Case 1-3 : Xerox Corporation ( A)

Question 1 : Outline the management control system at Xerox. What are the key

elements that make the system work?

Xerox Corporation had gone through two different era in their management control

system which are the analytical era of the 1970s and after the quality cultural revolution

of the 1980s.

- During 1970s :

Accuracy and rigid systems were more important than listening to the customer

Too many controllers will make inadequate decision making process and

bureaucratic.

There was never enough data or analysis that make reporting and planning process

was very long and inaccurate.

- After revolution of 1980s :

Leadership through quality is the main management control system. Quality is a

strategic tool use to improve competitiveness and organizational effectiveness at

Xerox.

Competitive benchmarking enable Xerox identify the company that they believe to

be the best managed in the industry and use numbers from that company, either with

cooperation of that company or from published material as a basis of comparison.

Financial Executive Council(FEC) is the central focal point for the finance function

at Xerox. FEC had contributed in the formulation of management decision at the

operating unit which added more value to the management process and they set the

course for becoming a world class financial operation.

Proper goal setting - each operating unit had a set custom-designed targets.

- Key elements that make Xerox system work :

Employee actively participate in problem solving.

Open communication among workers and employers.

Well-trained people able to perform assigned duties.

Latest information technology facilitate information sharing and marketing.

Review and continually make an improvement based on customer requirement.

Make a standard for comparing internal performance and implement the best

practices to improve performances.

Question 2 : What recent trends at Xerox do you see influencing the management

control process?

There are several trends that have influenced the management control process in Xerox

Corporation :

Worldwide business network had make Xerox growth rapidly as possible.

Multinational corporation serving.

Find foreign partner who offered immediate entry into oversees market.

Leasing contact rather than equipment sale.

Joint venture

Form a partnership.

Ownership structure varied based on the country and the local partner.

Question 3 : In your opinion, how important are organizational culture and

individual personalities in the Xerox control process?

In my opinion, there have a strong connection between organizational culture and

individual personalities in the Xerox control process.

Organizational Culture

Open communication especially in problem solving process.

Can accept criticism for improvement.

Segregation of duties based on their work skill.

Have clear target to be achieve.

Individual Personalities

Vocal and actively engage in the problem solving process.

Willing to keep learning new things for the sake of the organization.

Always willing to accept assignments and trying to implement them in earnest.

The individual must be in line with the organization to achieve the targets that have

been set.

UNIVERSITI UTARA MALAYSIA

COLLEGE OF BUSINESS

SEMESTER 2 SESSION 2014/2015

BKAM 5023

MANAGEMENT ACCOUNTING AND CONTROL SYSTEM

INDIVIDUAL ASSIGNMENT :

CASE 1-3 : XEROX CORPORATION (A)

PREPARED BY :

NUR ILI NAJIHAH BINTI ADNAN

818855

PREPARED FOR :

PROF. MADYA DR. CHE ZURIANA

SUBMITTED DATE :

28 MARCH 2015