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Words: | Submitted: Mon Jun 19 2006
... from customers in terms of product quality and late deliveries, the MD of the company employed an AP management consultant. The consultant issued a report about the company's status. I want to specify the problems, which may cause the survival problems for the company, in the following assignment step by step. I'll also try to give some proposals how to solve those problems as a long term solution. INVESTMENT: The biggest problem in terms of "investment" is that several departments of the company initiated the purchases on their own interest. In many organizations, managers of different functions are measured in terms of their departmental efficiency and not in terms of overall effectiveness (a business perspective). Furthermore, their career prospects are governed by their performance within the functional value system. As a consequence, this leads to managers making trade-offs, which are not very optimal for the business as a whole. At ...
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