Irizar Case

2246 Words9 Pages

Norwegian School of Management: Management Control
Lecturer: Hanno Roberts

Authors: Aqsa Butt Assad Hafeez Elisabeth Harvei Eric Osei Torje Fjotland
Executive Summary

IRIZAR is a luxury coach builder and a part of large Co-operative Corporation (MCC) with share holdings in five other countries. It went through crisis in the 1990s as a result of changes in internal and external environments. To survive in the crisis and regain competitiveness in the market place, Mr. Saratxaga was appointed as the new leader of the company. He made revolutionary changes (i.e. change in mission and business model through participatory management) and was able
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Creating a sustainable competitive advantage, in an increasingly dynamic and competitive environment (i.e. uncertainty); Irizar will have to make relevant choices. Three choices are available: 1) Management Control Systems 2) Performance Measurement System and 3) manage the network. A Social Network Analysis should be performed and furthermore implement Interactive Controls Systems to identify and capture key individuals in the network. This also allows for the creation of contingency plans/strategies.

Forcadell. F.J et al (2002), reports that the process of creation, storage, distribution and application of new knowledge has been systematized (with Knowledge Management Tools) in Irizar through working, supported by values like trust and tolerance. This indicates that more conventional control and performance systems are necessary to sustain the model in case of unpredicted happenings like: a) Saratxaga leaves the company b) The company continues to expand into other product areas and regional areas with less regard for such a model. c) One or more members begin to break trust and behave opportunistically and, d) Unpredicted changes in the competitive environment might requires different business model

Irizar should not design a different system, but, revise the existing reporting channels and incrementally change and become more
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