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Xerox Corporation (B)Name of Group
Members:
Bhola JaiswalBhautik
Talsania( Absent)Dipesh MehtaDharmesh
Patel(Absent)Dixit Nagar
IntroductionThe document company.Business Existence over130 countries.The multinational corporation serving the global
document processing & financial services marketsProducts: manufacturing & developing the
copiers,duplicators,FAX products, workstations, computer software,& other related equipments in over 130 countries.
Financial Products:Insurance,Equipment financing, Investment & banking
Innovation & DevelopmentThey developed, manufactured and marketed copiers
and duplicators, scanners, computer software's and other related equipments.
They supplying all above articles in more than 130 countries.
The Success HighlightsFrom year 1946 to 1973 annual sales growth
exceeded 25%.Annual growth of earning exceeds 35%.The above achievements were in plain paper copier
business.In the year 1959 the company introduced 914 plain
paper copiers that was early revolution in this business.
Conti…The copying equipment business achieved the growth
from 20 million in 1959 to 9.5 billion in1965 just within 6 years
In 1990 the world copy business was over 900 billion copies.
HurdlesUS firms (IBM & KODAK) & Japanese
firms(Canon, Minolta) entered. 50/50 JV with the Rank Org.PLC - market excess to
Europe, Africa & Middle East.The partnership with the Fuji Photo Film Company -
access to Japan & Asia.Concerned with US govt. Antitrust suit than with the
market entry with the domestic & foreign competition.
Conti..Between 1970-1980 market share & revenues fell from
96% to 45%.The Japanese attacked the low & medium range of the
copier market. They were selling the products at the Xerox’s manufacturing cost.
David Kearns became the chairman in 1982.
Attempts for SurvivalXerox developed a corporate revitalization plan
called “Leadership through quality”.Plan was developed to meet customers requirements.Senior management drives this LTQ plan with the
help of employees to focus on the process as well as products.
LTQ plan was fully integrated business process.Major components of LTQ are:- 1)Employee involvement 2)Competitive benchmarking 3)Quality improvement process
Change Leadership & Its ImpactIn 1991 KEARNS passed the leadership of Xerox to
PAUL ALLAIRE.Customers satisfaction level increased in every
market served by company.Revenue rose by 9% to record $13.6 billion.Profit increased by 23% to $599 million.ROA improved by over 2 points to 14.6%.$1.1 billion in cash was generated.
Organization of Xerox9 business divisions.3 geographic customers operation division.Primary focus was on BUSINESS MGT LEVEL.The divisions responsible for Xerox offering:-
research and technological development, manufacturing, sales, services & administration.
Dotted line relationship between business unit controllers and GM.
Document processing financial organization was a modified matrix organization.
Conti….The business division engaged in product
development & manufacturing.Customer operation division were organized
geographically &manage customer relationship.The MCS concentrated on responsibilities and
performance of all 12 divisions.
Competitive BenchmarkingBenchmarking is learning experience where the best
practices are observed and measured to create target for future achievements.
Benchmarking is a part of total quality leadership program.
It requires competitive data, practices, performance, decision making and communication at all levels of organization.
Conti…Benchmarking is continuous process of measuring
Xerox's products, services and business practices against the toughest competitors or market leaders.
The goal is superiorities in all areas like-Quality Product, Reliability & cost.
Finance & Control FunctionsThe central focal point for the finance function of
Xerox was FEC.The membership consisted of senior corporate
finance staff & CFO’s from the major Xerox operating organizations.
FEC set the course for becoming a world class financial operation based on their benchmark study.
They felt controllers could contribute in the formulation of mgt. decisions at operating unit.
Conti…FEC evolved in parallel with the start of LTQ &
benchmarking activities.The key to value added concept was in helping line
managers to make more perfect business decisions.Building trust in Xerox finance community.Meet once a quarters for two days and discussions on
wide range of financial matters.Many members had been in the FEC for 10 yrs.They know each other well and freely express their
ideas and opinions. as
Conti….FEC evolved in parallel with the start of LTQ &
benchmarking activities.The key to value added concept was in helping line
managers to make more perfect business decisions.Building trust in Xerox finance community.Meet once a quarters for two days and discussions on
wide range of financial matters.
Some Recommendation
Domestic Transfer Pricing Using the market price can help Xerox better respond
to a competitive pricing threat.Less arbitrating of transfer price disputes by
corporate controller.
Multinational Transfer Pricing Current method may not conform to foreign laws and
carries a greater taxation risk than solutions tailored to each country.
Use outside consultants
Transaction Exposure Transaction currency exposure is best handled
through centralized coordination of the corporate’s overall hedging needs.
Compare budgets and actual results using the same metric
Initial-initial, projected-projected, or ending-ending
Economic Exposure Real exchange rate changes require important
strategic and operating decisions.
Performance Evaluation of Foreign Subsidiaries
Evaluating its business units according to their legal entities makes local subsidiary managers see more of a direct link between their decisions and actions, including related evaluative feedback.