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Sales grew from 2.2 million new francs in 1960 to 12 million new francs in
1971
M. Latour became chairman of the board of Galvor and David Hennessy was
appointed as Galvor’s managing director.
Business plan prepared annually by each operating units.
Business plan was described in detail, and takes long time to approve.
The plan also contained a forecast, in less detail, for the fifth year too.
System was very inflexible, detailed system that required far too much time and too
many resources for a business unit of the size of Galvor.
For example, the controller, and his chief accountant spent 80% of their time
working on the system and reporting requirements for the corporate head office.
Lack of necessary know how and training to handle the requirements of the job.
Difference in Accounting principles and practice in France from the United States.
Plan for short term should be prepared, for 1 year, focused on KRA like sales
forecasting, inventory etc.
Should not report on monthly basis.
Proper cost allocation should be done
Working hours should be reduced.
Better trained employees ,familiar in both language.
Reduce employees in the controller department.
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