The Carey Plant
Strategic Audit Report
Submitted by:
Sheikh Ehsan Ul Haque (BS383241)
Instructor:
Mr. Moez Allidina 1. Current Situation
A. Past Corporate Performance Indexes
The Gardner group was a machine manufacturing firm headquartered in England. They manufactured machines used by furniture producers. The Gardner group was known for their production efficiency. They acquired a high quality machine parts producer called the Carey Manufacturing, for $35,00,000. This was a backward vertical integration, as now the Gardner group could make their own machine parts. This acquisition was done on Ralph Brown’s (Vice president Finance) advice.
• The Carey plant was highly profitable before the acquisition by the Gardener Company. …show more content…
This was because Carey was known to play a passive role, and was not much active in the operations of the plant. He would delegate his tasks to the department managers, and seemed to be uninterested. Hence, Carey was relieved of his duties as the Plant manager, and made a special consultant. A committee setup to find a new plant manager suggested appointing Bill May, who held an MBA degree, and currently worked in the Finance department at Gardner’s company. Ralph Brown, the Vice President Finance believed that Bill had the drive, passion and cost saving skills that were essential for the inefficient and aged Carey Plant. Bill was reserved about this offer, as he believed that he had very little technical and operational knowledge that is necessary for managing the Plant. He was also concerned about the fact that he did not know the department managers very well. Bill believed that the majority of the Vice Presidents would like seeing him fail, as they were opposing the idea of appointing a staff person as the plant manager. Bill did not know what was expected from him, and would he get in return.
iv. Current Policies
• The Carey Plant Management aims to increase efficiency of the plant, as sales are increasing but the profits are in a declining trend.
• They aim to hire a passionate plant manager to increase control over it, and improve financial conditions.
• The aim to setup a centralized HR system, where the managers do not have to report to multiple bosses. A streamlined HR structure would eliminate any chances of conflict of interests among the strategic level leaders controlling the same department or manager.
2. Corporate Governance
A.
Strategic Audit Report
Submitted by:
Sheikh Ehsan Ul Haque (BS383241)
Instructor:
Mr. Moez Allidina 1. Current Situation
A. Past Corporate Performance Indexes
The Gardner group was a machine manufacturing firm headquartered in England. They manufactured machines used by furniture producers. The Gardner group was known for their production efficiency. They acquired a high quality machine parts producer called the Carey Manufacturing, for $35,00,000. This was a backward vertical integration, as now the Gardner group could make their own machine parts. This acquisition was done on Ralph Brown’s (Vice president Finance) advice.
• The Carey plant was highly profitable before the acquisition by the Gardener Company. …show more content…
This was because Carey was known to play a passive role, and was not much active in the operations of the plant. He would delegate his tasks to the department managers, and seemed to be uninterested. Hence, Carey was relieved of his duties as the Plant manager, and made a special consultant. A committee setup to find a new plant manager suggested appointing Bill May, who held an MBA degree, and currently worked in the Finance department at Gardner’s company. Ralph Brown, the Vice President Finance believed that Bill had the drive, passion and cost saving skills that were essential for the inefficient and aged Carey Plant. Bill was reserved about this offer, as he believed that he had very little technical and operational knowledge that is necessary for managing the Plant. He was also concerned about the fact that he did not know the department managers very well. Bill believed that the majority of the Vice Presidents would like seeing him fail, as they were opposing the idea of appointing a staff person as the plant manager. Bill did not know what was expected from him, and would he get in return.
iv. Current Policies
• The Carey Plant Management aims to increase efficiency of the plant, as sales are increasing but the profits are in a declining trend.
• They aim to hire a passionate plant manager to increase control over it, and improve financial conditions.
• The aim to setup a centralized HR system, where the managers do not have to report to multiple bosses. A streamlined HR structure would eliminate any chances of conflict of interests among the strategic level leaders controlling the same department or manager.
2. Corporate Governance
A.