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Xerox Case Study

Decent Essays

CASE STUDY
Xerox Corporation

Question 1
Outline the management control system at Xerox. What are the key elements that make the system work?
During 1970s, the management system of the company was rigid and accuracy was emphasized, which compromised the management control quality and also lead to unnecessary bureaucracies. In addition, customers’ satisfactions were also neglected due to the bureaucracy occurred. Then, the company’s targets were set unrealistically by the numbers people i.e. the managers who set the goals. To make it worse, the targets made were based on inadequate data and analysis which ignores the internal and external factors of the company. Besides, the reporting and planning process were very long and …show more content…

The strategy was emphasized on the involvement by the employee, competitive benchmarking for maintaining their performance standards and the quality improvement process i.e. continuously improving company’s internal processes in coping with customers’ requirements.
In addition, Xerox has established several joint ventures with other companies in other regions in gaining the market shares in the region. For the access to Europe, Africa and Middle East – Xerox has made a joint venture with Rank Organization PLC, thus, forming Rank Xerox Limited and now the company is under Xerox’s full control since 1997. For the access to Japan and Asia, Xerox has made a partnership with the local firm and established Fuji Xerox (still maintained the joint venture until now). At the same time, separate arrangements were made with the South and Central American countries. In addition, Xerox India (formerly Modi Xerox), is the joint venture company derived with Dr. Bhupenda Kumar Modi in 1983 (Xerox has obtained a majority stake in 1999).
The Finance Executive Council (FEC) has evolved from being an accounting policy group to the added-value accounting group. Their role have greatly involved in formulating management decisions by working closely with the operating units. They have set their course in becoming a world-class financial operation based on their benchmark studies. In addition, the FEC has become the development centre for financial talents. The FEC has actively promoting trust

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