Xerox Corporation (B)Name of Group

Members:

Bhola JaiswalBhautik

Talsania( Absent)Dipesh MehtaDharmesh

Patel(Absent)Dixit Nagar

IntroductionThe document company.Business Existence over130 countries.The multinational corporation serving the global

document processing & financial services marketsProducts: manufacturing & developing the

copiers,duplicators,FAX products, workstations, computer software,& other related equipments in over 130 countries.

Financial Products:Insurance,Equipment financing, Investment & banking

Innovation & DevelopmentThey developed, manufactured and marketed copiers

and duplicators, scanners, computer software's and other related equipments.

They supplying all above articles in more than 130 countries.

The Success HighlightsFrom year 1946 to 1973 annual sales growth

exceeded 25%.Annual growth of earning exceeds 35%.The above achievements were in plain paper copier

business.In the year 1959 the company introduced 914 plain

paper copiers that was early revolution in this business.

Conti…The copying equipment business achieved the growth

from 20 million in 1959 to 9.5 billion in1965 just within 6 years

In 1990 the world copy business was over 900 billion copies.

HurdlesUS firms (IBM & KODAK) & Japanese

firms(Canon, Minolta) entered. 50/50 JV with the Rank Org.PLC - market excess to

Europe, Africa & Middle East.The partnership with the Fuji Photo Film Company -

access to Japan & Asia.Concerned with US govt. Antitrust suit than with the

market entry with the domestic & foreign competition.

Conti..Between 1970-1980 market share & revenues fell from

96% to 45%.The Japanese attacked the low & medium range of the

copier market. They were selling the products at the Xerox’s manufacturing cost.

David Kearns became the chairman in 1982.

Attempts for SurvivalXerox developed a corporate revitalization plan

called “Leadership through quality”.Plan was developed to meet customers requirements.Senior management drives this LTQ plan with the

help of employees to focus on the process as well as products.

LTQ plan was fully integrated business process.Major components of LTQ are:- 1)Employee involvement 2)Competitive benchmarking 3)Quality improvement process

Change Leadership & Its ImpactIn 1991 KEARNS passed the leadership of Xerox to

PAUL ALLAIRE.Customers satisfaction level increased in every

market served by company.Revenue rose by 9% to record $13.6 billion.Profit increased by 23% to $599 million.ROA improved by over 2 points to 14.6%.$1.1 billion in cash was generated.

Organization of Xerox9 business divisions.3 geographic customers operation division.Primary focus was on BUSINESS MGT LEVEL.The divisions responsible for Xerox offering:-

research and technological development, manufacturing, sales, services & administration.

Dotted line relationship between business unit controllers and GM.

Document processing financial organization was a modified matrix organization.

Conti….The business division engaged in product

development & manufacturing.Customer operation division were organized

geographically &manage customer relationship.The MCS concentrated on responsibilities and

performance of all 12 divisions.

Competitive BenchmarkingBenchmarking is learning experience where the best

practices are observed and measured to create target for future achievements.

Benchmarking is a part of total quality leadership program.

It requires competitive data, practices, performance, decision making and communication at all levels of organization.

Conti…Benchmarking is continuous process of measuring

Xerox's products, services and business practices against the toughest competitors or market leaders.

The goal is superiorities in all areas like-Quality Product, Reliability & cost.

Finance & Control FunctionsThe central focal point for the finance function of

Xerox was FEC.The membership consisted of senior corporate

finance staff & CFO’s from the major Xerox operating organizations.

FEC set the course for becoming a world class financial operation based on their benchmark study.

They felt controllers could contribute in the formulation of mgt. decisions at operating unit.

Conti…FEC evolved in parallel with the start of LTQ &

benchmarking activities.The key to value added concept was in helping line

managers to make more perfect business decisions.Building trust in Xerox finance community.Meet once a quarters for two days and discussions on

wide range of financial matters.Many members had been in the FEC for 10 yrs.They know each other well and freely express their

ideas and opinions. as

Conti….FEC evolved in parallel with the start of LTQ &

benchmarking activities.The key to value added concept was in helping line

managers to make more perfect business decisions.Building trust in Xerox finance community.Meet once a quarters for two days and discussions on

wide range of financial matters.

Some Recommendation

Domestic Transfer Pricing Using the market price can help Xerox better respond

to a competitive pricing threat.Less arbitrating of transfer price disputes by

corporate controller.

Multinational Transfer Pricing Current method may not conform to foreign laws and

carries a greater taxation risk than solutions tailored to each country.

Use outside consultants

Transaction Exposure Transaction currency exposure is best handled

through centralized coordination of the corporate’s overall hedging needs.

Compare budgets and actual results using the same metric

Initial-initial, projected-projected, or ending-ending

Economic Exposure Real exchange rate changes require important

strategic and operating decisions.

Performance Evaluation of Foreign Subsidiaries

Evaluating its business units according to their legal entities makes local subsidiary managers see more of a direct link between their decisions and actions, including related evaluative feedback.