Submitted by: Submitted by nikoletta
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Category: Business and Industry
Date Submitted: 03/23/2010 08:30 AM
Declaration
This report is submitted as partial fulfilment of the requirements for Module MBA 406 Financial & Managerial Accounting at the European Business School London. We declare that this document embodies the results of the group’s work and that it has been composed by the group. Following normal academic conventions, we have made due acknowledgement of the work of others.
We have worked together as a group and we have all contributed equally and would therefore be graded as a group.
London, 27/11/2009
…………..…………………………… …………..……………………………
Adriana Arias Fouad El Ghzal
…………..…………………………… …………..……………………………
Nikola Pamler Balakrishnan Ramesh
Table of Contents
Declaration 2
Table of Figures 4
Executive Summary 5
Company profile of the VOLVO Group and the VOLVO Car Corporation 6
The background of the case study 8
Question one 10
Barriers to change 12
Question two 14
Similarities 15
Differences 16
Considerations for a change today 16
Question three 17
PKS 17
Current System (TCM) 18
Comparison 19
Effects of changes 20
Question four 21
The current VOLVO Cost Control System 21
Organizational functions 22
Question five 24
Target cost 24
Cost targets 25
Cost Requirement 26
Comparison and preference 26
Question six 27
The project gate system 27
The statuses on the cost requirements 30
Benefits of having these different statuses on cost requirements 32
Further development for the future 32
Conclusion 33
Bibliography 34
Appendix I 35
VOLVO group financial statistics – balance sheets 35
Appendix II 36
Key financial statistics, VOLVO Group 36
Table of Figures
Figure 1: VOLVO company profile 6
Figure 2: VOLVO's path to process 8
Figure 3: Balance sheet VOLVO 1986 – 1991 20
Figure 4: The three stages of product development activities and related cost control activities 21
Figure 5: Target costs 25
Figure 6: The new...