Aloha Products Inc Essay

2759 words - 12 pages

Introduction
The purpose of our report is to provide our analysis, assessment, and recommendations related to Aloha Products (AP) and the current control systems for the manufacturing, marketing, and purchasing departments. Based on the case information, we believe the current implementation of measurements and controls do not best serve the current business strategy of AP. As a result, we have included recommended changes for the three departments that best align with AP’s business model and will create a more thorough and effective measurement for performance for each department and the firm as a whole.
The following subsections of this memo will consider the current situation, the ...view middle of the document...

The organizational health of AP is currently suffering due to a lack of communication across the firm. Given the current organizational structure, which will be discussed in the subsequent section, there isn’t a strong congruence between actual performance and measured performance, which creates frustration amongst manufacturing managers. Furthermore, the lack of interdepartmental communication hinders efficiency and has led to discrepancies between actual deliveries and current requirements. These discrepancies are handled through the spot market; a much more costly alternative. While it is certainly not one of the larger firms in the industry, considering AP’s revenues in 1994 ($150 M) were roughly equal to Philip Morris and P&G’s coffee advertising budgets, their profitability and success is dependent on the understanding of their role in the market and maximizing their margins. However, this initiative will be much more feasible with an organizational structure and controls that compliment an efficient strategy and promote communication between departments.

1.   Evaluate the current control systems for the manufacturing, marketing, and purchasing departments of AP

Controls are evaluated based on the three major departments of AP: manufacturing, purchasing and marketing (sales). Based on our analysis, it is evident that AP has a centralized management control system. The main office handles the purchasing, marketing, and sales activities of each of the three plants. Specifically, the vice president of sales and his two assistants manage the sales policies. The president and vice president of sales jointly assume responsibility for advertising and promotion. Finally, the vice president of manufacturing oversees the roasting, grinding, and packaging processes.

There are three production plants within AP’s manufacturing department; each plant is responsible for their own profits and losses. The plant managers’ bonuses are a percentage of their respective plant’s gross profit. The gross margin is prepared monthly by AP’s headquarters, calculated as the net sales less the cost of sales. Unfortunately, the managers have no control over the any of the major activities in their respective production facilities. The current complaint from manufacturing managers is the lack of control over their basis of performance measurement. We consider this argument as valid; the company is structured on a cost basis yet the cost system measures each plant on a profit basis. The current structure of the business creates an unfair measure of performance for the managers and the production plants.

Manufacturing: There are currently three roasting plants within AP. As previously mentioned, each plant takes responsibility for its own profits and losses. In other words, each plant is a centralized “profit center.” Production schedules are provided to each plant manager for the current and following month. The plant managers have no control over the...

Other Papers Like Aloha Products Inc

A Heart Of Darkness Essay

1748 words - 7 pages In this short story, there are frequent significant subject and ideas that make the story, "A Heart of Darkness," by Joseph Conrad, and haunting novel. The main theme is absolute white power over the natives. The theme validates the corruption, and the dependence caused by the white people as they took over the Congo. White men were giving all the power; they had no self-control, and in the end they did not use wisely. The white men became

The Aspects Of Vulnerability Among The Exploited In Medical Research

2287 words - 10 pages Essentially, everyone is in some state of vulnerability. However, some of us are more susceptible to harm due to our vulnerabilities. The susceptible are the individuals with the greatest risk. These individuals risk the loss of their autonomy, and maybe even their lives. Vulnerable populations can be found in every subset of society. However, as previously mentioned, there are some vulnerable populations that are at an even greater risk than

The Hitchhiker’S Guide To The Galaxy

1171 words - 5 pages The Hitchhiker’s Guide to the Galaxy As the human race makes life-changing discoveries, it is made apparent that there is always more to learn as the universe, instead of becoming familiar, is becoming absurd. The Hitchhiker’s Guide to the Galaxy, written by Douglas Adams, as well as the 2005 film adaption, portrays absurdity to be an all-encompassing system in the universe. Through the introduction and attempt to understand lack of reason, the

The Ford Motor Company Wage Increase Of 1914 And The Theory Of Incentives And Efficiency Wages

1252 words - 6 pages ‘It’s not the employer who pays the wages. Employers only handle the money. It is the customer who pays the wages’ (Henry Ford, cited in Johnson and Weinstein 2004, p. 2). When the Ford Motor Company announced that it would more than double the wages of its workers in January 1914 to a ‘five-dollar day’ minimum, was this a contradiction to Henry Ford’s statement? If customers are actually the ultimate payers of wages, then more than

Historical Analysis Of The Economical Breakthroughs Of The Industrial Revolution

1396 words - 6 pages best for themselves. Entrepreneurs would start up businesses, to try to make money off of demand for products. They would hire people to work for them, and they would also benefit via payment for their work. Other entrepreneurs, selling the same products, would make sure that prices were as fair as possible, which would benefit the consumer of the product. In order for this kind of economy to function well, however, the government could not be

Leadership Portrayed in Monologue from Shakespeare’s Henry V

1214 words - 5 pages Leadership is defined as a socially constructed process and which also affect organizational future outcomes. Leader is someone at high position who have overall duty for an organization, she or he decide what to do and the way how to achieve it. (Carter and Greer, 2013)The role of leader is extremely important for an organization, leader use their own power to influence the followers though many different ways such as motivation in order to

Cuba Civil Rights

1906 words - 8 pages , including inadequate medical care. Women also reported lack of access to feminine hygiene products and inadequate prenatal care”. Similarly there were a large number of outbreaks of diseases such as tuberculosis. The United States’ embargo on Cuba prevents medical supplies shipped from the United States Of America directly to Cuba; so it adds cost as well as time to this shipping nightmare. The Cuban government has many of problems in the

US Freight System

1273 words - 6 pages expected goals that could produce good economic results for its members, these members become very powerful over the League, and vice versa. The “Free Rider” issue impacts this matter, giving the NITL customers the opportunity to cancel their memberships at any time. As mentioned, there are organizations focused on specific segments of transportation, and they produce constant results to its members. This is a threat of substitute products or

Democratic Peace Theory

1852 words - 8 pages Intro: US Presidents have made it a goal during their term(s) in office to establish a good relationship with foreign countries and even try to improve upon existing connections with our allies. Some believe it is to prevent conflicts between the countries while others dispute that it is a threat assessment by the United States to pick and choose their friends and enemies. Preventing conflict between two democracies or countries that practice

Booker T. Washington

1621 words - 7 pages “Success is to be measured not so much by the position that one has reached in life as by the obstacles which he has overcome” –Booker T. Washing. Booker Taliaferro Washington was born in Hale’s Ford, Virginia on April 5th, 1856 to Jane Burroughs and an unknown White man. Washington was married three times. His first wife was Fannie N. Smith from Malden, West Virginia. Booker and Fannie were married in the summer of 1882 and had one child

Corn, Broccoli, Grass Or Balanced

2611 words - 11 pages this decision and the moral ethics made individuals stray from eating meat and animals by products, and they would conform to a vegan or vegetarian regimen. Because of the industrial food chain’s insensitive procedures, there has been a debate over eating industrialized meat or becoming a vegetarian or a vegan. Each side has impractical resolutions for the animal slaughtering crisis, so there is no unwavering solution. The solution is to reinstate

Related Essays

Freedom And Responsibility Essay

2141 words - 9 pages Built within the Constitution of the United States are specifically defined freedoms that are guaranteed to all citizens. Conversely, with every constitutional freedom there comes a corresponding responsibility. On September 25, 1789, the state legislature’s twelve proposed amendments were transmitted by congress, the first two dealing with congressional representation and congressional pay. The following numbers three through twelve were

Hate Crime Laws Essay

2348 words - 10 pages On June 7, 1998, 49-year-old James Byrd Jr. of Texas accepted a ride from three white men, who then beat him severely, urinated on him, chained him by his ankles to the back of their pick-up truck, dragged him for three miles into the countryside, and dumped his corpse in front of an African-American cemetery (Graczyk). A little over a year later, a jury sentenced ring leader John King to death by lethal injection (“Man Executed for Dragging

Rational Emotional Behavior Therapy Case Study Conceptualization And Treatment Plan

2140 words - 9 pages Rational Emotional Behavior Therapy Case Study of Sarah: A Conceptualization and Treatment Plan Rational emotive behavior therapy, REBT, was developed by Albert Ellis and holds the central belief that the events in our lives do not cause our disturbances but that they are instead caused by our view of the events (Murdock, 2009). Murdock (2009) states that “people are seen as responsible for their behavior” (p. 279) but, because they are

Holidays In Albania Essay

1636 words - 7 pages Have you ever thought about having exciting and incredibly cheap vacations? Albania might be the right choice. According to My Travel Guide, Albania is ranked the fourth among ten places worth visiting in Eastern Europe (“Top 10 Eastern European Destinations”). One can encounter three kinds of vacations in this Mediterranean country: winter, summer, and cultural. The ideal places to spend your winter vacations are the Albanian Alps. They are