...North Country Auto, Inc. * Inleiding In deze paper zal de casus over het bedrijf North Country Auto Inc. (NCA). worden geanalyseerd. Het bedrijf is een franchise dealer en service centrum voor Volkswagen, Saab en Ford. NCA is gehuisvest in de omgeving van New York en opgestart in 1968. Er zijn vijf profit centra erkend in het bedrijf verkoop nieuwe en tweedehandse auto’s, onderdelen, service, olievervanging en body shop. In de analyse zal worden stilgestaan bij de volgende punten: Hoofdstuk 1: Bedrijfsbeschrijving Hoofdstuk 2: Transferpricing Hoofdstuk 3: Verantwoordelijkheidscentra Hoofdstuk 4: Levers of Control Bedrijfsbeschrijving NCA is een franchisedealer en servicecenter voor drie verschillende automerken (Saab, Ford en Volkswagen). Sinds 1988 wordt NCA bestuurd door George Liddy en Andrew Jones. De organisatie heeft een divisiestructuur. George Liddy focust zich op de divisie die verantwoordelijk is voor de verkoop van nieuwe en tweedehandse auto’s, terwijl Andrew Jones zich focust op de divisies onderdelen, service, olievervanging en body shop. Hierna zullen kort de verschillende divisies worden besproken. Verkoop nieuwe en tweedehands auto’s De verantwoordelijkheden van deze divisie zijn verdeeld over twee afdelingen, met elk een verkoopmanager. Eén voor verkoop van nieuwe auto’s en één voor de verkoop van tweedehands auto’s. Deze managers werden beloond met een vast salaris, een bonus per verkochte auto en een percentage van de brutowinst. Hun leider...
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...North Country Auto. Inc. 1. Latar Belakang George G, Liddy salah sau pemilk North Country Auto, Inc sangat senang mempunyai sistem pengendalian baru. Dengan memiliki lima departemen (penjualan mobil baru dan bekas, pelayanan, bodi mobil, dan suku cadang). North Country Auto, Inc. Merupakan agen penjualan dan pusat pelayanan resmi dari Ford, Saab, dan Volkswagen. Dimana saat itu mulai populer Multiple Franchise pada tahun 1980. Perusahaan ini dimiliki oleh George Liddy dan Andrew Jones. Liddy membeli saham dealership dan Jones bergabung menjadi patnership sejak tahun 1988. Liddy memusatkan pekerjaan pada penjualan mobil, sedangkan Jones berkonsentrasi pada pengelolaan departemen suku cadang, servis, dan body shop atau “back end” dari dealership. Untuk mengatasi penjualan kendaraan yang lesu para pemilik melakukan strategi dengan memberikan potongan harga yang berkombinasi persediaan tinggi dimana kondisi ini diperlukan oleh para konsumen. Serta membuat alternatif sumber arus kas yang baru. 2. Struktur Departemen-North Country Auto, Inc. Penjualan Mobil Baru dan Penjualan Mobil Bekas Memiliki seorang manajer setiap depatemen mobil baru dan bekas. Dan memiliki enam agen penjual yang sama. Manajer penjualan mobil baru bertanggung jawab memberi masukan kepada Liddy untuk pemesanan mobil baru dan campuran persediaan serta berperan menyetujui besarnya harga penjualan dan penilaian nilai tukar tambah dalam transaksi konsumen. Servis Sumber utama pendapatan ...
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...North country auto , inc . Was a company the dealer being also had authorization to to serve some brands a car as it ford , saab , and volkswagen .North country auto having two partners , namely george liddy and andrew jones .Andrew jones is the possessor noerth country auto making their first since the company is established , while george liddy new join the last few years .When george liddy join , companies experienced changes inside the system control company management . North Country Auto, Inc. has five departments or business units, i.e. New Car Sales, Used Car Sales, Service, Parts, and Body Shop. Before Mr. Liddy joined the company, North Country Auto, Inc. all departments and business units operate as one business entity (centralization). Managers of each business unit to be rewarded with a fixed monthly remuneration and bonuses that are subjectively determined the top management of the performance of each manager. Mr .Liddy assume that the system did not provide the motivation to managers and employees to work better for the company .Because of it , mr .Liddy make changes by applying a decentralized system against bisnis-unit relations and the responsibility of business units in the company .By applying decentralization , given the trust as the center business units profit ( profit center and operate as if they are companies that stand alone. This change has had an impact on the system change in return or given incentive.Any manager besides obtain basic salary of berifat...
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...BAB 5 PUSAT LABA Pertimbangan Umum Suatu organisasi fungsional adalah organsasi dimana fungsi produksi atau pemasaran utama dilakukan oleh unit organisasi yang terpisah. Ketika suatuorganisasi di ubah menjadi organisasi dimana setiap unit utama bertanggungjawab baik atas produksi maupun pemasaran, maka proses ini disebut dengan istilahdivisionalisasi. Kondisi-kondisi dalam mendelegasikan tanggungjawab laba . Langkah utama dalam membuat pusat laba adalah menentukan titik terendah dalam organisasi dimana kedua kondisi diatas terpenuhi. Seluruh pusat tanggungjawab diibaratkan sebagai suatu kesatuan rangkaian yang mulai dari pusat tanggungjawab yang sangat jelas merupakan pusat laba sampai pusat tanggung jawab yang ukan merupakan pusat laba. Kelaziman suatu pusat laba Dalam suatu survey yang dilakukan atas sebuah perusahaan fortune 1000 diAS, dari 638 responden, 93 % merupakan perusahaan yang memiliki 2 atau lebih pusat laba. Manfaat pusat laba Menjadikan unit organisasi sebuah pusat laba dapat memberikan manfaat sebagai berikut : –Kualitas keputusan dapat meningkat karena keputusan tersebut dibuat oleh para manager yang paling dekat dengan titik keputusan. –Kecepatan dari pengambilan keputusan operasional dapat meningkat karenatidak perlu mendapat persetujuan terlebih dahulu dari kantor pusat. –Manajemen kantor pusat bebas dari pengambilan keputusan harian sehingga dapat berkonsentrasi pada hal-hal yang lebih luas. –Kesadaran laba dapat ditingkatkan karena manajer...
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...North Country Auto, Inc. Write-up Background and Cost Accounting Environment In 1989, North Country Auto, Inc. a franchised dealer and factory-authorized service center implemented a new control system. The company was divided into five decentralized profit centers---New Car Sales, Used Car Sales, Service, Parts and Body shop. The bonus of each department manager is based on the departmental gross profit. The analysis using the Porter’s Five Forces Model indicates that the average profitability of vehicle sales industry is low. There are more and more educated customers and increasing number of industry new entrants. Also the industry itself is characterized by high inventories and aggressive discounting. The Major Crisis Facing the Company Recently, one vehicle transaction heighted problems within the new structure and sparked frictions among different profit centers. Although each profit center should maximized its profits, they must not negatively affect other profit centers. Mangers of those profit centers disagreed on the current transfer price among departments and profit and cost allocations. The analysis of exhibit 3 shows that the new car sales department generates the highest sales and gross profit. However, parts department has the highest profit before common expense. Generally speaking, The profit margin is highest in parts department with a profit margin of 12.56% and then followed by body department (profit margin 9.09%) and service department (...
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...North Country Auto Contents 1 The Case 2 1.1 Content 2 1.1.1 Background 2 1.1.2 Problems 3 1.2 Lessons 4 1.3 Case Analysis 4 1.3.1 Profitability of a transaction 4 1.3.2 Trade-in loss 5 1.3.3 UCS loses 5 1.3.4 What advice do you have for the owners regarding the new NCA structure? 6 2 Other Frameworks 6 2.1 Control 6 2.1.1 Input 6 2.1.2 Process 6 2.1.3 Output 6 2.2 Profit Plan 7 2.2.1 Profit wheel 7 2.2.2 Cash wheel 7 2.2.3 ROE wheel 7 2.3 Measuring divisional performance 7 2.4 Balanced Scorecard 8 2.5 Transfer Prices 8 2.6 Incentive system 9 2.7 Control levers to manage risk 9 2.7.1 Operations risk 9 2.7.2 Asset impairment risk 9 2.7.3 Competitive risk 9 2.7.4 Franchise risk 9 2.8 Final framework 10 3 Exhibits 10 Overview: The link between control systems and strategy The link between control systems and organizational structure (spans, cost/profit centers) The choice of what to control The profit plan Strategic profitability analysis (SPA) Designing asset allocation systems Measuring divisional performance The Balanced Scorecard (BSC) Transfer prices (TP) – calculation of prices, which method was used? Incentive systems Control levers to manage risk PM&CS as control levers The Case Content Background Company information Centralized company Franchised dealer and authorized service center for Ford, Saab and Volkswagen The dealership was situated in an upstate New York town with a population of about 20.000 The company maintains...
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...Numerical: (1) North Country Auto-Transfer Pricing problem, Page 181, Book: MCS by Vijay Govindarajan & Robert N Anthony Solution: Facts of the case: (a) North Country Auto has departments/profit centre : (i) New & (ii) Used Car Sales, (iii) Parts, (iv) Service & (v) Body. (b) New & Used cars dept.: Headed by managers. They dealt in cars of Ford, Saab & Volkswagen. (c) Parts dept.: Manager was responsible for tracking parts inventory for the three lines & minimizing both carrying cost & “obsolescence.” (d) Service dept.: The service dept. Occupied over half the building space & was most labour intensive. (e) Body Shop: They consisted of a manager, three technicians & a clerk. Questions to be answered: (1) Using the data in the transaction, compute the profitability of this one transaction to the new, used, parts, and service dept. Assume a sales commission of $250 for the trade-in on a selling price of $5000. (Note: use the following allocations, new: $835; Used: $665; parts: $32; service: $114, for overhead expenses while computing the profitability of this one transaction. These overhead allocations are also shown as Note 13 in Exhibit 3.) Ans [pic] O.H expenses has been converted into for the complete units. Thus for this one transaction the Net Profit will be $10,78,000/- Assumption: Variable Cost for used cars is taken as 87.86% of Sales (as derived from the Financial statement-Exhibit 3). (2) How...
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...The movie, “North Country”, provided a clearer picture of the abuse women have put up with for years, although these stories have always been around, I never viewed it in a movie form. It brings feelings of gratitude for how far we’ve come in America but also disappointment as women still deal with these issues today, but on a smaller scale. It is a part of our society. The movie defiantly portrays a traditional gender-based struc¬ture. It takes place in a very tight knit community that holds strongly to how things have always been and how they should stay. Men are the providers and women are the mothers and home makers. The men value their gender role more than the family they actually providing for. As long as each individual stays within the parameters set for them in this traditional gender role they are loved and provided for, but as soon as those lines are crossed there place in the community is at...
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...This happened three years ago. When I first became a north country school student I am a really nervous and inbound person. I will never start a conversation with others because I thought that if I say something that is wrong, they won’t be my friend. I never want to try new things because I am afraid that when I fail, people will laugh at me and tease me. Sometimes, even when people were ask me questions, I will keep silent. Not because I don’t know the answer, it’s because I refuse to try. I remember a great events that build up my friendship with Johanna which is my houseparent and also my advisor. It happen two years ago. Once during the basketball practice, I was trying to block someone from shooting. The person who got block called...
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...North vs. South No matter what skin color, religion, culture or even ethnicity, everyone deserves to get treated the same. That is how most of the people today see things as, but back then everyone was in a different situation. The South and North did not agree in many things, and the main issue was slavery. The northern and southern states varied in a lot of situations like that, which eventually had them leading to the Civil War. There were economic, social, and even political issues that was taking over. Anyone now can say that they rather live in North America than South because of the problems they both had. North and South America in the 1800’s was really different from each other in many ways, however it’s hard to believe from this...
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...The North West Company Executive Summary: The North West Company is a leading retailer of food and everyday needs in rural Canada. They are currently using a “push” strategy with the category managers at headquarters analyzing trends, placing orders and allocating products to stores. Inspired by Giant Tiger’s pull system, North West management was considering giving store managers more control over their inventory ordering by moving to a “pull” replenishment strategy. Barry McLeod, Director of Procurement and Marketing, has been assigned with determining if this “Pull” strategy would be a better fit. In order to reduce the risk and capitalize on the benefits, North West should localize in the hands of Regional Retail Managers. This strategic change will be beneficial for North West as they would gain the required regional/store level knowledge while avoiding giving all the responsibility to local store managers and investing a large amount of dollars to support the pull system. Table of contents: Contents Issue(s) Identification 1 Environmental & Root Analysis: 2 Alternatives and/or Options: 3 Recommendation: 4 Implementation: 5 Monitor: 6 Issue(s) Identification The North West Company is experiencing inventory management problems with unsold inventory piling up as well as experiencing stock outs resulting in lost sales. They have not been able to increase their yearly inventory turns from 2.2, well short of industry averages....
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...Case 5-2: North Country Auto- teaching notes (case facts in red) Internal Environment – key facts about the Company • North Country Auto is a: Franchised dealer & factory authorized service centre– 3 manufacturers (SAAB, Ford, VW) o Began operations in 1968 o 5 departments (new car sales, used car sales, service, body, and parts) o Situated in upstate NY- pop. 20,000, served two nearby towns of 4,000 people as well as rural areas covering a 20 mile radius • George Liddy & Andrew Jones – equal share ownership in the corporation and involvement in operations (Mr. Jones one of the founders), Mr. Liddy (since 1988)(front end), Mr. Jones (back end)) External Environment – 5 forces – Threat of New Entrants –HIGH/LOW o Proliferation of new entrants o 6 acre lot & 25,000 sq ft facility o Costly to be a franchised dealer - Each manufacturer used a different computer system for tracking inventory and placing new orders and required dealers to maintain an adequate service facility with a crew of trained technicians and spare parts inventory, level of investment per product line, o Fewer than 50% of dealers were expected to make a profit (US) in 1990 o margins to fall below 1% of sales Rivalry among Competitors –HIGH o Aggressive discounting and small margins o depressed sales (vehicles) o Fewer than 50% of dealers were expected to make a profit (US) in 1990 o margins to fall below 1% of sales o multiple franchises common in the 1980s o Industry parts...
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...another economy for customers on transportation costs. As a result of new store layout, IKEA has been able to allow sales clerk to focus more on in-store displays and fast moving lines. Another set of firm specific advantages of IKEA is related to the relationship with suppliers. IKEA has created global sourcing network of more than 2,300 suppliers in 67 countries. With these connections around the world, it has been able to cut price at many stores while maintaining sufficient quality standards. Because of these influences, IKEA experiences huge economies of scale, allowing it to match rivals’ quality while undercut prices worldwide. Lastly, IKEA has its legacy of quality in different countries. IKEA has always maintained the best quality in all the countries that it has opened outlets in. It’s creative business model and store layout has created its own advantages for IKEA, as word-of-mouth advertising, along with limited traditional advertising and record-breaking distribution of free catalogues, have created an unmatched all over the world buzz for the company. 2. Country specific advantages IKEA experiences many country specific advantages. First, IKEA’s location spread throughout the rest of Europe. IKEA...
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...Throughout history there has been a big difference between the North and the South. Now however, they have both changed but there are still some people who live the old way. This is shown in the William Faulkner story “A Rose For Emily”. In this story there is a woman, Ms. Emily Grierson that lives in the ways of the old South when all the people of her town have changed and moved on in their way of living, but they still look up to her because she is a strong representation of their past. There is also a man named Homer Barron who came to the town from the north to work. He strongly represented the north and brought change to the South. Faulkner uses these two characters, Homer and Emily, to show the reader the differences of the North and the South, and also how the north affected the South. In the story, Faulkner creates Ms. Emily’s character around that of the old South’s. In William Faulkner's "A Rose for Emily" Faulkner uses subtle but notable clues in the story to prepare the reader for the ending. One of the more major underlying themes that Faulkner uses to prepare the reader is the contrast between the north and the south and the progress of time which is to include the incompatibility between Homer the "Yankee" and Emily the southern bell stuck in the past. Though not as much a major theme as important clues is Emily's reluctance to give up her father's corpse, the purchase of rat poison, Homer suddenly disappearing, the light in the upstairs room not turning on for...
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...“What is the seven council fires?” The” seven council fires” are the seven major divisions. The seven councils were all close to having the same cultures. “What were the councils?” The Dakota had four councils,” Mdewakanton, Wahpekute, Wahpeton, and Sisseton”. The Nakota had two councils” Yankton, and Yanktonai”. The last council is from the Lakota, it is called “Tenton’. Today, the Dakota, Nakota, and Lakota communities are located in Minnesota. “What did these councils wear?” The council's wore clothes mostly made from animals or bead work. They wore moccasins, feather headdresses, and a beaded dress. “ What was the language the council's spoke?” Most of the members of the seven councils had their own language called” Siouan language”...
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