Management and Universal Electric Essay Example

Galvor Company, a manufacturer of electronic equipment, was bought by Universal Electric Company in 1974. As part of the acquisition, Galvor became subject to Universal Electric's management control system, which required the submission of yearly business plans and periodic reports that were often laborious.

The business plan was a benchmark for the performance of unit managers. Universal Electric's financial reporting has been advantageous for planning, forecasting, and control. Universal Electric expects the same benefits for Galvor Company. However, Galvor initially opposed the new system due to significant changes, finding it expensive and time-consuming. Galvor previously only prepared their financial statements annually and struggled to submit the necessary reports on schedule. Additionally, employees exhibited inadequate skills and knowledge, and language and