...North Country Auto, Inc. * Inleiding In deze paper zal de casus over het bedrijf North Country Auto Inc. (NCA). worden geanalyseerd. Het bedrijf is een franchise dealer en service centrum voor Volkswagen, Saab en Ford. NCA is gehuisvest in de omgeving van New York en opgestart in 1968. Er zijn vijf profit centra erkend in het bedrijf verkoop nieuwe en tweedehandse auto’s, onderdelen, service, olievervanging en body shop. In de analyse zal worden stilgestaan bij de volgende punten: Hoofdstuk 1: Bedrijfsbeschrijving Hoofdstuk 2: Transferpricing Hoofdstuk 3: Verantwoordelijkheidscentra Hoofdstuk 4: Levers of Control Bedrijfsbeschrijving NCA is een franchisedealer en servicecenter voor drie verschillende automerken (Saab, Ford en Volkswagen). Sinds 1988 wordt NCA bestuurd door George Liddy en Andrew Jones. De organisatie heeft een divisiestructuur. George Liddy focust zich op de divisie die verantwoordelijk is voor de verkoop van nieuwe en tweedehandse auto’s, terwijl Andrew Jones zich focust op de divisies onderdelen, service, olievervanging en body shop. Hierna zullen kort de verschillende divisies worden besproken. Verkoop nieuwe en tweedehands auto’s De verantwoordelijkheden van deze divisie zijn verdeeld over twee afdelingen, met elk een verkoopmanager. Eén voor verkoop van nieuwe auto’s en één voor de verkoop van tweedehands auto’s. Deze managers werden beloond met een vast salaris, een bonus per verkochte auto en een percentage van de brutowinst. Hun leider...
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...BAB 5 PUSAT LABA Pertimbangan Umum Suatu organisasi fungsional adalah organsasi dimana fungsi produksi atau pemasaran utama dilakukan oleh unit organisasi yang terpisah. Ketika suatuorganisasi di ubah menjadi organisasi dimana setiap unit utama bertanggungjawab baik atas produksi maupun pemasaran, maka proses ini disebut dengan istilahdivisionalisasi. Kondisi-kondisi dalam mendelegasikan tanggungjawab laba . Langkah utama dalam membuat pusat laba adalah menentukan titik terendah dalam organisasi dimana kedua kondisi diatas terpenuhi. Seluruh pusat tanggungjawab diibaratkan sebagai suatu kesatuan rangkaian yang mulai dari pusat tanggungjawab yang sangat jelas merupakan pusat laba sampai pusat tanggung jawab yang ukan merupakan pusat laba. Kelaziman suatu pusat laba Dalam suatu survey yang dilakukan atas sebuah perusahaan fortune 1000 diAS, dari 638 responden, 93 % merupakan perusahaan yang memiliki 2 atau lebih pusat laba. Manfaat pusat laba Menjadikan unit organisasi sebuah pusat laba dapat memberikan manfaat sebagai berikut : –Kualitas keputusan dapat meningkat karena keputusan tersebut dibuat oleh para manager yang paling dekat dengan titik keputusan. –Kecepatan dari pengambilan keputusan operasional dapat meningkat karenatidak perlu mendapat persetujuan terlebih dahulu dari kantor pusat. –Manajemen kantor pusat bebas dari pengambilan keputusan harian sehingga dapat berkonsentrasi pada hal-hal yang lebih luas. –Kesadaran laba dapat ditingkatkan karena manajer...
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...North Country Auto, Inc. Write-up Background and Cost Accounting Environment In 1989, North Country Auto, Inc. a franchised dealer and factory-authorized service center implemented a new control system. The company was divided into five decentralized profit centers---New Car Sales, Used Car Sales, Service, Parts and Body shop. The bonus of each department manager is based on the departmental gross profit. The analysis using the Porter’s Five Forces Model indicates that the average profitability of vehicle sales industry is low. There are more and more educated customers and increasing number of industry new entrants. Also the industry itself is characterized by high inventories and aggressive discounting. The Major Crisis Facing the Company Recently, one vehicle transaction heighted problems within the new structure and sparked frictions among different profit centers. Although each profit center should maximized its profits, they must not negatively affect other profit centers. Mangers of those profit centers disagreed on the current transfer price among departments and profit and cost allocations. The analysis of exhibit 3 shows that the new car sales department generates the highest sales and gross profit. However, parts department has the highest profit before common expense. Generally speaking, The profit margin is highest in parts department with a profit margin of 12.56% and then followed by body department (profit margin 9.09%) and service department (...
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...North country auto , inc . Was a company the dealer being also had authorization to to serve some brands a car as it ford , saab , and volkswagen .North country auto having two partners , namely george liddy and andrew jones .Andrew jones is the possessor noerth country auto making their first since the company is established , while george liddy new join the last few years .When george liddy join , companies experienced changes inside the system control company management . North Country Auto, Inc. has five departments or business units, i.e. New Car Sales, Used Car Sales, Service, Parts, and Body Shop. Before Mr. Liddy joined the company, North Country Auto, Inc. all departments and business units operate as one business entity (centralization). Managers of each business unit to be rewarded with a fixed monthly remuneration and bonuses that are subjectively determined the top management of the performance of each manager. Mr .Liddy assume that the system did not provide the motivation to managers and employees to work better for the company .Because of it , mr .Liddy make changes by applying a decentralized system against bisnis-unit relations and the responsibility of business units in the company .By applying decentralization , given the trust as the center business units profit ( profit center and operate as if they are companies that stand alone. This change has had an impact on the system change in return or given incentive.Any manager besides obtain basic salary of berifat...
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...North Country Auto Contents 1 The Case 2 1.1 Content 2 1.1.1 Background 2 1.1.2 Problems 3 1.2 Lessons 4 1.3 Case Analysis 4 1.3.1 Profitability of a transaction 4 1.3.2 Trade-in loss 5 1.3.3 UCS loses 5 1.3.4 What advice do you have for the owners regarding the new NCA structure? 6 2 Other Frameworks 6 2.1 Control 6 2.1.1 Input 6 2.1.2 Process 6 2.1.3 Output 6 2.2 Profit Plan 7 2.2.1 Profit wheel 7 2.2.2 Cash wheel 7 2.2.3 ROE wheel 7 2.3 Measuring divisional performance 7 2.4 Balanced Scorecard 8 2.5 Transfer Prices 8 2.6 Incentive system 9 2.7 Control levers to manage risk 9 2.7.1 Operations risk 9 2.7.2 Asset impairment risk 9 2.7.3 Competitive risk 9 2.7.4 Franchise risk 9 2.8 Final framework 10 3 Exhibits 10 Overview: The link between control systems and strategy The link between control systems and organizational structure (spans, cost/profit centers) The choice of what to control The profit plan Strategic profitability analysis (SPA) Designing asset allocation systems Measuring divisional performance The Balanced Scorecard (BSC) Transfer prices (TP) – calculation of prices, which method was used? Incentive systems Control levers to manage risk PM&CS as control levers The Case Content Background Company information Centralized company Franchised dealer and authorized service center for Ford, Saab and Volkswagen The dealership was situated in an upstate New York town with a population of about 20.000 The company maintains...
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...Numerical: (1) North Country Auto-Transfer Pricing problem, Page 181, Book: MCS by Vijay Govindarajan & Robert N Anthony Solution: Facts of the case: (a) North Country Auto has departments/profit centre : (i) New & (ii) Used Car Sales, (iii) Parts, (iv) Service & (v) Body. (b) New & Used cars dept.: Headed by managers. They dealt in cars of Ford, Saab & Volkswagen. (c) Parts dept.: Manager was responsible for tracking parts inventory for the three lines & minimizing both carrying cost & “obsolescence.” (d) Service dept.: The service dept. Occupied over half the building space & was most labour intensive. (e) Body Shop: They consisted of a manager, three technicians & a clerk. Questions to be answered: (1) Using the data in the transaction, compute the profitability of this one transaction to the new, used, parts, and service dept. Assume a sales commission of $250 for the trade-in on a selling price of $5000. (Note: use the following allocations, new: $835; Used: $665; parts: $32; service: $114, for overhead expenses while computing the profitability of this one transaction. These overhead allocations are also shown as Note 13 in Exhibit 3.) Ans [pic] O.H expenses has been converted into for the complete units. Thus for this one transaction the Net Profit will be $10,78,000/- Assumption: Variable Cost for used cars is taken as 87.86% of Sales (as derived from the Financial statement-Exhibit 3). (2) How...
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...Case 5-2: North Country Auto- teaching notes (case facts in red) Internal Environment – key facts about the Company • North Country Auto is a: Franchised dealer & factory authorized service centre– 3 manufacturers (SAAB, Ford, VW) o Began operations in 1968 o 5 departments (new car sales, used car sales, service, body, and parts) o Situated in upstate NY- pop. 20,000, served two nearby towns of 4,000 people as well as rural areas covering a 20 mile radius • George Liddy & Andrew Jones – equal share ownership in the corporation and involvement in operations (Mr. Jones one of the founders), Mr. Liddy (since 1988)(front end), Mr. Jones (back end)) External Environment – 5 forces – Threat of New Entrants –HIGH/LOW o Proliferation of new entrants o 6 acre lot & 25,000 sq ft facility o Costly to be a franchised dealer - Each manufacturer used a different computer system for tracking inventory and placing new orders and required dealers to maintain an adequate service facility with a crew of trained technicians and spare parts inventory, level of investment per product line, o Fewer than 50% of dealers were expected to make a profit (US) in 1990 o margins to fall below 1% of sales Rivalry among Competitors –HIGH o Aggressive discounting and small margins o depressed sales (vehicles) o Fewer than 50% of dealers were expected to make a profit (US) in 1990 o margins to fall below 1% of sales o multiple franchises common in the 1980s o Industry parts...
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...4. Marketing strategies of Skoda Auto in Vietnam 4.1 Marketing Objectives: The main objectives of the company are: * To penetrate into the Vietnamese market in 2015 * To create brand awareness for local consumers and increase customer’s perception towards its brand name * To become one of the ten biggest car brands in the market The choice of 2015 as entry year is favorable for Skoda because Vietnam’s automotive market is growing quickly and all competitive advantages for the company including lower vehicle import tax, high demand of Vietnamese consumers etc will help company to enter the market successfully. 4.2 Segmentation, targeting, positioning strategy Target groups for Skoda Auto’s vehicles will be based on four groups of segmentation variables such as Geographic, Psychographic, Demographic and Behavioral In Geographic segmentation, two major regions for the company are Hanoi Capital in the North and Ho Chi Minh City in the South. Ho Chi Minh City and Hanoi capital are chosen in terms of numerous population, high income level and high demand of car purchase. Concerning the population scale, Ho Chi Minh stood in the first position with 7,165,000 people and the second was Hanoi with 6,472,000 people. In Demographic segmentation, both men and woman, aged between 25-60 years are addressed. Average Vietnamese household size is about 4.1 person/household, so Skoda’s models such as Fabia, Octavia, Yeti will be the most affordable choice for the Vietnamese...
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...for the Top Speed ICAR Modified Tour. Currently we are seeking marketing partners for the 2015 and beyond. Enclosed is supporting documentation, including the history of ICAR. Please feel free to contact me further to discuss potential sponsorship opportunities and to learn more about its many benefits to you. Thank you, Dave Muzzillo ICAR-Top Speed Modified Tour 260-665-8889 About Motorsports Sponsorship | A company can benefit from motorsports sponsorship in many ways, such as: * Enhancing Image and Shaping Consumer Attitudes Companies are often looking to improve how they are perceived by a particular audience. One way of achieving this goal is by becoming affiliated with well-liked sports personalities. Professional auto racing is the largest spectator sport in the world and reaches a consumer market that crosses all boundaries of age, race and gender. Sponsoring a racing driver is an excellent way to shape the buying attitudes of this vast demographic and will help to generate a positive reaction towards your company. * Driving Sales Sponsorship geared towards driving sales can be...
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...7 Cities Do It Yourself Auto Repair Assignment 2Week 8: Marketing Plan Part B Roderick D Williams Strayer University Marketing Management Professor Caitlyn Worner 6/1/14 7 Cities Do It Yourself Auto Repair The concept of 7 Cities Do It Yourself Garage did not derive from the passion of an individual repairing their own automobiles, it derived from finding a money saving solution to small auto repairs. Many people do not change their own oil, which is a very inexpensive preventive maintenance cost. Once you get the feel for doing your own oil changes, it will lead to you learning more about vehicle repairs and the amount of money saved in the process. This knowledge will come in handy especially during difficult economic down times, like the economy in 2008. As you learn more about at home car repairs, some required tools and equipment are not available for use in the driveway or garage. Researching a few backyard mechanics you will find the same problems. In addition, many people that rent homes and apartments are not allowed to work on automobiles on the premise, of the rental property; in the city of Norfolk it is illegal and by owner discretion in others. Roderick Williams has been a vendor at a local flea market for over 10 years and through his consumer connections, he was often asked does he know of someone that can fix this or repair that. Another vendor sells stereo equipment, but there is no one to install the equipment, especially on rainy days...
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...NASCAR was family owned. It was founded by a man named William France Sr in 1947. William was a mechanic and auto repair shop owner in Washington DC. NASCAR held its first strictly stock race on June 19 1949 at the Charlotte speed way in North Carolina. Where 13000 fans watched Glenn Dunnaway finish the 200-lap race first in his Ford. After that other race ways were opening like Daytona International Speedway which opened in 1959. Then soon after that Daytona 500 was opened February that year. And the last thing that made racing big today is how long it took to come this far. Between the whole concept of racing starting in the 1920s because of moonshiners out running the cops by supping up their cars. Or all the generations of race cars getting better as years goes by and all the experiences from changing the body styles and car parts. Over the years as racing became more and more popular they made more race tracks...
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...A SUMMER TRAINING PROJECT REPORT ON BAJAJ AUTO PVT LTD. PREPARED BY Pankaj Sankharva (M.B.A. 1st Year) Chirag Manek (M.B.A. 1st Year) R.K. COLLEGE OF BUISNESS MANAGEMENT RAJKOT. (GUJARAT) MAY – JUNE 2006. I Pankaj Sankharva undersigned the student of M.B.A 1st Year. Of R.K. college of Business Management here by declares that the project work presented in this reports is my own work & has been carried out under supervision of Mr. Kumara Anjaria, Sales Manager of “Automotive Manufacturers Pvt Ltd” at Rajkot. It is a authorize showroom and service station of Bajaj Auto. Date:- Place :- Mr. Pankaj Sankharva I n today’s competitive world the practical study forms an important part in each and every professional course. The MBA is a course in which the theoretical knowledge is backed by the practical study. That study is in the form of project. The Summer Training Project is one of the important parts of the curriculum. And each and every student has to work for the project. The summer project enables the students to know more about the application of theoretical knowledge. The current situation of the market is made known to the students when they undertake the project. The project gives better insides into the application part of the theory. The companies in an industry and their operations can be better known by the students when they analyze the data, and prepare the grand project. This project is on the analysis of Two...
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...MC53: Positioning & Creative Strategy Exam project spring 2012 CPR. Nr. 280880-3030 Table of content Part one: Category Background .............................................................................................................. 2 Presentation of chosen product............................................................................................................ 2 Market background information´s ....................................................................................................... 2 Part two: Analysis of Competitive Advertising ........................................................................................ 4 General characteristics of the car industry .......................................................................................... 4 Skoda Citigo advertising analysis ....................................................................................................... 4 Seat Mii advertising analysis ............................................................................................................... 6 Part Three: Brand Advertising Strategy ................................................................................................... 9 VW Up advertising analysis ................................................................................................................ 9 Potential new advertising for VW Up ............................................................................................... 10...
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...Case #2: Globalizing Volkswagen; Creating Excellence on all fronts Global Business Management Vaishnavi Vanawala Sai Teja Boddupalli November 28th, 2015 COMPANY ANALYSIS Administrative Heritage The Volkswagen Group is a Germany-based automobile manufacturer with its headquarters in Wolfsburg, Germany. It is one of the world’s leading automobile manufacturer and carmaker in Europe. In 1930, Ferdinand Porsche, an Austrian born design engineer set up his own vehicle development center and that was foundation of Porsche AG, a leading sports car marker. In 1938, the government laid the foundation of the factory in Wolfsburg. However, before the plant started car production, it was a wartime production of military vehicles and airplane maintenance. In 1945, the British military government assumed control as a temporary trustee for next four years. It ordered production of the Beetle car but the quality was below the standard. In 1948, Heinrich Nordoff, an engineer took over. He focused on improving the quality of the car and focused on exporting cars and by 1951 company was exporting to 29 countries. During 1950s the sale continued to increase, driven by strong export sale to over 100 countries. The completely knocked down (CKD) production sites were set up first in Brazil and Ireland and later in Australia and South Africa. In 1964, they opened another site in Mexico. As the sales of the Beetle were increasing rapidly, there was a necessity to establish new plants in Germany...
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...contents Board of Directors chairman’s Letter Management Discussion and Analysis corporate Governance shareholder Information Directors’ Report Auditor’s Report Balance sheet and Profit & Loss Account Bajaj Auto Ltd. and its subsidiaries, consolidated Balance sheet and Profit and Loss Account 4 5 0 24 36 42 52 56 99 2 3 Board of Directors Rahul Bajaj chairman Madhur Bajaj Vice chairman Rajiv Bajaj Managing Director Sanjiv Bajaj executive Director D S Mehta Kantikumar R Podar Shekhar Bajaj D J Balaji Rao J N Godrej S H Khan Ms Suman Kirloskar Naresh Chandra Nanoo Pamnani Manish Kejriwal P Murari Niraj Bajaj Management Rahul Bajaj chairman Madhur Bajaj Vice chairman Rajiv Bajaj Managing Director Sanjiv Bajaj executive Director Pradeep Shrivastava President (engineering) Rakesh Sharma ceo (International Business) R C Maheshwari ceo (commercial Vehicles) S Sridhar ceo (two Wheelers) Abraham Joseph Vice President (Research & Development) C P Tripathi Vice President (corporate) Kevin D’sa Vice President (Finance) K Srinivas Vice President (Human Resources) N H Hingorani Vice President (commercial) S Ravikumar Vice President (Business Development) Auditors Dalal & Shah chartered Accountants cost Auditor A P Raman cost Accountant Bankers Central Bank of India State Bank of India Citibank N A Standard Chartered Bank Bank of America ICICI Bank HDFC Bank Registered under the Indian Companies Act, 1956 Registered office Mumbai-Pune Road Akurdi, Pune...
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