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Kooistra

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Kooistra Autogroep

Vishnukanth Chivasubramaniam
Student #: 260426841
CCMA 523-Management Control Systems
Due Date: December 20 2015
Executive Summary Kooistra Autogroep was a reputable family-owned automobile retailing company founded in 1953. The company initially began in a single location in Netherlands, selling and servicing few brands. However, growth was imminent for the fortunate company as it soon made recognition for itself by securing a spot as a top 20 player in the Dutch Dealership Market. Its growth stemmed from the successful acquisitions made in the southern regions of Netherlands in the hopes of battling the upcoming competitive environment. Growth was one of the many visions held by the former CEO of Kooistra who believed in expanding the number of brands sold, standardizing the operating procedures and exploiting economies of scale to hold a competitive position in the industry. By 2007, Kooistra owned 13 dealerships, sold 10 brands of automobiles and had 325 employees. Although the company was growing in size, the profit margins remained still, which signaled a need for amendments in the system. In 2002, the former CEO handed his position to his son, Tom Kooistra to carry on the family fortune. Tom Kooistra began his journey as CEO by making various modifications to the traditional system. He decided to change his father's view on the centralized organizational structure. He believed that it was necessary to empower the managers by giving them more authority so that they can be accountable for their actions. As a result, the organization made a transition from a centralized organization to a decentralized one. This ultimately led to changes in the management control systems and their design. Tom Kooistra introduced three new systems: performance reporting, budgeting and pay-for-performance as means of supporting the newly implemented

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