...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. * 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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...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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...Continuing with the company/product you chose in week one writes a 6-7 paragraph analysis of the competition this product faces. What particular market segment is this product trying to reach? In your opinion, are they successful? How is the product being positioned? What type of outside influences do customers face when purchasing this product? What impact, in any, does it have on the consumer? The Ford Fusion Hybrid faces some pretty good competition from several direct and indirect competition. Hybrids are becoming more popular and some are going to choose based on the company and not the actual vehicle. Chevrolet, Honda, and Toyota have some good competitive models for those people who are being targeted. The environmentally minded and those wanting to cut their fuel consumption are also being targeted by the all electric cars on the market and the very high gas mileage vehicles offered by most manufacturers of vehicles. When looking at hybrids, the target markets include those people who are environmentally savvy and those who want value for their money. The ability to gain from the low fuel consumption combined with safety issues of driving in any conditions and in any type of traveling traffic is a goal feature to promote in those markets. However, many will still prefer the more comfortable knowledge of how the high mileage cars work and their reliability. People wanting to just lower their gas bills will be targets of these types of vehicles and though they may have...
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...Capital City Toyota Where affordability meets Luxury 1456 Pine Lake Rd Lincoln, NE 68507 402-467-5103 Confidential Memorandum DATE: Nov 11, 2013 TO: Akio Toyoda, FROM: Yanming Sheng SUBJECT: Group 2 Work Plan--Background I am working on background, which has two parts. I am starting with the history of the recall and ending with the results of the recall on sales and company image. In November 2009. The Toyota Company admitted to the defective accelerator pedal in some vehicles. Therefore, Toyota decided to recall the affected vehicles. Even if Toyota recalled the defective vehicles and did some compensation to customers, people had the doubt for safety of Toyota vehicles. Lexus is recalling approximately 3,800 late 2009 and certain 2010 model year Lexus LS 460 and LS 600h L vehicles in the U.S. to address an issue with the Variable Gear Ratio Steering (VGRS) system. (toyota, 2010) The first recall, on November 2, 2009, was to correct a possible incursion of an incorrect or out-of-place front driver's side floor mat into the foot pedal well, which can cause pedal entrapment. The second recall, on January 21, 2010, was begun after some crashes were shown not to have been caused by floor mat incursion. This latter defect was identified as a possible mechanical sticking of the accelerator pedal causing unintended acceleration, referred to as Sticking Accelerator Pedal by Toyota. (wikipedia, 2010) The recalls happened see like never end, however, the...
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...US News & World Report ranking and reviews list the following as the 5 top rated Hybrid cars. 1. 2016 Ford Fusion Hybrid 2. 2016 Toyota Avalon Hybrid 3. 2016 Toyota Camry Hybrid 4. 2016 Chevrolet Volt 5. 2016 Toyota Prius US News & World report ranking and reviews, new car rankings are based on a consensus of America's top automotive experts, as well as safety and reliability data. The reliability score contributing to the U.S. News rankings is the Predicted Reliability rating provided by J.D. Power and Associates. This score is based on the past three years of historical initial quality and dependability data from J.D. Power's automotive studies, specifically the Vehicle Dependability Study (VDS) and the Initial Quality Study (IQS).The rankings do not rely on our own tests or U.S. News editors' preferences. They combine two types of information: published reviews from respected automotive critics and safety and reliability data from third-party sources. Source: US News & World report. In analyzing the advantages and disadvantages of each cars technology, price, manufacturing, and the impact on the Environment, I find that the comparisons of the 5 different models may vary slightly, but the end goal of the manufacturer is to produce a vehicle that is high on Safety and the impact on the Environment. Hybrid cars, the combination of an electric and gasoline powered car, function based upon certain principles that govern their operation. All gasoline vehicles utilize...
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...Buying an SUV? New, Used, or Not at All? Abstract Purchasing a vehicle is the second largest purchase a household can make. There are so many questions to ask and variables to consider. Both quantitative and qualitative variables should be researched. Making the wrong choice can be a costly mistake. The Fields’ household has decided to look into purchasing a small SUV. They have narrowed it down to a new (2015) or used (2012) Chevrolet Equinox verses a new (2015) or used (2012) Ford Escape. Then again, depending on budgets, payments, and other multiple variables – they may not buy at all. The Fields’ are thinking of upgrading to a larger vehicle from very small, low miles per gallon, high cost to insure, but paid off 2007 Ford Mustang. Just a few of the variables they must consider are cost of the vehicle (monthly payments), depreciation, cost of insurance, gas mileage, safety features, and style. They must also consider the best fit for the family. Some of these variables will be more qualitative measures. They have a teenage son who plays basketball. He is very tall and needs to fit comfortably in the SUV. He also needs the extra room in the back to haul all of his basketball gear. Not to mention, he wants to look cool being dropped off at school. They also have a daughter who is in college. She likes the extra room to haul her friends around, and of course she wants a good-looking vehicle as well. Both Mr. and Mrs. Fields need the extra room for luggage...
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...North Country Auto. Inc. 1. Latar Belakang George G, Liddy salah sau pemilk North Country Auto, Inc sangat senang mempunyai sistem pengendalian baru. Dengan memiliki lima departemen (penjualan mobil baru dan bekas, pelayanan, bodi mobil, dan suku cadang). North Country Auto, Inc. Merupakan agen penjualan dan pusat pelayanan resmi dari Ford, Saab, dan Volkswagen. Dimana saat itu mulai populer Multiple Franchise pada tahun 1980. Perusahaan ini dimiliki oleh George Liddy dan Andrew Jones. Liddy membeli saham dealership dan Jones bergabung menjadi patnership sejak tahun 1988. Liddy memusatkan pekerjaan pada penjualan mobil, sedangkan Jones berkonsentrasi pada pengelolaan departemen suku cadang, servis, dan body shop atau “back end” dari dealership. Untuk mengatasi penjualan kendaraan yang lesu para pemilik melakukan strategi dengan memberikan potongan harga yang berkombinasi persediaan tinggi dimana kondisi ini diperlukan oleh para konsumen. Serta membuat alternatif sumber arus kas yang baru. 2. Struktur Departemen-North Country Auto, Inc. Penjualan Mobil Baru dan Penjualan Mobil Bekas Memiliki seorang manajer setiap depatemen mobil baru dan bekas. Dan memiliki enam agen penjual yang sama. Manajer penjualan mobil baru bertanggung jawab memberi masukan kepada Liddy untuk pemesanan mobil baru dan campuran persediaan serta berperan menyetujui besarnya harga penjualan dan penilaian nilai tukar tambah dalam transaksi konsumen. Servis Sumber utama pendapatan ...
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...R e se a rc h a n d Stat i s t i c s B r a n c h working paper 16/2009 Impact of the Global Economic and Financial Crisis over the Automotive Industry in Developing Countries UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION RESEARCH AND STATISTICS BRANCH WORKING PAPER 16/2009 Impact of the Global Economic and Financial Crisis over the Automotive Industry in Developing Countries Peter Wad Copenhagen Business School UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Vienna, 2010 This paper was prepared by Peter Wad, UNIDO consultant and backstopped by Nobuya Haraguchi, UNIDO staff member, Research and Statistics Branch, Programme Coordination and Field Operations Division. Iguaraya Saavedra provided administrative support. The designations employed, descriptions and classifications of countries, and the presentation of the material in this report do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations Industrial Development Organization (UNIDO) concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries, or its economic system or degree of development. The views expressed in this paper do not necessarily reflect the views of the Secretariat of the UNIDO. The responsibility for opinions expressed rests solely with the authors, and publication does not constitute an endorsement by UNIDO. Although great care has...
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...Alex Bernauer Block 2/3 World Studies Since the automotive industry constitutes more than 40% of North American trade, NAFTA saves the automotive industry immense amounts of money. The North America Free Trade Agreement is a trilateral agreement that encourages free trade between Mexico, Canada, and United States. The NAFTA agreement has affected the automotive industry by increasing the amount of U.S. automotive imports. It has also increased the amount of U.S. automotive exports to NAFTA partners and it has caused outsourcing in the automotive industry. The North American Free Trade Agreement came into effect on January 1, 1994. The president of Mexico, Carlos Salinas de Gortari, the prime minister of Canada, Brian Mulroney, and the president of the U.S., George H. W. Bush, signed NAFTA in 1992, which then required the legislatures of the three countries to approve it before it went into effect. After the legislatures passed the NAFTA agreement, it became in effect on January 1, 1994. Under NAFTA, the partnering countries agreed to eliminate and reduce most barriers to trade freely between the countries. Most of the United States automotive trade is done with Mexico. This is because the United States and Canada were already highly integrated following the U.S.-Canada Free Trade Agreement and a U.S.-Canada Auto Pact in 1965. Before the NAFTA agreement, Mexico had strict automotive decrees on foreign automotive production in Mexico. After NAFTA was signed...
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...The change of American automobile industry Bing Bai St. Thomas University Feb 20, 2013 Author Note Bing Bai, Department of Business, St. Thomas University This research was supported in part by a grant from the BUS 673 management writing & reporting class. Correspondence concerning this article should be addressed to Bing Bai, Department of Business, St. Thomas University, 16401 NW 37th Avenue, Miami Gardens, FL 33054 Contact: b0771276@stu.edu Introduction 2009, by the impact of the economic downturn in North America, the auto market is also showing a downward trend, the U.S. auto market, sales reached bottom in recent years, a decline of more than 20%. With the slow recovery of the economy in North America, as well as various stimulus policies play a role, so that the downward trend in remission. In 2010, total sales of U.S. automotive (car, SUV, MPV, pickup truck) reached 11,590,274, an increase of 11% year-on-year, U.S. vehicle sales remained year-on-year growth of 11% in January-July 2011. Undergo the shrinking of automobile market, although the United States rely on to curb the momentum of a sharp decline in the automotive market policy factors to a certain extent, the government "TM" subsidies just one pin short-term cardiac and unable to drive the stable recovery of the automotive market. The decline of the Big Three, but also to the...
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