Case 1 Xerox
Case 1 Xerox
Case 1 Xerox
Question 1 : Outline the management control system at Xerox. What are the key
elements that make the system work?
Xerox Corporation had gone through two different era in their management control
system which are the analytical era of the 1970s and after the quality cultural revolution
of the 1980s.
- During 1970s :
Accuracy and rigid systems were more important than listening to the customer
Too many controllers will make inadequate decision making process and
bureaucratic.
There was never enough data or analysis that make reporting and planning process
was very long and inaccurate.
- After revolution of 1980s :
Leadership through quality is the main management control system. Quality is a
strategic tool use to improve competitiveness and organizational effectiveness at
Xerox.
Competitive benchmarking enable Xerox identify the company that they believe to
be the best managed in the industry and use numbers from that company, either with
cooperation of that company or from published material as a basis of comparison.
Financial Executive Council(FEC) is the central focal point for the finance function
at Xerox. FEC had contributed in the formulation of management decision at the
operating unit which added more value to the management process and they set the
course for becoming a world class financial operation.
Proper goal setting - each operating unit had a set custom-designed targets.
Question 2 : What recent trends at Xerox do you see influencing the management
control process?
There are several trends that have influenced the management control process in Xerox
Corporation :
Worldwide business network had make Xerox growth rapidly as possible.
Multinational corporation serving.
Find foreign partner who offered immediate entry into oversees market.
Leasing contact rather than equipment sale.
Joint venture
Form a partnership.
Ownership structure varied based on the country and the local partner.