Galvor Company

Group assignment 1- GALVOR COMPANY

EXECUTIVE SUMMARY:

The main purpose of this paper is to understand the effectiveness of the reporting levels of Galvor Company, which is a subsidiary of Universal Electric. The paper goes through the key success factors, advantages and disadvantages of using UE’s planning and reporting system, and recommendations for improvements to the reporting system. Through analysis, the key success factor for Galvor was that although the organization was relatively small with minimal reporting requirements, they showed adaptability to UE’s financial reporting system by submitting the Business plan as well as the 14 monthly reports. The implementation of this system by UE helps ensure consistency in performance measurement in every business unit since monthly budget reports are required to be submitted and these reports are used to compare and analyse results. Even though Galvor was using the same reporting system as UE, it was a burden because of the lack of staff, the difference in accounting practices and language barriers. Furthermore it can be noted that this reporting system was a time consuming process and a costly process for Galvor since it cost them more to write the business plan than finding efficient methods on improving their reporting system. To better improve this system for both companies, there needs to be a better communication strategy established to ensure that both companies realize each other’s needs and requirements. Also Universal Electric needs to work on initiating a better reporting system which will better suit to the size of each subsidiary company, then trying to get the smaller companies to meet with their method of complicated reporting system. This paper helps understand how a small company like Galvor with very different management system has to change and adapt to a complex and formal reporting system used by the other company and suggests ways that can be used to improvise the reporting system to...