Practice Test Organizational analysis requires data and information about the internal environment. SWOT analysis refines this information by applying a general framework for understanding and managing the environment under which a company operates. SWOT analysis consists of evaluating a company's internal strengths and weaknesses and its external opportunities and threats. SWOT analysis underscores the basic point that strategy must produce a good fit between a firm's internal capabilities.
These plants serve customers in their own geographic region. It is very common for a plant for example, to have a large portion of their sales going to a few customers. Most of the customers in turn,prefer to enter into large volume contracts with two or more two being the general norm can producers.
The contracts are typically fixed for a period of time, with price changes typically once a year being indexed to raw material prices. In this line of business, customers relied on their suppliers for quality and delivery and would not hesitate to turn to other can producers if a supplier was found wanting on either cost or customer service or delivery or quality considerations.
Four Global companies supplied aluminium to can producers, and at least two of them also manufactured cans and other containers. All can producers employed essentially the same technology and Alucan's product quality was comparable to it's competitors.
The Budget was used as the primary tool to achieve goal congruence. The Budgeting process started in May I June with each divisional general manager DGM submitting a preliminary forecast for sales and forecasts for income and capital requirements. These forecasts were typically not detailed. This was followed by Central Market research staff who undertook a more thorough study of market and other conditions for the next year and the following two years thereafter.
The research staff then came out with a detailed forecast for each division integrating the divisional forecasts and considering all relevant factors such as macro economic conditions, competitive trends in the packaging industry,new products, inventory, etc.
The forecasts were then forwarded to the divisions for review and fine tuning. The DGM's then compiled their own detailed sales forecasts obtaining bottom up information from the district sales managers closer to the customers and to the field. The district sales forecasts were consolidated at the division level with no changes being made without the approval of the district manager.
The process was then repeated at the corporate level. Once approved, these figures became agreed to fixed targets. The overall sales budget was then translated into a sales budget for each plant, broken down according to the plants from which the finished goods would be shipped.
Each plant then budgeted gross profit, fixed expenses,and pretax income.
Profit was measured as the sales budget less budgeted variable costs including OM,Dl,and VMO all at standard costs and rates less budgeted fixed costs.
The plant manager was held responsible for this budgeted profit number even if actual sales fell below predicted sales. Cost standards and cost reduction targets were developed by the industrial engineering department. Before plant budgets were submitted, controller staff from the head office visited each plant to understand the plant's thinking behind its budget numbers so that they could present that to senior management.
This also gave an opportunity for plant managers to understand senior management's objectives and strategy. The plant budgets were then submitted in September to the division head office where they were consolidated and presented to the DGM's for review.
At this stage the DGM's had the option of asking plant for revisions to the budget if needed. The finalized budget were then submitted to the Board of Director's in December for approval. Once approved,budgets were difficult to change.
Any problems that arose between sales and production at a given plant were expected to be resolved at the field level. It was expected that rush orders would be discussed and resolved between sales and production.
While production could suggest various courses of action,it was always understood that the customer was the primary concern. Sales therefore had the final responsibility to get the product to the customer and sales had the final say on how quickly and how essential it was for the product to be shipped.
The firm periodically once a month monitored and reported variances action was taken immediately to remedy the cause for the variances without waiting for the monthly report.
Explanations were called for and provided to top management as needed. The sales department had the sole responsibility for the prices,sales mix,and delivery schedules. The plant manager had the responsibility for plant operations and plant profits.
Plant managers were motivated to meet their profit goals in a number of ways. First, only capable managers were promoted with profit performance being a main factor in determining capability. Second, their compensation packages were tied to achieving profit targets.Apr 02, · Strengths and Weaknesses Essay Exaplain Paiget's Thoery on Child Devlopment and Its Strengths and Weaknesses ean Piaget an influential psychologist was the first to have made a systematic study of cognitive development.
A tool for auditing a business and its own environment, SWOT analysis is the principal level of planning which helps marketers to give attention to key issues of business strategies.
However, SWOT stands for strengths, weaknesses, opportunities, and threats. Start studying psychology applied to health. Learn vocabulary, terms, and more with flashcards, games, and other study tools. (good for a squeezed healthcare system) which study assesses utility of model predicting adherence?
design? outline. strengths and weaknesses? SWOT analysis refines this information by applying a general framework for understanding and managing the environment under which a company operates.
SWOT analysis consists of evaluating a company's internal strengths and weaknesses and its external opportunities and threats. When planning your answers, it's a good idea to categorise the various strengths that you wish to present and prepare a few from each category.
That way, you can be sure you’re covering all the bases. Page 1 of 2 SCHOOL OF BUSINESS AND HOSPITALITY Case Study Requirements - Vershire Company p SPRING Course Information: strengths and weaknesses of planning and control system • Outline the strengths and weaknesses of Vershire Company’s planning and control system.