Case Map for Horngren, Foster & Datar: Cost Accounting - Harvard ...

Management System: Robin
Cooper
Product #: 195064
Length: 12p
Teaching Note: 195065
J Boats: Robert L. Simons
Product #: 197015
Length: 18p
Teaching Note: 199042
Chapter 23: Performance
Measurement, Compensation,
and Multinational
Considerations
Vyaderm Pharmaceuticals:
Robert L. Simons, Indra A.
Reinbergs
Product #: 101019
Length: 15p
Teaching Note: 101043
Guidant Corp.: Shaping Culture
Through Systems: Robert L.
Simons, Antonio Davila
Product #: 198076
Length: 17p
Teaching Note: 199056
basic units of operation are profit centers called "amoebas," which
are sales or manufacturing units with full responsibility for their
planning, decision making, and administration. Amoebas are
expected to find ways to improve production and lower costs,
reflecting the belief of Kyocera's founder that profits are generated
during the manufacturing process.
Subjects Covered: Cost accounting; Organizational design; Profit
centers; Transfer pricing
Traces the 20-year evolution of a family-owned, entrepreneurial
sailboat company. Illustrates how two founders leveraged their design
and marketing skills to build one of the most recognized brands in the
recreational boating industry. Ends as the founder considers
management succession and the need to improve financial planning
and control systems to capitalize on brand value. Illustrates how
entrepreneurs successfully utilize the levers of control by focusing on
core values, risks to be avoided, critical performance variables, and
strategic uncertainties in a small, family-run business.
Learning Objective: To illustrate how entrepreneurs successfully
manage a small, family-run business by focusing on core values,
risks to be avoided, critical performance variables, and strategic
uncertainties
Abstract
In 1999, the new CEO of Vyaderm Pharmaceuticals introduces an
Economic Value Added (EVA) program to focus the company on
long-term shareholder value. The EVA program consists of three
elements: EVA centers (business units), EVA drivers (operational
practices that improve EVA results), and an EVA-based incentive
program for bonus-eligible managers. Over the next two years, the
implementation of the program runs into several stumbling blocks,
including resistance from regional managers, who push for "line of
sight" EVA drivers; the difficulty of managing a large number of EVA
centers; and unexpected bonus adjustments due to poor EVA
performance. The decision point focuses on the competitive situation
in a business unit where the sudden exit of a competitor produces an
unexpected one-time "windfall" in earnings. Vyaderm's top managers
struggle with the question of whether to adjust the EVA results to
prevent demoralizing managers in future years when EVA results are
likely to decline.
Learning Objective: To allow students to calculate EVA bonus
payouts using a pharmaceutical company example.
Guidant is a successful IPO start-up selling pacemakers and
defibrillators. The case describes how managers install systems to
balance innovation and control. Three parts of a shareholder value
strategy are described. Controls include incentive systems, beliefs
systems, and risk-management systems.
Subjects Covered: Control systems; Implementing strategy;
Incentives; Planning systems; Risk management