1 / 10

Axeon N. V.

Axeon N. V. . Behavioural Management Control ME 2028. Group A5 Martha Isabel Andersson Erika Bulger Marianne Myrberg. Question 1. Initial Analysis: No approach towards the possibility of producing AR-42 in the Netherlands.

okalani-brayden
Download Presentation

Axeon N. V.

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Axeon N. V. Behavioural Management Control ME 2028 Group A5 Martha Isabel Andersson Erika Bulger Marianne Myrberg

  2. Question 1 Initial Analysis: • No approach towards the possibility of producing AR-42 in the Netherlands. • Important to be able to compare the extension production with the production in the new UK factory • The proposal reflects more of a competitive thinking than a corporate overall thinking

  3. Question 2 The Best Interest of Axeon: • A new factory in England would guarantee the supply of the AR-42 to the costumers in case of plant shut down. • Growing potential with a new subsidiary which will reinforce the decentralisation. • “Matter of key importance for the morale and autonomy of the subsidiaries”

  4. Question 3 • Mr. Van Leuven’s behavior: In our opinion, Mr. van Leuven shows personal limitations and lack of motivation. • He probably felt unsure of taking such a big decision for the company, he does not want to take responsibility for his decisions and bear the consequences if something goes wrong.

  5. Question 4 • Transfer price for AR-42: • usual pricing: market- based and no mandatory selling • No market- based pricing in this case; costs will decrease if the production increases to 1000 tons • Production near full capacity • Marginal transfer pricing is possible • Negotiation not an option due to the current situation with many conflicts. • Dual rate pricing seems to be best solution for both sides.

  6. Question 5 Corporatestrategy: • Decentralisation • Subsidiary manager empowerment • Entrepreneurship

  7. Question 6 Critical success factors: • Extensive production line of industrial chemicals • High quality of products • Knowledge and expertise; trained personnel • Core competence in production of AR- 42 • AR-42 is a unique product

  8. Question 7 Key recurring activities: • Accounting system • Sales • Transfer pricing • Communication and negotiation

  9. Question 8 Centralisation/ Decentralisation in Axeon: • Vision: decentralisation • Results control is implemented • Rewarding system based on revenue • Subsidiary manager empowerment • Risk of sub-optimization and politicizing • In this case: • Centralisation shines through

  10. Question 9 Mr. van Lueven should: • Implement tone at the top • Trust in Ian’s capabilities • Accept proposal: “ key importance for the whole company […] because of its implications […] for the autonomy and morale of subsidiary management.

More Related