Behavioural Management Control

Group C7Alex Aizpurua

Alice NicodConstance RenardGuillaume Favreau

Maxime Ernoult

Confusing!

Undiscovered market in the UK?

Too confident with the price,

what is he going to do if he can’t sell everything?

Difficult production and

Ian doesn’t know too

much about that

Personal experience in ”Arregui S.A”.

Always something goes wrong in a production line implementation

process at the start phase.

Lose the

control of the

company

Self pride

feeling, a

nationalistic

feeling

Focus only in

one market;

too much risk

Reluctant to

invest money

in other

factory

Hidden

reasons that

we don’t reach

Producing in

Netherland -

> decrease

fixed

&variable

costs

Extend the

company

More profits

for the

company

Promoting

decentralizat

ion

Axeon

boa

rd o

f

dire

ctor

mee

ting

Friendly. ”Decision seems to be clear”

1 week

Doubts appears :

ask for justification

on saleforecast

Call t

o Ia

n

1 week

2nd

mee

ting

Distant and

indecisive

Mr N

oble

’s

Lette

r

Event

1 month

Ask for

more stud

y

What is he going to do

?

Stud

y

conc

lusio

n

Van

Leu

ven

b

eh

avio

ur

WH

Y ? •Respects

company policy with subsidaries•Make money•High trust in Ian

•Fear of losing Mr Noble / Ian•Becomes aware of the importance of the project

•Wants to be sure•Listens his board of director

•Doesn´t know what to think•Doesn´t want to disapoint anybody

Transfer Price

Estimation (£/ton) + - Concl

Market Price (=Hollandworth price)

2475 (with working capital

190K£)

The same for hollandsworth. NO

Negotiated DependsVery efficient if high concurrency

Negociation cost time.Accentuation of the conflicts.Unequal.

NO (No bargaining power)

Marginal cost

2060

Easy to determine the final contribution generated by the product.

Pb with responsility of the center.Few information on centers performance.

NO (fixed costs not shared)

Full cost2460

(with working capital 160K£)

Can see the viability.Easy to implement.

Based on working cost estimation.No margin.

YES

Cost Plus2952

(with 20% margin)

Security marginEasy to implement.

Based on working cost estimation. NO

• Launch new projects: Research, Development, Implementation, Production Commercialization, Publicity Precise processes must be established –

Each member of Axeon must be aware of them

Aim: Get some new market share on new products Increase competitiveness of Axeon’s subsidiaries on the global market Get some quality’s standards and more transparency towards customers

Decentralisation Centralisation

Geography One Holding with 24 subsidiaries

Geography Assigned territories – Don’t act as

same company’s subsidiaries

EconomyEach factory is responsible for its

sales

EconomySubsidiaries keep on being

minoritory regarding the holding company

Decision PowerCommission to each factory’s

manager

Decision PowerEvery final decision is made by the C.E.O (Anton von Leuven)

A decentralised company with a centralised management

1. Start shipping from Holland – Risky strategy on a long term period with uncontrollable extern factors• Rising oil prices high shipping costs • Rising raw material prices high manufacturing costs for

AR-42 products2. Sales assessment to evaluate if they could reach their objective

of 400 tons. 3. Buy or build a subsidiary in UK follow Axeon’s strategy about

decentralisation

He should follow Axeon’s Strategy (in term of decentralisation)