Galvor Company

Galv Ga lvor or Co Comp mpan any y Cas Case e

Group 1

Aryani Arya ni De Debo bora rant nty y K. Corina Heidy I. Hend He ndra ra Pa Panc nca a Jumran

One of the major French electronic industry company A family company founded by M. Georges Latour in 1946 As a fabricator ator  buy parts parts and assembly them into high quality, moderate-cost electric and electronic measuring. Sales growth from 2.2 million new francs in 1960 to 12 million 1971 Latou atourr believed in complete ownership and was personally involved in operations. In 1974 was sold to UE for $4.5 millions of UEs stock Latou atourr retained as chairman of Galvor board.

Require lots of resources (time allocation and

new personnel). HR problem (limitation in English and low level of well-trained staff ). Galvorhave to submit the same report like bigger operating unit. Diff erence accounting standard between France and US. Diff erent currencies and limitation of local system.

UE HQ USA

UE HQ EUROPE POU LET Manuf. Director

GALVOR BOARD

LATOUR

4 Fin anci al An alysts

Chairman

HENNESSY Managing Director

BARSAC Controller

PERRIER Data processing

BLANC Internal Control

VACANT

DUSSEX Chief Accountant

PAREL Gene ral Accoun tin g

CARDINAUX Billing & Customer Accounts

BOUDRY Controller

Legal

MATHEZ Cost Acc oun tin g

FORRESTE R Galvor Product LM

7 Line Man ag ers (LM)

SPECIALIST S

Business plan preparation for  operating unit 6 month lag period and then two year  projection

Sales Net Income Total assets Total employees Capital expenditures

Acts as Performance evaluation for unit manager

Galvor prepared BP

Budget for the following year due.

Objectives negotiated.

Approval of BP Jan

Feb

Mar

Apr

May

Jun

Geneva sets 2 year tentative objectives for operating units.

Jul

A ug

Sep

Oct

Nov

Meetings in Geneva. Review of BP. Requests for major B P

Objectives approved by Geneva and US HQ.

changes submitted.

Dec

Galvor¶s Galvor¶s performance performance in in July and August August Actual

July Budget

Varia arianc ncee

Actu Actual al

Augu August st Budget

Variance

In ent ry

20 1 0

1 5 80

430

2 06 0

16 0 0

460

Sales t date

3850

3900

50

4090

4150

60

Exhibit 2

Gal

r¶ss per r¶ perff rmance rmance in Sep Septemb tember er and Oct ber Forecast

Actual

Variance

September 

1973

2175

202

October 

1928

2175

247

Exhibit 4 & 5

( All figures in $000s)

Please Give Your Opinion

UE can implement historical standard for Galvor because it is quite easy to implement and less costly. UE need to develop employment standards for its operating unit. UE can implement ERP system for all or its subsidiary in order to pursue the comprehensive requirement. The new UEs implementation system for Galvor should be developed step by step. UE should provide help and solution for the company like Galvor which still newly implemented the UEs system