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Magnus Holmström
Linkoping University
Case 4-6 Grand Jean Company
The Grand Jean case deals with management control of engineered expense
centers and revenue centers. I will focus on the management control
problem of the 25 production plants. The grand jean use a mix of financial
and non financial measures to evaluate the goals such as.
•
Corporate measurers: Profit, return on equity, customer satisfaction
index, price level, market share, employee welfare index, reliable
supplier, flexibility (TTM)
•
Marketing measures; revenues, market share, sales mix, price level,
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Production measures; Cost efficiency (std. cost), lead time, quality (no
of failures), employee satisfaction index, production benchmarks
(units/min, units/employee, waste, failure cost/unit etc.)
Management control of the production plants:
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Strengths: Clear assignment of responsibility. Relevant efficiency
measures (std cost & std time). Bonus system will support both
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- Summer '11
- Wain
- Economics, Marketing, non financial measures, production plants, grand jean company
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