...Hello Kranworth Chair Corporation This study case focuses on the change of the company’s structure into a decentralized company, since before the structure of the company Kranworth Chair Corporation was more or less centralized around the two owners being the center of the company. The company’s reporting system before the change was that there were several vice-presidents reporting to a centralized ruling entity. The key recurring decisions were made strictly on a corporate level due to the fact that the company was fully centralized, so there was not even any other way. The budgeting was made on the centralized level by the VP for finance, while the managing of operations, quality, inventory and supply was managed on the centralized level by the supply chain manager, as well as all marketing and advertising was made on the corporate level. Also, information technology support, the staffing and HR matters were taken care of on the corporate centralized level. With the new system and decentralization, there was a big difference in the allocation of the decision-making power over the departmental managers. Also, the departmental managers in the new decentralized level were responsible for their own budget, staffing, supply chain management, advertising, and other activities. This new approach gave the departmental managers more power and responsibility over their products and performance of the division. Even though the advantages of the decentralization are present, there...
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...Kranworth Chair Corporation This study case focuses on the change of the company’s structure into a decentralized company, since before the structure of the company Kranworth Chair Corporation was more or less centralized around the two owners being the center of the company. The company’s reporting system before the change was that there were several vice-presidents reporting to a centralized ruling entity. The key recurring decisions were made strictly on a corporate level due to the fact that the company was fully centralized, so there was not even any other way. The budgeting was made on the centralized level by the VP for finance, while the managing of operations, quality, inventory and supply was managed on the centralized level by the supply chain manager, as well as all marketing and advertising was made on the corporate level. Also, information technology support, the staffing and HR matters were taken care of on the corporate centralized level. With the new system and decentralization, there was a big difference in the allocation of the decision-making power over the departmental managers. Also, the departmental managers in the new decentralized level were responsible for their own budget, staffing, supply chain management, advertising, and other activities. This new approach gave the departmental managers more power and responsibility over their products and performance of the division. Even though the advantages of the decentralization are present, there also...
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...functional organization, who had the authority to make these decisions? Who has the authority to make these decisions in KCC’s new divisionalized organization? Did KCC top management go too far in decentralizing the corporation? Did they not go far enough? Or did they get it just right? Why? Evaluate KCC’s new performance measurement and incentive system. Assuming that KCC will retain its new divisionalized organization structure, what changes would you recommend, if any? Why? Assume that the R&D function is to be decentralized (given to the divisions). Would this necessitate changes to KCC’s performance measurement and incentive system? If so, which and why? If not, why not? Points from chapter that should highlighted: Financial responsibility centres (revenue, expense (ECC, DCC), profit (GMC, IPC, BPC, CPC, Investment centre) and the organization of these centres Ratios or specific elements used for measure Transfer pricing (market-based (ideal method), marginal cost (rare and not extremely useful), marginal cost and lump-sum fee,full-cost / full-cost and mark-up (most widely used), negotiated (can lead to power struggles), dual-rate OVERVIEW OF THE CASE As of 2003, Kranworth designed and manufactured a large range of foldable chairs and alternative portable seating. It also offered a print-screening customization service. It had 1500 SKUs with most profit coming from 40 SKUs. It had a good reputation for quality and customer satisfaction. It...
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...Some of the issues KCC is facing relate to the division of responsibilities between a functional and a divisional structure, and how best to achieve an effective relationship between these areas. Manager talent is another concern. Managers are coming from a centralized structure, and some are not trained to handle divisional responsibility, although they have been tasked with this responsibility. Consequently, some of the decisions made by the divisional managers are questionable from the perspective of the owners. Corporate control over supply chain management and R&D has also caused issues with the divisional managers. Corporate controls supply-chain decisions, which takes away the division managers’ ability to control some significant cost decisions, such as which supplier to purchase from. Corporate also controls R&D, which can significantly affect product design and quality, and ultimately, customer satisfaction. This can lead to decreased financial results. Therefore, the overall issue relates to the controllability principle, and how to best assign responsibilities for various functions and encourage goal congruent decision making. To start the analysis, the advantages and disadvantages of decentralization are explored. Here are some of the advantages of decentralization: Freeing up top management time, thus allowing top management to focus on the most important decisions. Given Kevin’s increasing outside interests (ranching), this would suit his needs. ...
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...Kranworth Chair Corporation (KCC) Executive Summary Kranworth Chair Corporation (KCC), founded in 1987 and headquartered in Denver, Colorado, produced a broad line of high quality and fashionable portable, folding chairs. For decade the company, protected by patents, has been enjoying a sale growth with high average margins in the range of 40-50%. However competitors, entering the market with comparable chair designs due to patents expiration, and the early 2000’s worldwide recession flattened sales and dropped profits. Kevin Wentworth, CEO and cofounder of KCC, came up with a new strategy to sustain their competitive advantage: value leadership. Kevin wants to move from KCC previous strategy of growing sales through quantity to focus on quality of sales. KCC wanted to differentiate itself by developing a stronger customer focus, understanding better customers’ needs and wants, and improving customer service levels. In order to implement the new strategy, Kevin decided to change the organization structure from functional to divisional. Kevin thought that divisionalization, if implemented properly, could help KCC achieve its objective. Jobs and responsibilities were redesigned and a new performance measurement and incentives program have been created to support Kevin’s new direction of corporate focus. Despite the conviction from most managers that this was a good idea, Kevin was privately worried about the risks involved. Unfortunately KCC’s early experiences with the divisionalized...
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...Homework Assignment 3, Kranworth Chair Corporation Case Study-Pratistha Das TO: Kevin Wentworth, CEO, Kranworth Chair Corporation FROM: Das Consulting Associates DATE: September 11, 2015 RE: Effectiveness of Decentralization of organizational structure in Kranworth Chair Corporation, Evaluation of its new performance measurement and incentive system and analysis of decentralization of R&D Kranworth Chair Corporation (KCC) was co-founded by Weston Krantz and Kevin Wentworth in 1987. In early years, KCC specialized in a broad line of high quality and fashionable portable, folding chairs, which were branded as various models of Fold-it! Brand and were sold exclusively to distributors. Over the years, KCC diversified its product range and produced chairs of various sizes, models, designs, chairs with various add-on features, of different prices and even of different materials. KCC also introduced some related products like ottomans, tripods, cots and stadium seats. It employed screen-printing artists and seamstresses to customize certain products. It kept track of its Stock Keeping Units. To boost sales volume KCC invested in advertising, added other distribution channels and tied up with major retail chains like Walmart, target, K-Mart, etc. in order to lower labor costs, KCC moved its manufacturing facilities to Mexico and China, except for some customizing and assembling facilities in Denver...
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...Read and Download PDF File Teletech Corporation Case Study Solution PDF Ebook Library TELETECH CORPORATION CASE STUDY SOLUTION Download: TELETECH CORPORATION CASE STUDY SOLUTION / PDF Teletech Corporation Case Study Solution in addition to the lessons as well as textbooks are basically 2 sides of the very same coin. The classes as well as textbook assist you construct a strong structure on which to be analyzed on. Teletech Corporation Case Study Solution on the other hand, allow you to place this expertise to practical usage. Teletech Corporation Case Study Solution allows you to create in all the relevant locations. The wonderful aspect of Teletech Corporation Case Study Solution are their cost. They are not horribly expensive and evaluating that against their worth, you could not actually pay for to be without them. They are excellent for bringing a context to the course and also aiding you establish your understanding of the training course as a whole. The other alternative which is much less preferable is to examine the program in a bit-by-bit way which is a danger when it pertains to evaluation day. Doing this is likely to leave gaps in your understanding of the program. Utilizing the Teletech Corporation Case Study Solution assists draw all this know-how together into a relevant context and also it is fundamental in developing a further understanding of the topic. One more fantastic aspect of Teletech Corporation Case Study Solution are that taking a particular...
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...ACCT 463/CCMA523 WINTER 2015 ASSIGNMENT 1 KRANWORTH CHAIR CORPORATION Company Overview Kranworth Chair Corporation (KCC) was incorporated in 1987 by Weston Krantsz and Kevin Wentworth. KCC is a manufacturing company, and the name of the Company is associated with FOLD-IT! brand that includes production of high-quality and fashionable portable, folding chairs and related products. The main manufacturing line was concentrate to produce (i) folding chairs (produced at several price points) and related products (tripod stools, ottomans, costs, and stadium seats) in Mexico and China manufacturing facility and (ii) custom-designed products in the Denver location. The main KCC’s customers were: • Major retail chains (Wal-Mart, K-Mart, Target) that provided highest sales volumes but with lower gross margin; • Other retail chains (e.g. sporting goods); • Corporations for custom-design products orders. From the begging of activity KCC was a Company that had little competition and high margin rate. However, since 1999 the Company faces some cash and business issues related to the new loan, the new competitors on the market and the worldwide recession. At that point of time Kevin realized that in order to keep the business in good shape new changes should be done . This changes are to solve the main strategic issues the company faces, which include: eroding profit margin, fierce completion, inventory in more than a thousand types of products and parts and rather tight...
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...Kranworth Chair 1. Identify the most important key recurring decisions that must be made effectively for KCC to be successful. In KCC’s functional organization, who had the authority to make these decisions? Who has the authority to make these decisions in KCC’s new divisionalized organization? Some of the most important key recurring decisions that must be made were contracts with distributors, marketing and R&D. In the beginning all of these decisions were made by top management. Though contracts many times were from sales teams, the majority of the big deals had some involvement of the top management. In the new divisionalized organization, most of this is divided up to the two divisions. Though R&D is still a centralized division, with their team head reporting only to top management, all of their decisions and outputs are determined by the division heads. So most of the decisions used to be determined by the top management but most of these have been given down to the division leaders. Kevin broke it out to profit centres. 2. Did KCC’s top management go too far in decentralizing the corporation? Did they not go far enough? Or did they get it just right? Why? I personally believe from Kevin’s point of view they went too far. For the example, Joe talking with a new advertising agency, Kevin didn’t believe this was the right approach as he thought the actual marketing was fine it was just the product placement in the actual stores which caused the...
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...------------------------------------------------- Course OutlineDepartment of Accounting and FinanceSchool of Business and Economics | ACCT 4250-01 Advanced Management Accounting (3,0,0) MWF 1:30-2:20 PM A&E 208 Instructor: Dr. Laura Jean Kreissl Office: IB 2060 Office Hours: please check office door Email: lkreissl@tru.ca Email is strongly recommended over voicemail as it is checked more frequently Phone/Voice Mail: 250-852-7675 Last Updated: November30, 2015 Calendar Description Building on ACCT 3250: Intermediate Management Accounting, students explore the integrative and interdisciplinary role of management accounting and its contribution to the strategic management process and the provision of quantitative and non-quantitative information for planning, control, and decision making. Topics include management control systems; results controls, action, personnel and cultural controls; control system tightness; control system cost; designing and evaluating management control systems; financial responsibility centers including transfer pricing; planning, and budgeting; incentive systems; financial performance measures; the myopia problem; uncontrollable factors; corporate governance; and ethical issues. | Educational Objectives/Outcomes Upon completing this course, students will be able to: 1. Locate the role of Management Control Systems (MCS) in both strategy and operations. 2. Describe results control and its applications. ...
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...Syllabus Certified General Accountants Association of Canada 100 – 4200 North Fraser Way Burnaby, British Columbia Canada V5J 5K7 www.cga-canada.org © CGA-Canada, 2013 All rights reserved. These materials or parts thereof may not be reproduced or used in any manner without the prior written permission of the Certified General Accountants Association of Canada. Printed in Canada ISBN for an individual volume: 978-1-55219-599-4 About CGA-CANADA _________________________________________ CGA-Canada today The CGA designation focuses on integrity, ethics, and the highest education requirements. Recognized as the country’s accounting business leaders, CGAs provide strategic counsel, financial leadership, and overall direction to all sectors of the Canadian economy. The Certified General Accountants Association of Canada — CGA-Canada — sets standards, develops education programs, publishes professional materials, advocates on public policy issues, and represents CGAs nationally and internationally. The Association represents 75,000 CGAs and students in Canada, Bermuda, the Caribbean, Hong Kong, and China. Mission CGA-Canada advances the interests of its members and the public through national and international representation and the establishment of professional standards, practices, and services. A proud history CGA-Canada was founded in Montréal in 1908 under the leadership of John Leslie, vicepresident of the Canadian Pacific Railway. From the beginning, its objective...
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