Executive Summary This explanation presents a case involving problems at a chemical manufacturing firm, Axeon N.V. having grown into a international confederation, problems have emerged; do to ineffective performance beat systems and lack of strategic control. The next management report describes and analyses those problems and presents solutions and recommendations.
With headquarters in the Netherlands, Axeon N.V. operates three subsidiaries; in the U.K. Scandinavia and Southern Europe. The subsidiaries have considerable autonomy to determine their mathematical product mix and the setup of new manufacturing facilities. Case analysis revealed adept defects in the Companys operation resulting from poorly designed performance measurement systems and inefficient strategic control. These defects have led the Company to reenforce subsidiary managers for focusing solely on their subsidiaries short-term receipts and profit but not for contributing to the long-term optimization of sh arholder returns. The case also presents an apparently profitable proposal, do by the U.K. subsidiary, that subsequent an approval by the board of directors becomes a matter of controversy as its alleged profitability is questioned by management at Axeons headquarters. Case analysis reveals that not yet is the proposal incorrectly constructed but is further more(prenominal) unprofitable and would not have been presented if proper performance management systems had been in place. This report recommends rejection of the above mentioned proposal and that Axeon implements effective performance management systems to break congruency of management and Company goals.
About the Company Axeon N.V is a multinational Company specializing in the manufacturing of industrial chemicals.
With headquarters in the Netherlands, the Company has over the years acquired subsidiaries in the U.K., Italy and Sweden. The subsidiaries are responsible for gross sales in the U.K., Southern Europe and Scandinavia, respectively, accounting for 8%, 14% and 6% of Axeons total sales. All other sales are handled by Axeon in the Netherlands.
The Company emphasizes decentralization, allowing subsidiary...
Pretty informing, but the sources should have been more diverse to make it more conclusive. Well-written and very good.
The case isnt salutary presented. The case didnt explain any issues and provide solutions..
waste of $$..
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