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7/27/2019 MCS Case1 Nurul Sari (1101002048)
http://slidepdf.com/reader/full/mcs-case1-nurul-sari-1101002048 1/3
Name: Nurul Sari
NIM: 1102048
Assignment 1 – Management Control System
Case 1-3: Xerox Corporation (A)
1. Outline the management control system at Xerox. What are the key elements that make
the system works?
Management control system is the system used by management to control the activities of
an organization. Every company has their own uniqueness management control system.
Xerox focus at customer satisfaction, quality of financial reporting, and also organizational
culture. Xerox using measurement system to combine the the financial aspect with the
operational targets. The measurement system begin with the planning process. Every units
in the business division and customer division make long run planning. Tht planning will be
combined with review and feedback session. With leadership through quality (including
competitive benchmark), management combine the operational performance with finanncial
performance such as market share, customer satisfaction, etc.
Business
Division
Customer
Operation
Unit UnitUnitUnit UnitUnit
Long Run
Planning
Long Run
Planning
ConsolidatedReviewFeedback
Leadership through qualityFinanncial
PerformanceOperational
Performance
7/27/2019 MCS Case1 Nurul Sari (1101002048)
http://slidepdf.com/reader/full/mcs-case1-nurul-sari-1101002048 2/3
Name: Nurul Sari
NIM: 1102048
Assignment 1 – Management Control System
There are three elements which make the system works:
a. Way of the measurements established.
The measurements are the combination of financial and operational targets. XeroxCorporation apply Leadership through Quality (LTQ) and competitive benchmarking as
main tools to measure operational efficiency. LTQ used in order to make sure that the
products meets the world class quality requirements while competitive benchmarking
helps the operational business units compare Xerox’s product, services, and business
practice with competitors.
b. The culture in Xerox Corporation.
The working culture in Xerox are employee expected to be proactive and use analytical
approach in solving problems. The employee’s involvement in achieving company’s
target is the biggest concern too. The other culture is open communication.
c. Unit controller of Xerox.
Another key element of success was the fact that unit controllers knew both the
financial and operational aspects of the business. A combination of all the elements
ensured the durability and high effectiveness of the management control system
implemented in Xerox.2.
2. What recent trends at Xerox do you see influencing the management control process?
Xerox has the strategy for increasing the leadership skill in the company, that is “leadership
through quality” . The principle of this strategy is meeting the customer’s requirement. This
stratesy focus at long term period so that it always need to be improved by the
management, so training and sharing of information are very critical to the implementation
of this strategy. The major component of this strtaegy are employee involvement,
competitive benchmarking, and the quality of improvement process. Competitive
benchmarking focus at quality, product reliability, and cost. It requires the integration of
competitive information, practices, and performance into decision making and
communication functions at all levels of the business.
3. In your opinion, how important are organizational culture and individual personalities in
the Xerox control process?
In every organization or company, organizational culture can be considered as a part of
development of that organization. Organizational culture sometime can represent the whole
organization, it also can predict the quality of output in the organization. The working
culture in Xerox are employee expected to be proactive and use analytical approach in
solving problems. The employee’s involvement in achieving company’s target is the biggest
concern too. The other culture is open communication. It means that individual personalities
are the main factor to build the best cultures. Because the drivers of that company is the
7/27/2019 MCS Case1 Nurul Sari (1101002048)
http://slidepdf.com/reader/full/mcs-case1-nurul-sari-1101002048 3/3
Name: Nurul Sari
NIM: 1102048
Assignment 1 – Management Control System
individual of that company so it is important to develop the character of the personnel in the
company too achieve the company’s goal.