Xerox Case Study Essay

1271 Words Apr 11th, 2012 6 Pages
Xerox Corporation

Question 1
Outline the management control system at Xerox. What are the key elements that make the system work?
During 1970s, the management system of the company was rigid and accuracy was emphasized, which compromised the management control quality and also lead to unnecessary bureaucracies. In addition, customers’ satisfactions were also neglected due to the bureaucracy occurred. Then, the company’s targets were set unrealistically by the numbers people i.e. the managers who set the goals. To make it worse, the targets made were based on inadequate data and analysis which ignores the internal and external factors of the company. Besides, the reporting and planning process were very long and
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The Finance technicians have to work together with the Marketing and Technology groups in order to realize the LTQ objectives.
Xerox has improved the information system management and standardized reporting formats in rectifying the problems. The Finance Executive Council (FEC) was established as the central focal point for Xerox’s finance function and decision making while working closely with the line management of Xerox (i.e. from an accounting policy group to value-added policy group). FEC was also functioned as the development centre for the company’s financial human capital talent, and recognized them via the thinking-tank projections for policies and strategic considerations. Besides, FEC also promoted trust in the Xerox finance community via a structured discussion but under an informal atmosphere.

Question 2
What recent trends at Xerox do you see influencing the management control process?
Previously, during 1970s, Xerox had a culture that emphasized on rigidity and accuracy within their system. This had led to quality compromise for the customers and long process of bureaucracy within the company. They also set unrealistic targets in regardless of the quality control, customers’ satisfaction and other related factors that would affect the company’s market share.
However, in 1982, a corporate

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