AIRTEX AVIATION CASE STUDY ANALYSIS

Ted and Frank faced a problem when they take decisions of acquiring the company because of a lack of skills: To change it and implement a new system, Ted Richards and Frank Edwards took few key decisions on:. Data analysis There are a number of issues before Franck and Ted set up the decentralized control system, which will be analyzed now. Each department is responsible of its results, revenues and Disadvantages: Moral Each division is an autonomous profit center. Moreover, all the departments have a negative net income except the fuel line activity which employed unskilled employees. We know that it is a problem because of the self-interested behavior of Sarah Arthur in the company since 20 years.

One of the most important decisions is to decentralize management decision. To change it and implement a new system, Ted Richards and Frank Edwards took few key decisions on:. We know that it is a problem because of the self-interested behavior of Sarah Arthur in the company since 20 years. It provoked a lack of information for the departments and of a motivation because they are not involved in the decision making process. So, an important information control is necessary to improve the reliability of Daily Department Reports. This resolution suggests limiting the power of the accountant. There is a static hierarchy, without possibility of evolution.

airtex aviation case study analysis

Moreover, all the departments have a negative net income except the fuel line activity which employed unskilled employees. Each division is an autonomous profit center. We know that it is a problem because of the self-interested behavior of Sarah Arthur in the company since 20 years.

airtex aviation case study analysis

First, there stidy problems for Ted with the accounting department: There is a kind of contradiction because Air Tex tries to implement a new control system which is very costly, where as the firm is on the verge of bankruptcy.

  MASTER THESIS SEITENRĂ„NDER

Because the firm is near of the bankruptcy, Ted and Franck design a new aviatikn term strategy which reduces costs, decentralizes management decision process; implements new management styles and defines clear way to growth and move in the aviation market.

To move from a system where they are assisted and have without responsibility to a system which gives them more autonomy, take a long time. To change it and implement a new system, Ted Richards and Frank Edwards took few key decisions on:.

We saw the different issues about the old management control system. The issue for Ted and Frank, future managers of Air Tex is to establish a growth over the long-term for the firm with a new strategic view.

Then, there is a difficulty to understand the accounting system and the economical situation is exigent. Moral Each division is an analysos profit center.

AirTex Aviation Case by Thao Nguyen on Prezi

So, there is a difficulty to understand zviation Sarah Arthur built the financial statement and to replace an employee with an important role in the functioning of Air Tex. Each department is responsible of its results, revenues and. Get Full Essay Get access to this section to get all the help you need with your essay and educational goals. Indeed, the figures in the balance sheet for Air Tex aviation appear to be very disorganized. That observation explained the controversy which appeared about the management of receivables by the divisions.

Airtex Aviation – Cost Control Study Case

Two managers recently graduated purchase Air Tex Aviation, a firm on the verge of bankruptcy. With new owners, the strategic view of AirTex Aviation must be redefined.

Cxse are going to analyze the advantages and the disadvantages of this new control system. Its autonomy is strengthened because managers can hire, fire and manage the salary schedule. An effort must be made to strengthen the links with stakeholders, in the goal to be in position to negotiate with them. Furthermore, a training and development program will be interesting to improve the management skills of the staff. How can Air Tex grow in the first five year-period? So, it decentralizes operations to make each activity a profit centre and group them by departments.

  LANCIA THESIS S85

airtex aviation case study analysis

There is also an issue to implement the new accounting system, because Sarah Arthur decided to limit her work in the company and they hire a new accounting clerk without experience. Then, we hire as soon as possible in each department an accountant to create a Department Daily Report and accentuate the autonomy of vaiation division.

What appears to be the problem in Air Tex is linked to business which is linked with the state of mind of the staff: The control process gives performance results of divisions anqlysis month.

Another source of motivation for the departments consists in offering them to manage cash by giving them receivables: The decentralization of the decision process is a good way to facilitate it and help to develop relationship between stakeholders and staff. It provoked a lack of information for the departments and of a motivation because they are not involved in the decision making process.

One of the most important decisions is to decentralize management decision. This resolution suggests limiting the power of the accountant. She monopolizes the decisions and the power. Then, Ted felt a problem linked to the personnel work ambiance, their seriousness and more over their professionalism.