Galvor Company Essays

1059 Words 5 Pages

History and Background:
The Galvor company had been founded in 1946 by M Georges Latour who continued as its owner and president until 1974. The company had acted as a fabricator, buying parts and assembling them into high quality, moderate cost electric and electronic measuring and test equipment. On april 1, 1974 Galvor was sold to Universal Electric Company for $4.5 million worth of UE's stock. M. Barsac replaced M.Chambertin as Galvor's controller in April of 1974.

The Business Plan
The business plan was the primary standard for evaluating the performance of unit managers and everything possible was done by Universal's top management to give the authority to the plan. Each January the Geneva headquaters of
…show more content…
Financial Statements
These condensed summary reports were followed by a complete set of projected financial statements; income statement, balance sheet and a statement of cash flow for the current year and for each of the next two years.

Management Actions
Some of the major management actions described in Glavor's 1976 business plan:
• Implement standard cost systems
• Revise prices
• Cut oldest low-margin items from line
• Standardize and simplify product design
• Create forward research and development plan
• Implement product planning
Among the objectives set for the control area, M.Barsac hoped to better distribute tasks, make more intensive use of IBM equipment and replace nonqualified employees with better- trained and more dynamic people.Therefore management described the specific actions to control employment, total assets and capital expenditures in case of reduction in sales and when these actions would be put into effect.
Approval of Plan
By midsummer the completed business plan was submitted to Universal headquarters and beginning in the early fall, meetings were held in Geneva to review each company's business plan. Before final approval of a company's business plan at the Geneva review meeting, changes were often proposed by Universal's top management. The approved business plan became the foundation of the budget for the

Related Documents