Ab Thorsten Case Essay

4275 Words Jun 17th, 2011 18 Pages
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Table of Contents
Executive Summary 3
Company Overview 3
Initial Proposal of XL-4 3
XL-4 Opposiation 4
Strategic Planning and Decentralization of Profit Centers 4
Goal Congruence and Management Control System 5
Conclusion 8
Definitions………………………………………………………………….……………………………………………………………………………8
Case Questions………………………………………………………………………………………………………………………………………10
References …………………………………………………………….……………………………………………………………………………..19
Class Discussion Points …………………………………………. .…………………………………………………………………………….19
Multiple Choice Questions ……………………………………………………………………………………………………………………19
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The team was astounded at the lack of vision and alignment with current goals to decentralize profit responsibility within the company as well as encouraging foreign subsidiaries to lead their companies with authority and initiative for the growth and betterment of the parent company. A member of Thorsten’s board, Mr. Norgren, and a banker by trade stated that he “considered this carefully. It is sound business for AB Thorsten, and XL-4 will help to build one more growth company in the Swedish economy” (Anthony, Govindarajan. 2007).

Mr. Gillot finally communicated to the Belgium team that the XL-4 project was matter of “key importance” to the company as a whole and as such he required that the matter be looked in to further and in greater detail (Anthony, Govindarajan. 2007). The results of the analysis came back from Lavanchy and they were extremely biased in favor of moving the entire project to Belgium. Ekstrom could only conclude one thing - that Belgium was simply creating enough doubt in the potential to succeed by Thorsten in order to obtain the XL-4 project and reap the rewards of the project for themselves (Anthony, Govindarajan. 2007).

Goal Congruence and Management Control System

Key points:

• Informal factors

o Mr. Ekstrom:

▪ Experienced

▪ Knowledgeable

▪ Formed well rounded team

▪ Conducted thorough research

o 400 ton annual goal in Sweden

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