Vershire Company is a packaging company with several major divisions. This report focuses on the aluminum can division ‘s organizational structure and control systems, which highlights its performance management and budgeting process. Since competitors employ similar technology, firms within the industry strive to satisfy cost and quality specifications, as well as standard for delivery and customer relations.
Strengths and Weaknesses of the Planning System
Strengths: Vershire Companys forecasting process is detailed and precise in that each sales forecast is reviewed multiple times, criticized by different levels within the corporation, and is fine-tuned by Divisional Managers throughout. With the forecasting being completed by corporate level and also completed and reviewed by the Divisional Managers, the company gains a better overall projection of their future sales outlook, as well as the markets. The sales forecasts are prepared five years into the future, allowing the company to make important decisions now for future events. With detailed forecasts that predict the future for the next five years, the company is able to make strategic decisions and implement new business goals earlier to improve business practices and outcomes. Another strength of the planning system is having the head office controller staff visit each plant before plant budgets are submitted. These visits give Plant Managers an opportunity to explain their budgets and allow the controllers to
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