Case 1-3 : Xerox Corporation ( A)

Question 1 : Outline the management control system at Xerox. What are the key
elements that make the system work?
Xerox Corporation had gone through two different era in their management control
system which are the analytical era of the 1970s and after the quality cultural revolution
of the 1980s.
- During 1970s :
Accuracy and rigid systems were more important than listening to the customer
Too many controllers will make inadequate decision making process and
bureaucratic.
There was never enough data or analysis that make reporting and planning process
was very long and inaccurate.
- After revolution of 1980s :
Leadership through quality is the main management control system. Quality is a
strategic tool use to improve competitiveness and organizational effectiveness at
Xerox.
Competitive benchmarking enable Xerox identify the company that they believe to
be the best managed in the industry and use numbers from that company, either with
cooperation of that company or from published material as a basis of comparison.
Financial Executive Council(FEC) is the central focal point for the finance function
at Xerox. FEC had contributed in the formulation of management decision at the
operating unit which added more value to the management process and they set the
course for becoming a world class financial operation.
Proper goal setting - each operating unit had a set custom-designed targets.

- Key elements that make Xerox system work :

Employee actively participate in problem solving.
Open communication among workers and employers.
Well-trained people able to perform assigned duties.
Latest information technology facilitate information sharing and marketing.
Review and continually make an improvement based on customer requirement.
Make a standard for comparing internal performance and implement the best
practices to improve performances.

Question 2 : What recent trends at Xerox do you see influencing the management
control process?
There are several trends that have influenced the management control process in Xerox
Corporation :
Worldwide business network had make Xerox growth rapidly as possible.
Multinational corporation serving.
Find foreign partner who offered immediate entry into oversees market.
Leasing contact rather than equipment sale.
Joint venture
Form a partnership.
Ownership structure varied based on the country and the local partner.

Question 3 : In your opinion, how important are organizational culture and

individual personalities in the Xerox control process?
In my opinion, there have a strong connection between organizational culture and
individual personalities in the Xerox control process.
Organizational Culture
Open communication especially in problem solving process.
Can accept criticism for improvement.
Segregation of duties based on their work skill.
Have clear target to be achieve.
Individual Personalities
Vocal and actively engage in the problem solving process.
Willing to keep learning new things for the sake of the organization.
Always willing to accept assignments and trying to implement them in earnest.
The individual must be in line with the organization to achieve the targets that have
been set.

UNIVERSITI UTARA MALAYSIA

COLLEGE OF BUSINESS
SEMESTER 2 SESSION 2014/2015
BKAM 5023
MANAGEMENT ACCOUNTING AND CONTROL SYSTEM
INDIVIDUAL ASSIGNMENT :
CASE 1-3 : XEROX CORPORATION (A)
PREPARED BY :
NUR ILI NAJIHAH BINTI ADNAN
818855
PREPARED FOR :
PROF. MADYA DR. CHE ZURIANA
SUBMITTED DATE :
28 MARCH 2015