Galvor Company

1053 WordsNov 18, 20075 Pages
GALVOR COMPANY History and Background: The Galvor company had been founded in 1946 by M Georges Latour who continued as its owner and president until 1974. The company had acted as a fabricator, buying parts and assembling them into high quality, moderate cost electric and electronic measuring and test equipment. On april 1, 1974 Galvor was sold to Universal Electric Company for $4.5 million worth of UE's stock. M. Barsac replaced M.Chambertin as Galvor's controller in April of 1974. The Business Plan The business plan was the primary standard for evaluating the performance of unit managers and everything possible was done by Universal's top management to give the authority to the plan. Each January the Geneva headquaters of…show more content…
Requests for major changes had to be submitted to Geneva no later than mid-October. Reporting to Universal Every Universal unit in Europe had to submit periodic reports to Geneva according to a fixed schedule of dates. Since the reporting system made no distinction between units of different size, Galvor submitted the same reports as a unit with many times its sales. Main focus in most of the reports was on the variance between actual results and budgeted results, differences between the current year and the prior year Description of Reports Thirteen different reports were submitted by the controller on monthly basis, ranging from a statement of preliminary net income, which was due during the first week following the close of each month to a report on the status of capital projects due on the last day of each month. The final item "controller's monthly operating and financial review contained an explanation of the significant variances from budgets. Cost of the System The control and reporting system including preparation of the annual business plan, imposed a heavy burden in both time and money on the management of an operating unit. The change to a formal monthly reporting system has been difficult to a realize cause due to the low level of employees training and many tasks must be fully performed by the controller and chief accountant. The number of

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