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Xerox Case Presentation
Group Members
Ashutosh : F-11 Bhavna B : F-12 Bhupendra V :F-13 Bhuvan M : F-14 Chougale R : F-15 Devina J : F-16 Ashmant T : M-11 Awadhesh K : M-12 Bhavik S : M-13 Bhushan D : M-14
Introduction Bhupendra Vira
Roll No:F-13
COMPANY OVERVIEW
Positioned as the global multinational document company
Serving the global document processing market through products ranging from copiers to workstations
Facilitating global financial services market through operations like insurance, financing of instruments etc.
Business existence in over 130 countries
The Success Story Annual sales growth exceeded 25% from
year 1946 to 1973 in plain paper copier business
Annual growth of earning exceeds 35% in the same period
Brought about an early revolution by introducing 914 plain paper copiers
The copying equipment business achieved the growth from 20 million in 1959 to 9.5 billion in1965 just within 6 years
Created a global network through the partnership model like Rank Xerox and Fuji Xerox
HURDLES
At the end of 70’s problems started due to the entry of domestic and foreign companies
Market share of Xerox fell from 96% to 45% in same period
Company was in competitive pressure ,due to introduction of low range copiers by Japanese firms
The Japanese companies were selling their equipments at Xerox’s manufacturing cost
Global PartnershipsBhushan Dhade
Roll No: M-14
Global Partnerships Rank Xerox Limited:
- 51/49 Joint venture established in 1969- Europe, Africa and parts of Asia
America Customer Operations:- Operated in Canada, South & Central America, China
Fuji Xerox:- 50/50 Joint Venture- Operated in Japan and other Asia Pacific
regions
FECBhuvan Motta
Roll No: F14
FINANCE & CONTROL FUNCTIONS The central focal point for the finance function of
Xerox was FEC The membership consisted of senior corporate
finance staff & CFO’s from the major Xerox operating organizations
FEC set the course for becoming a world class financial operation based on their benchmark study
They felt controllers could contribute in the formulation of mgt. decisions at operating unit
FEC evolved in parallel with the start of LTQ & benchmarking activities
FINANCE & CONTROL FUNCTIONS The key to value added concept was in helping
line managers to make more perfect business decisions
Building trust in Xerox finance community Meet once a quarters for two days and
discussions on wide range of financial matters Many members had been in the FEC for 10 yrs They know each other well and freely express
their ideas and opinions
Organisation of XeroxBhavik Sheth
Roll No: M-13
Organisation of Xerox9 business divisions3 geographic customers operation
divisionPrimary focus was on business
management levelDivision responsible for research and
technological development, manufacturing, sales, services & administration
Financial Organisation of XeroxDocument processing financial
organization was a modified matrix organization
Direct reported to the general manager and dotted line relation to corporate finance
Business division engaged in product development & manufacturing were managed globally
Financial Organisation (..contd)Customer operation division were
organized geographicallyThe MCS concentrated on
responsibilities and performance of all 12 divisions
Sub units of each business units reported directly to general manager of division and dotted to the division controller
Development & Manufacturing
Awadhesh KumarRoll No: M-12
Development & Manufacturing 1992: different functions of the organization
integrated into 9 business divisions A core Corporate Strategic organization
provided contracted support to the divisions Two modes of operation for the development
or manufacturing facility: If annual production >= 90% of their output for
specific division, then included in that business group
If supported multiple business groups, then placed in Corporate Strategic Services Group
External Financial Reporting Xerox followed the legal organizational
structure Fuji Xerox being an affiliate company, report
contained only results of equity investment in it Operational management accounting
reports or performance reporting focused on Business division results
Match accountability & responsibility by operating unit within a business area
Both financial & management control reporting systems functioned in parallel
Management Control Measures taken at Xerox
Rajendra Chougale Roll No: F-15
Leadership Through QualityFundamental principle is meeting
customer requirementQuality meeting is the main focus Improvement in competitiveness and
organizational effectiveness through quality
LTQ plan was fully integrated business process looks for improvement in processes as well as products
Major components of LTQ are:- 1) Employee involvement2) Competitive benchmarking3) Quality improvement process
Leadership Through QualityContd…
Competitive BenchmarkingContinuous process of measuring
Xerox’s product, services, etc against competitors
Main goal is superiority in all areas like : Quality, product reliability and cost
Learning experience where the Best practices are observed and measured to create targets for future
employee involvement is necessary and is linked to each operating unit’s business plan
It requires competitive data, practices, performance, decision making and communication at all levels of organization.
Competitive Benchmarking Contd…
Quality Improvement ProcessReview and continually improve all
internal processes Follow processes which focuses on
meeting customer requirements
Recent trends influencing the Management Control System
AshutoshRoll No: F-11
The Old Way
Till 1987, the monthly process reporting included complete financial analysis
Operating under very tight time schedule
All operating activity statistics were to be provided by all the units for corporate reporting requirements
The New Way
Report consists of specific data of key operational statistics
Significant reduction in number of people involved in the reporting process
Evolution of informal reporting system with emphasis on open and honest communication, trust & no surprises
Organizational restructuring In 1992 the functions of the organization
were integrated into 9 business divisions Core Corporate Strategic Services
Organization provided support to the divisions, in case of facilities supporting multiple business group
Matching of accountability and responsibility by operating unit within a business area
Parallel functioning of financial and management control reporting systems
Importance of Individual Personalities and Organizational Culture
Devina Jaca Roll No: F16
Employee Involvement in LTQ Xerox developed a corporate
revitalization program called LTQ Program driven by senior
management Over 100,000 employees were
trained over a three year periodEmpowered employees started a
number of initiatives, many involving environmental and quality improvements, yielding in added profits each year
Role of Individual Personalities in MCS
Proactive role played by the Xerox people to make the company culture work
Active participation of business controllers in decision making
Control function works closely with the line management
FEC evolved to obtain greater involvement of finance executives
Importance of Organizational Culture
Free expression of opinions and ideas
Informal channel of reporting
Regular talks between supervisors and their subordinates
Unit controllers knew financial and operational aspects of their business units
ReportingBhavna B.
Roll No: F12
Reporting Until 1987, Reporting process – Complete
financial package Reports were due on a very tight time
schedule FEC – Monthly Financial results in full
detail from all units not necessary Units reported Specific, but limited, data Value of information did not change Significant reduction in number of indirect
people involved in the process
Reporting
Informal Reporting System had evolved Talks were Informative and centered
around Problems and Business Risks FEC – Maintained a standard of “No
Surprises” and Promoted Trust among the Controllers
Informal Network – Open discussion of issues
Informal Channel of Reporting complemented the Formal Channel
THANK YOU
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