Q1. How would you describe the goals of:
(a). The company as a whole.
The goals of the company as a whole means the broad, usually non-quantitative, long run plans relating to organization. As we know, Grand Jean Company has been one of the world’s largest clothing manufacturers, which means it is at a relatively mature stage with variety lines of dress and jeans for men, women and boys. Therefore, according to the BCG Model, described the Business Unite Missions, the company’s strategic goal should be “Hold” in the long run. And in order to achieve the goal, the company should maintain the high standard in growth rate, cash source, market share and cash use. Meanwhile, Grand Jean should be stated as “Harvest” right now, in terms of the stable growth rate but not high by now.
(b). The company’s 25 managers of manufacturing plants
The objectives of the company’s 25 managers of manufacturing plants, however, are more specific, often quantitative, shorter run plans for individual responsibility centers. The company treats the 25 plants as expense centers whose inputs are measured in monetary terms, but whose outputs are not. And the manufacturing plants are part of engineered centers, which relate to engineered costs. Since the outputs can be measured in physical terms, and the optimum dollar amount of input required to producing one unit of output can be determined. In this way, their objective is to put one plant to work for a whole year on one type of pants. So that they can save start-up costs and keep the plants at peak efficiency.
(c). The company’s marketing organization.
Meanwhile, the five marketing departments of marketing are treated as revenue centers, whose output is measured in monetary terms, but no formal attempt is made to relate input. Because the performance of marketing department managers is measured on the basis of meeting these targets, so the objectives for the normal sales force should be earning as much as commissions, which represents a major part of their compensation.
Q2. Identify and evaluate the strengths and weaknesses of the current management planning and control system for the manufacturing plants and the marketing departments.
(a). Manufacturing Plants:
They make the plant budgeting to determining what a plant’s quota for each month should be for one year ahead of time. And they also check the plant’s past performance to expect the improvements. And they compare the standard labor hours with the actual one to determine the efficiency index and how the manager performed as an expense center. And the bonus system also contribute to stimulate the employees productivity using the performance scale tiling the bonus rate.
According to the statement of Mia Packard. There are number of plant managers was hide some of the pants produced over quota privately, so that they can protect himself against future production deficiencies, using the goods hidden before, to maintain a stable and good performance over the year. Moreover, the lack of immediate and effective monetary rewards also cause the less intention of managers to pushing for maximum production. Besides, some of the plants have been built within the last five yeas facilitate with many new equipment, however, there is no difference between the standard hours determined in the old ones and these plants. This kind of assessment system is not suitable for two different levels equipment at the same time.
(b). Marketing Plants:
They keep changing in product mix to meet changing consumer demand. To meet more efficiency marketing output, they trained their sales well, so that the sales force can sells all types of jeans within an assigned territory. And the marketing department also participated in the company’s bonus system, therefore sharing the same opportunities. All of the above measurements enhance the inter-departments competitiveness.
The top management elevated the supervision ratio of 11:1 to some sort of sacred index of leadership efficiency. As a result, the managers usually understaff their officers. Further more, because of this, they cannot get timely and accurate reports from plants. There aren’t enough people in the offices out there to generate the information we desperately need when people need it.