CASE STUDY AIRTEX AVIATION

One of the first steps is to identify Specific, Measurable, Acceptable, Realizable, and Timetable objectives at each level of the enterprise divisional and top level. The strategic view With new owners, the strategic view of AirTex Aviation must be redefined. Its autonomy is strengthened because managers can hire, fire and manage the salary schedule. In fact, we believe that division managers are not correctly trained to take vital decision in a first time. Key Decision Criteria We saw the different issues about the old management control system. She monopolizes the decisions and the power.

We saw the different issues about the old management control system. In front of the discrepancies of the current control system, Ted Richards and Frank Edwards decide to implement a system which improves transfer pricing, cost allocation and autonomy. To change it and implement a new system, Ted Richards and Frank Edwards took few key decisions on: Each department is responsible of its results, revenues and. There is a static hierarchy, without possibility of evolution. The goal is to make objectives in correlation with the management decision process.

This resolution suggests limiting the power of the accountant. However, some disadvantages and disturbances can result from the cade of this new management control system.

One of the first steps is to identify Specific, Measurable, Acceptable, Realizable, and Timetable objectives at each level of the enterprise divisional and top level.

Ted and Frank faced a problem when they take decisions of acquiring the company because of a lack of skills: This decision right is a variable to affect the moral of the managerial team and motivate them.

It will be easy to implement it with the policy which consists in decentralizing the decision process. An effort must be made to strengthen the links with stakeholders, in the goal to be in position to negotiate with them. First, there were problems for Ted with the accounting department: There are a number of issues before Franck and Ted set aittex the decentralized control system, which will be analyzed now. We are going to analyze the advantages and the disadvantages of this new control system.

  HALIMBAWA NG THESIS NG MAIKLING KWENTO

There is a static hierarchy, without possibility of evolution.

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Another source of motivation for the departments consists in offering them to manage cash by giving them receivables: Its autonomy is strengthened because managers can hire, fire and manage the salary schedule. So, Ted Richards and Frank Edwards need to be very adaptive and proactive.

case study airtex aviation

The latter need to reduce three basic issues: Data analysis There are a number of issues before Franck and Ted set up the decentralized control system, which will be analyzed now. The objective of the two partners was to look younger the management of Air Tex, to create a new control system provision support and information needed, and to lower the power of the accountant Sarah Arthur.

So, there is a difficulty to understand how Sarah Arthur built the financial statement and to replace an employee with an important role in the functioning avixtion Air Tex. Then, we hire as soon as possible in each department an accountant to create a Department Daily Report and accentuate the autonomy of each division. In fact, we believe that division managers are not correctly trained stud take vital decision in a first time. Furthermore, a training and development program will be interesting to improve the management skills of the staff.

  BPHIL THESIS OXFORD

case study airtex aviation

With new owners, the strategic view of AirTex Aviation must be redefined. The issue for Ted and Frank, future managers of Air Tex is to establish a growth over the long-term for the firm with a new strategic view. To change it and implement a new system, Ted Richards and Frank Edwards took few key decisions on:.

Airtex Aviation – Cost Control Study Case

Decisions are taking arbitrarily, without the search of a consensus. How can Air Tex grow in the first five year-period? Each department is responsible of its results, revenues and. Furthermore, they implemented a very changing control system without having time to train people. There is also an issue to aviatin the new accounting system, because Sarah Arthur decided to limit sthdy work in the company and they hire a new accounting clerk without experience.

Moreover, all the departments have a negative net income except the fuel line activity which employed unskilled employees. First, the new control system aims at providing accurate financial information to each divisional manager in order to encourage managers to make all the decisions themselves, by creating a feedback of their operations. Recommendations First, we think that Ted and Frank need to improve their knowledge about the plane sector.

The problem statement can be summarized as follows: Two managers recently graduated purchase Air Tex Aviation, a firm on the verge of bankruptcy. Therefore, this case wonders about the difficulties to implement it and the steps to change the management style.