CASE STUDY PRESENTATION

ON
RENDELL COMPANY
Presented By :-
Juhi Dhawan F 28
Nitesh Radadiya F 04
Richa Mistry F 42
Nimmi Saxena H 01
Shefali Banodiya H 11
 SUMMARY
The Rendell Company is a firm that has been profitable for 50 years,
but has seen its growth rate declining considerably.

It is organized in strategic business unit, each unit corresponding to a

product line, the marketing and manufacturing operations being
therefore the responsibility of each business unit.

Every business unit also includes a divisional general manager, and a

divisional controller.

Budgets and performance reports are the responsibility of the

divisional GM, and the divisional controller only helps as an assistant.

These points are then discussed with top management after a control of
the corporate control.
The issue is that the actual controller of the firm is not satisfied with
this organization and thinks that budgets and performance reports are
sort of biased by the relationship between the divisional general
manager and the divisional controller.

 Moreover, he is inspired by an organizational structure learned during

his visit at the Martex Company, and would want the divisional
controller to report directly to him instead of the general managers.

His assistant, former divisional controller does not agree and think that
GMs would not trust their controller, considered as spies
 QUESTIONS:-
1. Q
What is the organizational philosophy of Martex
with respect to the controller function? What do
you think of it? Should Rendell adopt this
philosophy?
Organizational philosophy of Martex with respect to the controller
function: -

They are sort of external assigned staff.

These controllers are located physically in the controller’s section of

the building instead of being in the divisional manager’s office.

The controller here has more loyalty toward the corporate controller
and less toward the division manager.
Not a good organization

Trust between controller and manager would disappear

The different business units would not fit in the firm

strategy.

The main task of control, would not be carried out anymore.

In Rendell Company, most managers have been working for more than
10 years.

They would then adopt a negative behavior that would only penalize
the firm.

So Rendell Company should not adopt this philosophy.

 2. Q

To whom should the divisional controllers report in

the Rendell Company? Why?
The divisional controllers should keep reporting to their general
managers.

Reasons :-

Conflict between division mangers and division controllers.

Division managers might isolate division controllers from the

management team.

Organizational change may lead to dysfunction and inefficiencies.

Trust between controller and manager would disappear

 3. Q
What should be the relationship between the
corporate controllers and the divisional controllers?
What steps would you take to establish this
relationship on a sound footing?
The relationship between corporate controllers and divisional
controllers should evolve through more communication.

Host a seminar with all the different divisional controllers of every

business units, and the corporate controller.

Developing communication tools between the two units would remind

the divisional controllers that they are not only working for the
division
general manager.

Meetings would be adequate in order to check the evolution of the

situation
 4. Q
Would you recommend any major changes in the
basic responsibilities of either the corporate
controller or divisional controller?
Changes in Responsibilities:-

Emphasis should be put on the necessity of truth in budgets and

performance reports for the company’s benefits.

Corporate controller should precise divisional controller’s tasks.

A reward system should be implemented that rewards controllers and

managers according to the performance of their unit.
THANK YOU