Grand Jean Company

1071 WordsDec 1, 20085 Pages
Introduction: Founded in the 19th century, the Grand Jean Company survived the large economy crises in 1929. It became one of the largest clothing companies in the world around 1989. Its main products are pants for men and boys. But also women pants are produced there. With the “wash-and-wear”, bell-bottom and flare leans and modern casual pants, the company was market leading. The company owns 25 plants for manufacturing with an output capacity of 20.000 pants per week. However, this production is not enough to satisfy the demand on the market. As a result of that, the company decided to employ independent manufacturers. Last year, these contractors produced one third of the total sales. Grand Jean is a functional organization. The…show more content…
The indicator of performance is consequently not adapted to reach the goals of the company: be profitable. Considered the plants as expense centers causes other problems. The plants receive money for producing a determinate amount of jeans. This amount is decided compared to the production of the previous month, which is why plant manager has no interest to produce more than the quotas with the risk of not attaining the quota the month after (and this limitation of the production causes the limitation of the sales in opposition with the main goal of the company). Contrary to Mr. Wicks mind, the reward system of the plants manager doesn't improve the situation. This bonus is annual and it pushes some plant manager to « hoarding » some of the pants produced over quota to protect themselves against future production deficiencies, they just show their production exceeding at the end of the year to receive the maximum of
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