Accounting Text and Cases 12 Ed. Chapter 28

Axeon nv case study solution. Axeon NV case analysis by Cong Sheng on Prezi

It therefore seems quite a stretch to imagine that the inexperienced U. However, no provisions are made for payment on the loan principal in the NPV calculation. When analyzing the underlying elements, it is apparent that the Company's performance control system was counterproductive, causing subsidiaries to compete with one another, as if they were outside competition. Furthermore, the AR factory in the Netherlands could manufacture the tons that the U. The following management report describes and analyses those problems and presents solutions and recommendations.

Contents

Formal strategy: Takamatsu thinks that Ms. Subsidiaries are allowed to determine their own product mix, propose new products and the setup of new manufacturing plants, how to make a comparison essay they can justify the investment in their own market. Axeon should be coherent between the definition and the real implementation of its strategy in terms of centralization. Giving autonomy to subsidiaries: The salary of the managers depends on the subsidiaries profit The subsidiaries can produce the product that they deemed appropriated.

Situational Analysis The conflict presented in this case is caused by the fact that the Company has grown from being a small, simple operation, into a complex multinational, without ever implementing proper strategic control and performance evaluation systems. AR should be supplied from Netherlands with negotiated transfer price.

AXEON N.V CASE STUDY

High degree of decentralisation and autonomy in decision-making. With headquarters in the Netherlands, Axeon N.

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Two opposite clans with different interests, different power and different influence: Based on this, the proposal to set up AR manufacturing facilities in the U. About the Company Axeon N.

Case Analysis : ' A Case

The subsidiaries have considerable autonomy to determine their product mix and the setup of new manufacturing facilities. This case focuses on how Toyota as a vehicle manufacturer is looking to get more people to migrate from gas powered vehicles to environment friendly hybrid car variety.

In order to prevent situations similar to the one presented in this case, it must be recognized that the main goal is to optimize shareholders returns. To propose the development of new products and build their own manufacturing plants.

Negotiating with the subsidiaries for selling Axeon products. The proposal's plant depreciation is to fast. An example of a system that is aimed at this is the balanced scorecard. What do you feel about the initial analysis? Use of external knowledge by acquiring axeon nv case study solution companies in different regions.

Have a centralized process concerning the approval of projects.

AXEON N.V. BEHAVIOURAL MANAGEMENT CONTROL Group C4: Anat Bar Pinchas

Satish Reddy, the chairman of Dr. Headquartered in Heerlen the Netherlands. It therefore seems quite a stretch to imagine that the inexperienced U. Scandinavia and Southern Europe. Takamatsu gets Mr.

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Managers can propose development new product and possible build their own manufacturing plants. Achieve higher integration.

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The type of court involved depends on the case presented. The counselor diagnosed the client with an adjustment disorder with depressed mood and the client will be seeing for the next 6 months.

Case Analysis : Court Case

The subsidiaries are responsible for sales in the U. Having high degree of decentralization.

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The U. Why did Mr Van Leuven behave as he did? Should design Reward system for subsidiary management executives according to market share responsibility even though the product is produced at Axeon.

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Products manufactured by one subsidiary are sold to other subsidiaries at the same price as to agents. Presentation on theme: Assessment of new project proposals. To bargain and reject products.

In some cases, the subsidiaries manufacture products that compete with those produced by Axeon's factories in the Netherlands and little attempt has been made to rationalize the production.

Axeon Case Analysis - Words | Bartleby

The case looks at the automobile market and specifically the hybrid and fuel cell category market in great detail. These defects have led the Company to reward subsidiary managers for focusing solely on their subsidiaries short-term revenue and profit but not for contributing to the long-term optimization of shareholder returns. Review the strategy in terms of autonomy, encouraging subsidiaries to propose new projects and the development of new products but centralizing the final approval of proposal.

Discuss what transfer price sould be established if AR is supplied from the Netherlands to the UK? Although Mr. Hiring people with high expertise and experience. Different independent subsidiaries Decentralised organisation Results controls Objectives settled Bonus plan providing rewards Action controls Action Accountability Preaction reviews Personnel controls Empowerment of the subsidiaries and his employees Selects and places competent employees Train employees 8 Q6.

What do you believe are the key recurring activities in Axeon? Since the plans indicated that the endeavor was profitable, the plan was accepted and subsequently presented to the board of Axeon in the Netherlands that axeon nv case study solution unanimously to allow construction of the plant. Due to the geographic proximity, transportation would be a non-critical factor.

A straight-line annual depreciation should equal: The manufacturing could take place in the Netherlands without any further capital investment. The forecast therefore ignores Relevant Outflow; i. Lack of information about capacities and costs that took time for evaluation of the project.

Axeon NV case analysis by Cong Sheng on Prezi

Motivated, innovative Investment justified Confidence in Mr Van Leuven Not yet competent on the product They want axeon nv case study solution proposal to be executed Competition and no communication between the two parts Influence problems Profit or decentralized management?

Detailed Analysis: Case Analysis: The claim that the subsidiary had designed new technology to store and apply the chemical could however be a proper rationalization for this optimistic forecast. If the U. What do you believe to be the CSF in Axeon? Since the tax shield effect of interests are accounted for in the required rate of return it does not need to be accounted for in the NPV.

This dramatically lowers the projects NPV. However, whereas the U. Reddy Laboratories Ltd.

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With headquarters in the Netherlands, Axeon N. In other words: To prevent issues like this, it must be realized that Axeon's problems are a result of a lack of proper performance measurement systems and inadequate strategic control.

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Incoherence with strategy of decentralization. Integration of operations. This report recommends rejection of the above mentioned proposal and that Axeon implements effective performance management systems to ensure congruency of management and Company goals.

After reviewing the arguments set forth, it is clear that the U. Is the construction of the new factory in the UK in the best interest of Axeon? Never the less, this only means that the U. What could Mazda learn from eye-tracking software that would be difficult to learn?

Two possible options: The Company emphasizes decentralization, allowing subsidiary managers considerable autonomy regarding what products to sell in their territories. New technology is not revenue model essay. Lack of motivation and morale of subsidiary management.

Queen Beatrix of the Netherlands in Vries Extensive product range. Extensive product line of industrial chemicals. As a licensed counselor, you are seeing a client that is self-employed electrician.

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Subsidiaries in three countries: June West is the new and very ambitious manager. The Company was rewarding A when wanting B. Sammanlagt innehar de 24 olika fabriker som producerar varor inom kemikalie-industrin. OpenStreetMap Logo English: Scandinavia and Southern Europe.