Formosa Plastic Group Case Study

1262 WordsApr 28, 20126 Pages
EXECUTIVE SUMMARY Formosa Plastic Group (FPG) was founded in 1954 and headquartered in Taipei, Taiwan with over 47,000 employees. FPG was the largest private diversified chemical company that produced and sold a broad range of products which mostly related to plastic. It also operated 6000 bed hospital, medical college, a nursing school, and a technical college. FPG was organized into three major corporations and other affiliated companies. Those three major corporations are Formosa Plastics, Nan Ya Plastics, and Formosa Chemical & Fibre Corp, and each corporation were consist of several divisions. Most of the administrative functions of the company were centralized in order to take the economies of scale for granted. FPG had…show more content…
By using this system, it can assist all level of employee to have clear vision and strategy into objectives. Other than that, it can measure and monitor the improvement that can be achieved by the company. In Balanced Scorecard, there are many aspects that will be monitored and measured the performance. To have this to be done, the Balanced Scorecard is using Key Performance Indicator (KPI) which is in line with their objectives. Each KPI has their specific percentage to be achieved. Therefore, all employees will have better understanding about their task of what to be achieved based on the targeted percentage. At the end of the year, all employees will be evaluated based on their specific achievement. In the case of the issue of shortage of ethylene, it is the best way for the company to overcome the problem by building its own ethylene plant. The company should convince the government to give the permission by informing them not to worry about over capacity because the plant is planned to be built for their own operation. Furthermore, the new plant will not cause harm to environment because the wastages will be properly disposed. The other alternative, FPG can also utilize any used plastic products as their substitute material to cover the shortage of the ethylene. This recycle activity will majorly help in reducing the problems of plastic disposing. THE MAJOR ELEMENTS OF CONTROL SYSTEM FPG have two control systems which are management control system
Open Document