This website uses cookies to ensure you have the best experience. Learn more

Vershire Company Control System Essay

551 words - 3 pages


Vershire Company has several division and one of the largest one is the alumunium can division. This division is one of the biggest can manufacturers in United States. However, the market characteristics in which the customers loyalti is low and entry barriers does too. One of the Vershire’s strategies is to have lean production system along with tight control over their plants,budgets, and performance to have process efficiency. There are several strengths and weaknesses in Vershire’s planning and control system.
Strengths | Weaknessess |
* The divisional managers are required to make 5 years-expenditures and two years-market forecast in order to be able to predict the future decisions and goals. * Between corporate controllers, divisional managers, and plant managers have ...view middle of the document...

* The forecasting method for all divisions is similar. * The incentive measurement is not efficient since it is measured by profit target. * Less corporation between manufacturer managers and marketing managers. |

It is clear that plant managers should be responsible for profits unders several circumstances as follows:
a. There should be correlation between plant managers and sales managers. Sales managers are the ones who are responsible to pricing, sales mix, and customers relation. To boost the profit maximally, they should work together.
b. Since corporate controller visit the plant managers, plant managers can give insight toward what happen in the market. This can help the corporate level to arrange the profit target reasonable.
c. The company has the incentive program for plant managers for those who has high profit performance
In exhibit 2,the Velshire management focus on profit. However, it is the responsibility of plant managers to drive the sales in order to reach the targeted profit. Commonly, the plant managers is responsible on how to make production system work efficiently and effectively. The one who is responsible for profit and sales is sales manager. Thus, the performance evaluation system in exhibit 2 can not work properly since the plant managers cannot control sales.
Further, in exhibit 3, plant managers only have the ability to control what cost to produce. Meanwhile, the performance mechanisms are being made similarly between one to another. This would create bias in analyze the work performance.
In order to maximize the company performance and win the market competition, there are several steps can be taken:
a. More open communication among corporate managers and division managers in terms of formulating the upcoming year’s budget.
b. Create doted line between marketing managers and manufaturers managers so there will be direct communication among them.
c. The incentives program should not only focus to profit only but other factors such as production efficiency progress.

Other Papers Like Vershire Company Control System

Justification for an Internal Control System

657 words - 3 pages Justification for an Internal Control System Christine Griffin ACC 544 July 28, 2014 Richard Cornett Justification for an Internal Control System As the controller for my company, I monitor all financial activities, conduct audits as needed, create high-level financial reports, and implement accounting methodologies to make the company run efficiently (PayScale, n.d.). The leadership of the company has asked me why there is a need

Management Control Essay

548 words - 3 pages I think AirTex need a new control system at the time of the takeover; AirTex’s old control system was not effective to serve its objectives, and there are some main reasons why its old control system didn’t work. Firstly, lack of direction, to be specific that is AirTex’s employees don’t know what the company want from them and how can them perform to match the desire from company. Secondly, there was no motivational plan mentioned before the

Kudler Fine Foods

1030 words - 5 pages can see in the flowchart provided, segregating the duties of ordering the inventory, processing the invoices from the vendor, and receiving the inventory eliminates or significantly lowers the internal risks that can threaten the system. Management approval of the different processes also adds another control by validating that everything matches up with the items that the company originally ordered. Design internal controls to mitigate risks

Justification for an Internal Control System

936 words - 4 pages Internal Control Systems are very important for the risk management department of a company. This system helps keep the company protected from losing assets or incorrect use of assets. They also assist the company with keeping record and staying on track with objectives needed to be met. A controller’s duty would be to support management and the reporting of accounting and financial information. To start off, insurance and portfolios would

The Evaluation of Ljb Company Internal Controls

979 words - 4 pages resource and financial staff and control is limited to one person throughout each department this type of control allows for a high level of fraud and mismanagement of company assets. Once your company goes public there will be a vital need to bring in Segregation of Duties controls. This internal control will lead to a better check and balance system throughout the company future growth. With regards to the company hiring future employees the first


599 words - 3 pages executive level. At this level, bureaucratic control is used by management to control employee behavior through a system of rewards and formal procedures. One way Starbucks implements its formal procedures is through the control of franchising. Howard Schultz the owner and creator of Starbucks is quoted on franchising by stating, “Starbucks remain steadfastly opposed to franchising, so that the company could control the quality of its

System Evaluation Paper

875 words - 4 pages fill out as many applications with secure details. The system stores clients information and details, but helps to know what the next step for the client is, and notifies all team members who need to contact the client for any reason or notifies all team members when an issue arises. The data input into Salesforce CRM will Apollo Company using CRM now would integrate public relations, marketing, sales, customer service, quality control


1707 words - 7 pages AutoZone Company. The old e-commerce system of the company is also basic in the sense that it provides information to clients and allows for online ordering. However, just like the other two systems in this company, the e-commerce system of the AutoZone Company also lacks advanced tools and features. For instance, the web site does not have advanced order-tracking functions that would enable the company and its personnel to monitor and control the

Systematic Approach in Health Care

915 words - 4 pages //A Company can attain its goals with the help of a systematic approach. A system design is very important from the company's point of view. Under this section, we will discuss about system design and parameters of evaluating an effective system designing.// System Design A systematic approach is very necessary in every organization to deal with business functions, whether the organization is a manufacturing or a service unit. The proper

The Feudal Society of Matewan

1019 words - 5 pages The Feudal Society of Matewan The Stone Mountain Coal Company wielded monopoly control over the town of Matewan through a feudal system of economic, cultural, political, and environmental processes. Every person in the town of Matewan came under the power of the company in one way or another. The employees of Stone Mountain were under a bondage contract with the company. Once they came to the company it was impossible to leave and at


1188 words - 5 pages a) In the Westchester case, Westchester Distributing Inc is in a position of losing its license as a result of the company violating section 25600 of the California Alcoholic Beverage Control Act. This act prohibits a licensee from giving gifts to customers linked to sales. The weak internal control system at Westchester permitted 2 employees to exploit the system. They bribed a customer, Mr Moon, with $200, so as to induce him to buy the slow

Related Essays

Evaluation Of System Of Internal Control Lbj Company

1037 words - 5 pages related activities, particularly those involving authorization, custody, or recordkeeping. For example, the same person who is responsible for an asset's recordkeeping should not be responsible for physical control of that asset. Having different individuals perform these functions creates a system of checks and balances. • Proper authorization of transactions and activities helps ensure that all company activities adhere to established

Solartronics, Inc Essay

890 words - 4 pages The Vershire Company has to keep tight controls over their plants, budgets, and performance in terms of efficiency and effectiveness, because customers can easily purchase from another manufacturer if cost, quality, and service are not met. The planning strength of the Vershire Company is that a sales budget is formulated at the corporate level and starts with a forecast, which is created and sent to the divisional managers for review. This

Vershire Company Essay

2984 words - 12 pages same capacity. If the manager of the company vershire not giventhe profit responsibility system performance evaluation in the 2 do not need to useenough sale items using standard cost and actual cost just to see Vershire CompanyProblem: What measures should the different units be held responsible for? How should they then beevaluated? Case Context: Aluminumcan industry-cash cow-cost leadershipDivisional, decentralizedBudgetary Control

Management Control System Essay

4918 words - 20 pages divisional controller. The reason for this is stated in our recommendations. Case 4-1 Vershiire Company 1. Outline the strengths and weaknesses of Vershire Company’s planning and control system. * Vershire’s planning system * Strengths:  When formulating the sales budget, divisional managers are required to predict market conditions and capital expenditures. The forecasting is done at the corporate level and is then sent to the