Casestudy on Grand Jean Company

want information on grand jean company casesudy Newest Papers = Search Grand Jean Company We have many free term papers and essays on Grand Jean Company. We =lso have a wide variety of research papers and book reports available to you for =ree. You can browse our collection of term papers or use our search =ngine. Grand Jean Company Introduction: Founded in the 19th =entury, the Grand Jean Company survived the large economy crises in 1929. It became =ne of the largest clothing companies in the world around 1989. Its main =roducts are pants for men and boys.

But also women pants are produced there. With =he “wash-and-wear”, bell-bottom and flare leans and modern =asual pants, the company was market leading. The company owns 25 plants for =anufacturing with an output capacity of 20. 000 pants per week. However, this =roduction is not enough to satisfy the demand on the market. As a result of that, the =ompany decided to employ independent manufacturers. Last year, these =ontractors produced one third of the total sales. Grand Jean is a functional organization. The plant divisions are considered as expense centers.

The =lants are wanted to produce a certain amount of pants, which is given by the =arketing staff, every year. The quotas depends on the result, the plant has =eached in the previous month. Because there are 5 different products, the company =as introduced 5 marketing centers considered as revenue centers. At the =nd of each year, all plant managers are evaluated on a scale from 1 to 5. The =onus they get in addition to their normal wage, depends on the grade, they =ere given by the Vice President of Production Operations and his two chief =ssistants.

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The received grade is multiplied with 10. 000 $. That results a maximum extra =ayment of 50. 000 $. What are the main problems in the management control =ystem? Grand Jean has a functional organization and it causes several disadvantages: there is no real way to determine the effectiveness of =he separate functional divisions (production and marketing). And yet, there =re real inequalities in these organizations because the marketing division =s higher awarded than the plants managers. Furthermore, the requirements =hich the plants’ manager have to meet are very