Manualisation Case
Essay Preview: Manualisation Case
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CEO Shinya Ishizu wants to make sure that the reforms and restructuring he has initiated over the last few years are embraced by the entire organization. He needs to find ways to change the mindset of executives and employees and reform the management system to fit with AGCs operations. AGC has moved from being organized and operated according to geographical regions into one organized along product lines to foster international cooperation. The main intent was to increase the value to shareholders and to achieve this, the company wanted to adopt a method of resource allocation based on the Economic value added by each business unit. This was expected to allocate resources as per the value added by each business unit. The CEO Shinya Ishizu wants to make sure that the reforms and restructuring he has initiated over the last few years are embraced by the entire organization. He needs to find ways to change the mindset of executives and employees and reform the management system to fit with AGCs operations.
Questions to be analyzed:
How effective was the EVA (Economic value added ) methodology for resource allocation and managerial incentives ?
How an EVA methodology and other reforms contribute to a firms goal of becoming a truly international company?
Analyzing the methodology employed in calculating the WACC across business units.
Commenting whether a Cash Flow method which relies less on accounting manipulations a better method of allocating resources than the EVA method.
Examining the role of Corporate Governance in multinational corporations and how the relationship with banks impacted the corporate governance practices at Asahi Glass.
What are the primary obstacles facing Izishu as he tries to transform Asahi Glass?
Recommending changes if any in the EVA method being implemented by Asahi Glass.