenced by the analytical era where it highlights accuracy and rigid systems more than listening to the customer. At that time the company set unrealistic target, use the number of people as the controller and inadequate data analysis. Besides that, the reporting and planning process was too long and the structure is more bureaucratic and the reporting formats were not even consistent between divisions. There are few issues that arise during 1970 until 1980. First is the original patent for the plain paper copier expired that lead to new entrants enter the market. Xerox market share decrease due to
Xerox is a multinational corporation serving the global document-processing and financial services market. The business revolves in over 130 countries by its developed, manufactured and marketed copiers, duplicators, facsimile products, scanners and other products. Xerox case study center on the document-processing activities of the company. The case discuss on the management control system and its trends that helps Xerox to overcome its obstacle s in maintaining its market share. It also looks on how Xerox have become today and are they still using the same management control system or not.
PROBLEM STATEMENT
During 1970 till 1980, several problems have occurred in Xerox due to lack of appropriate management control system. The issue started when a patent for the plain paper copier have expired, thus inviting new entrant. Xerox market share dropped from 96 percent to 45 percent due to the attack of competitors that had offered a low price. The Japanese firms were selling their product at Xerox’s manufacturing cost. Next is in 1970s, Xerox emphasize on the important of accuracy and rigid system than listening to the customers.
SOLUTION
The first question asked was to outline the management control system at Xerox and identify the key elements that make the system work. Based Xerox case study, prior to 1970 the management control is influenced by the analytical era where it highlights accuracy and rigid systems more than listening to the customer. At that time the company set unrealistic target, use the number of people as the controller and inadequate data analysis. Besides that, the reporting and planning process was too long and the structure is more bureaucratic and the reporting formats were not even consistent between divisions. There are few issues that arise during 1970 until 1980. First is the original patent for the plain paper copier expired that lead to new entrants enter the market. Xerox market share decrease due to
References: Hilton R.W, Platt Managerial Accounting. International Edition, McGraw Hill 9th Edition http://www.knowledgebank.irri.org/economics/index.php/the-role-of-accounting http://college.cengage.com/accounting/ansari/management/1e/students/modules/mod11.pdf http://www.managementstudyguide.com http://en.wikipedia.org/wiki/Xerox . 6