Xerox Case Presentation

Group Members

Ashutosh : F-11 Bhavna B : F-12 Bhupendra V :F-13 Bhuvan M : F-14 Chougale R : F-15 Devina J : F-16 Ashmant T : M-11 Awadhesh K : M-12 Bhavik S : M-13 Bhushan D : M-14

Introduction Bhupendra Vira

Roll No:F-13

COMPANY OVERVIEW

Positioned as the global multinational document company

Serving the global document processing market through products ranging from copiers to workstations

Facilitating global financial services market through operations like insurance, financing of instruments etc.

Business existence in over 130 countries

The Success Story Annual sales growth exceeded 25% from

year 1946 to 1973 in plain paper copier business

Annual growth of earning exceeds 35% in the same period

Brought about an early revolution by introducing 914 plain paper copiers

The copying equipment business achieved the growth from 20 million in 1959 to 9.5 billion in1965 just within 6 years

Created a global network through the partnership model like Rank Xerox and Fuji Xerox

HURDLES

At the end of 70’s problems started due to the entry of domestic and foreign companies

Market share of Xerox fell from 96% to 45% in same period

Company was in competitive pressure ,due to introduction of low range copiers by Japanese firms

The Japanese companies were selling their equipments at Xerox’s manufacturing cost

Global PartnershipsBhushan Dhade

Roll No: M-14

Global Partnerships Rank Xerox Limited:

- 51/49 Joint venture established in 1969- Europe, Africa and parts of Asia

America Customer Operations:- Operated in Canada, South & Central America, China

Fuji Xerox:- 50/50 Joint Venture- Operated in Japan and other Asia Pacific

regions

FECBhuvan Motta

Roll No: F14

FINANCE & CONTROL FUNCTIONS The 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

FEC evolved in parallel with the start of LTQ & benchmarking activities

FINANCE & CONTROL FUNCTIONS 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

Organisation of XeroxBhavik Sheth

Roll No: M-13

Organisation of Xerox9 business divisions3 geographic customers operation

divisionPrimary focus was on business

management levelDivision responsible for research and

technological development, manufacturing, sales, services & administration

Financial Organisation of XeroxDocument processing financial

organization was a modified matrix organization

Direct reported to the general manager and dotted line relation to corporate finance

Business division engaged in product development & manufacturing were managed globally

Financial Organisation (..contd)Customer operation division were

organized geographicallyThe MCS concentrated on

responsibilities and performance of all 12 divisions

Sub units of each business units reported directly to general manager of division and dotted to the division controller

Development & Manufacturing

Awadhesh KumarRoll No: M-12

Development & Manufacturing 1992: different functions of the organization

integrated into 9 business divisions A core Corporate Strategic organization

provided contracted support to the divisions Two modes of operation for the development

or manufacturing facility: If annual production >= 90% of their output for

specific division, then included in that business group

If supported multiple business groups, then placed in Corporate Strategic Services Group

External Financial Reporting Xerox followed the legal organizational

structure Fuji Xerox being an affiliate company, report

contained only results of equity investment in it Operational management accounting

reports or performance reporting focused on Business division results

Match accountability & responsibility by operating unit within a business area

Both financial & management control reporting systems functioned in parallel

Management Control Measures taken at Xerox

Rajendra Chougale Roll No: F-15

Leadership Through QualityFundamental principle is meeting

customer requirementQuality meeting is the main focus Improvement in competitiveness and

organizational effectiveness through quality

LTQ plan was fully integrated business process looks for improvement in processes as well as products

Major components of LTQ are:-  1) Employee involvement2) Competitive benchmarking3) Quality improvement process

Leadership Through QualityContd…

Competitive BenchmarkingContinuous process of measuring

Xerox’s product, services, etc against competitors

Main goal is superiority in all areas like : Quality, product reliability and cost

Learning experience where the Best practices are observed and measured to create targets for future

employee involvement is necessary and is linked to each operating unit’s business plan

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

Competitive Benchmarking Contd…

Quality Improvement ProcessReview and continually improve all

internal processes Follow processes which focuses on

meeting customer requirements

Recent trends influencing the Management Control System

AshutoshRoll No: F-11

The Old Way

Till 1987, the monthly process reporting included complete financial analysis

Operating under very tight time schedule

All operating activity statistics were to be provided by all the units for corporate reporting requirements

The New Way

Report consists of specific data of key operational statistics

Significant reduction in number of people involved in the reporting process

Evolution of informal reporting system with emphasis on open and honest communication, trust & no surprises

Organizational restructuring In 1992 the functions of the organization

were integrated into 9 business divisions Core Corporate Strategic Services

Organization provided support to the divisions, in case of facilities supporting multiple business group

Matching of accountability and responsibility by operating unit within a business area

Parallel functioning of financial and management control reporting systems

Importance of Individual Personalities and Organizational Culture

Devina Jaca Roll No: F16

Employee Involvement in LTQ Xerox developed a corporate

revitalization program called LTQ Program driven by senior

management Over 100,000 employees were

trained over a three year periodEmpowered employees started a

number of initiatives, many involving environmental and quality improvements, yielding in added profits each year

Role of Individual Personalities in MCS

Proactive role played by the Xerox people to make the company culture work

Active participation of business controllers in decision making

Control function works closely with the line management

FEC evolved to obtain greater involvement of finance executives

Importance of Organizational Culture

Free expression of opinions and ideas

Informal channel of reporting

Regular talks between supervisors and their subordinates

Unit controllers knew financial and operational aspects of their business units

ReportingBhavna B.

Roll No: F12

Reporting Until 1987, Reporting process – Complete

financial package Reports were due on a very tight time

schedule FEC – Monthly Financial results in full

detail from all units not necessary Units reported Specific, but limited, data Value of information did not change Significant reduction in number of indirect

people involved in the process

Reporting

Informal Reporting System had evolved Talks were Informative and centered

around Problems and Business Risks FEC – Maintained a standard of “No

Surprises” and Promoted Trust among the Controllers

Informal Network – Open discussion of issues

Informal Channel of Reporting complemented the Formal Channel

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