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Rendell Company Case Study Essay examples

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Rendell Company Case Study

Executive Summary
This report will give us a clear perspective as to what the optimal organizational structure that suits Rendell Company plus some additional control system in attaining the company’s main objectives. We will be also tackling the roles, functions and responsibilities of a controller in an organization. This case takes us into Rendell Company which is currently having problems between the corporate controller and the divisional controller. We assessed the advantages and disadvantages of the organization structure of Martex whether it can be applied and be implemented to Rendell Company in order to resolve the problem. Through the frameworks and issues, we concluded that while current setup …show more content…

6. We decide which alternative is more aligned with company objective and organizational set-up.
7. Recommendations after analyzing these frameworks.

IV. Analysis

Current Setup:

Strengths:
-Current setup is more efficient
-This setup would resolve tactical issues much easily because of better relationship between division managers and divisional controllers. With the division controllers reporting directly to division managers, the current set-up allows tactical issues to be resolved more easily.

Weaknesses: wrong
-Biased information is provided by the division controllers to the corporate controller.
-Hidden fats in expense budget.
-Difficulties to implement new control techniques.

Proposed Setup:

Strengths:
-Unbiased and objective reports on division budgets and performance from division controllers to the corporate controller.
-Corporate controller is more confident in reports given by the division controllers
-Minimized fats in expense budget
-Easier to implement new control programs

Weaknesses:
-Difficult to implement change in organizational structure
-Change may not be suitable for diversified companies
-Division managers might isolate division controllers from the management team
-Organizational change may lead to dysfunction and inefficiencies
-Change may lead to conflict between division mangers and division controllers

Role of Corporate Controller:
 Establish the

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