Behavioural Management Control ME2028

Group 4B

Anna Alexandraki, Ida Svederud, Johan Norén och David Stöckel

Question 1The proposal should have been reviewed by Axeon

before the initial analysis was conducted. There should have been a dialogue with the existing

production in the Netherlands of AR-42.They should have done the comparison with the

alternative, expanding the production in the Netherlands, already in the initial analysis.

The initial analysis seems to be very optimistic.

ME2028 BMC Anna Alexandraki, Ida Svederud, Johan Norén och David Stöckel.

Question 2

For Axeon as a whole organization it is more economic profitable to have one big production due to lower fixed costs and no start-up costs.

For Hollandsworth it could be justifiable to have their own factory due to the bonus system. However if the product didn't sell as predicted it could have given them the opposite effect.

ME2028 BMC Anna Alexandraki, Ida Svederud, Johan Norén och David Stöckel.

Question 3First board meeting:

Mr Van Leuven is positive because he encourage entrepreneurial behaviour and want to maintain creativity.

Due to personal limitations and a lack of direction Mr. Van Leuven takes to hasty decisions without gathering all necessary information available in the company.

ME2028 BMC Anna Alexandraki, Ida Svederud, Johan Norén och David Stöckel.

Question 3Second board meeting:

Mr. Leuven realized that the proposal was not in the best interest of the whole organization.

When the dispute between the subsidiary and parent organization arise, Mr. Leuven holds a low profile.

This to keep the subsidiary managers feeling responsible and influential.

ME2028 BMC Anna Alexandraki, Ida

Svederud, Johan Norén och David Stöckel.

Question 4

A negotiation should state the transfer price.Both the Netherlands and UK have bargain

power in our point of view. The top management can maintain the sense

of responsibility of the subsidiaries management, by not intervene in the negotiation.

ME2028 BMC Anna Alexandraki, Ida Svederud, Johan Norén och David Stöckel.

Question 5

High degree of market adaptation. Their strategy promotes a high level of

creativity and entrepreneurship within each subsidiary, due to decentralisation.

Axeon NV seems to lack clear common objectives and visions for the entire organization.

ME2028 BMC Anna Alexandraki, Ida Svederud, Johan Norén och David Stöckel.

Question 6Critical Success Factors:

Room for creativity within the companies (decentralisation)

Regional expertise

ME2028 BMC Anna Alexandraki, Ida Svederud, Johan Norén och David Stöckel.

Question 7Key Recurring activities:

Buy raw materialProduce industrial chemicalsLogisticSales

ME2028 BMC Anna Alexandraki, Ida Svederud, Johan Norén och David Stöckel.

Question 8

They have a very decentralized organization and control their subsidiary managers with financial result control, including incentive contracts.

The overall business strategy and finance are controlled at the top, but they could gain in efficiency and effectiveness by a clear decision making process.

ME2028 BMC Anna Alexandraki, Ida Svederud, Johan Norén och David Stöckel.

Question 9Regarding this specific case:

Mr Van Leuven should have the production in the Netherlands and open the dialogue so they can reach a financial agreement.

ME2028 BMC Anna Alexandraki, Ida Svederud, Johan Norén och David Stöckel.

Question 9For the future:

State a policy for the R&D and bigger investments, and really stick to it.

Share the knowledge between the subsidiaries and collaborate when it comes to new production projects.

ME2028 BMC Anna Alexandraki, Ida Svederud, Johan Norén och David Stöckel.