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GrandjeanAG4-6 - Magnus Holmstrm Linkoping University Case...

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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, 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: Strengths: Clear assignment of responsibility. Relevant efficiency measures (std cost & std time). Bonus system will support both
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