SUMBER 1

Description from the company’s overall goals,

1. What is the purpose company with the overall goals and 25 divisional marketing manager
implementing manufacturing?
In the case of 4-6 (grand jean Co.) that describes the company as a whole has the main goal is profit oriented,
namely to provide a fashion product (jean) with how to produce various kinds of jean model by increasing the
production capacity on the principles of efficiency, the speed and savings (time, effort and cost) in the
production process. This is the goal factory made for the benefit of – the size of the. So the purpose of the
company as a whole is different from the marketing division who have to work hard to master the market with
models marketing, because the company put the division as a marketing profit center (the center of income), in
other words the market becomes the spearhead of sale product companies (with estimates using marketing as a
determine the basic unit of sales). Because the company that operates a benchmark to measure the performance
of marketing with the view that the target achieved in the product sales.
Also vary with the manager to-25 production, which is the purpose of managers is how to keep the production
in order to meet market demand (in accordance with the estimated marketing) with the speed and saving both
time, cost and effort because it is made by the company whether the size the performance of managers – the
managers are good managers or not, if quick and sparing the company’s size means that the manager will get a
good predicate, so vice versa.
2. Evaluation for the implementation of management and control
Strength (strength)
1. Grand Jeans has 25 manufacturing executive with 20 contractors a reliable and proven for 30 years working
together to make pants
2. The marketing department has 5 under field marketing vice president who works for the basic jeans, jean
boy’s, men’s casual jeans, dress shirt and jean, clothes and women’s jeans
3. Develop kurva study as a basis to determine the standard of production, production time, and allocates costs
in the production
Weakness (Weakness)
1. Have occurred in the implementation of the storehouse of production undertaken by the executive manager
means the absence of coordination
2. The lack of good communication between the deputy director of field production with the implementation of
production so that many miss going production that does not comply with the order you want.
3. Agree with the concept of profit center for the company’s 25 manufacturing Grand Jean as a manager with
the implementation of the executive recommends:
o Knowing the extent to which total production time for each of the basic types of pants are made for cost
budgeting implementation.
o Knowing how long the production is needed on the type of pants to determine the usual standard of time that
accompanies each reconstruction after the infusion started or changed products.
o marketing staff estimate the quantity of part type pants that will be produced for several years to divide the
amount of production in the implementation at the end of the year, top-level manager Jean Grand set to evaluate
the performance bonus with a company’s overall profit in the year.
o The performance of managers is measured by the marketing department that achieved the target to find
changes in consumer demand, the frequency of changes in the product mixture is very important.
This approach can affect decisions implementing managers, performance and so as a manager implementing the
strategy need to make trade offs in competing, to choose what not to do.
A company can be better than a competitor can make a difference if you can be in terms of productivity,
quality, value and compare with the price. Because of operational effectiveness is the main goal of the company
means to do the same with better than their rivals. For example by reducing product defects and develop
products better and faster.
a. Using recording by the selling price of marketing for Grand Jean pants sale to retailers and distributors.
Marketing manager can check for every sale of products through marketing energy sales reports. This is quite
effective in establishing communication between employees as a performance indicator of markekting. Namun
not effective enough, due also to anticipate leakage guarantee validation reports, the need to survey and retail
distributors.
b. Using the standard cost of production per unit plus a percentage mark up to a reasonable gross earnings
Recording this model is quite effective to detect the return of each factory.
c. Using the average price paid contract in the Grand Jean make other companies for the kind of pants the same.

SUMBER 2

LATAR BELAKANG

Didirikan pada pertengahan abad ke-19, perusahaan tetap bertahan menghadapi tahun-
tahun penuh kesulitan dan pada tahun 1929 perusahan mengelami depresi berat akibat
dari daya tahan pasar produk yang dominant yaitu jenis blue jean denim. Grand jean
menguasai pasar dengan “wash and wear, bell bottom, jean flare serta celana panjang
casual modern. Pada tahun 1989 perusahaan ini menjadi manufaktur pakaian besar di
dunia. Perusahaan tersebut menyediakan bermacam-macam baju dan pakaian jean
untuk pria dan wanita serta celana panjang dengan jenis yang lengkap dan celana yang
berkualitas dan itu merupakan suatu reputasi yang layak untuk dihargai.

PERMASALAHAN

Pada tahun 1929 perusahaan mengalami depresi besar akibat daya tahan pasar pada
produk yang dominant yaitu jean blue denim. Disebabkan competitor memproduksi jenis
celana atau pakaian yang sejenis. Kenyataan ini benar-benar disadari telah kehilangan
pangsa pasar yang sangat signifikan dan mengharuskan Grand Jean meformulasikan
kembali strategi bisnis yang dijalankan.

SWOT ANALISYS

Kekuatan (Strength)
Pada tahun 1989 perusahaan ini menjadi manufaktur pakaian besar di dunia.
Perusahaan tersebut menyediakan bermacam-macam baju dan pakaian jaen untuk pria
dan wanita serta celana panjang dengan jenis yang lengkap dan celana yang
berkualitas.
Perusahaan mendidirikan sebuah perusahaan yang menggunakan system pengendalian
dan perencanaan.

Kelemahan (Weakness)
Kurang memperhatikan pangsa pasar garmen secara keseluruhan dan manfaat dari
barang yang dihasilkan. Karena industri yang dijalani tersebut termasuk dalam industri
kebutuhan yang tidak setiap waktu dicari oleh konsumen dan juga berpengaruh dalam
lingkungan.
Memang industri garmen itu manfatnya dalam jangka panjang dan biasa digunakan
kapan saja namaun apabila setiapa hari memproduksi dalam jumlah yang besar
kemudian hanya diletakan digudang untuk produksi selanjutnya kemudian ada hal
misalnya entah celana itu dimakan hewan kecil, apabila sudah lama tersimpan hingga
ada cacat tentu laba yang dihasilkan pun kecil dari biaya yang ditetapkan.

Kesempatan (Opportunities)
Keunggulan kompetitif dapat diperoleh di pasar melalui pengembangan lingkungan yang
berpusat pada fitur produk
Grand Jean mempunyai reputasi baik di mata dunia
Pada tahun 1989 perusahaan ini menjadi manufaktur pakaian besar di dunia.
Perusahaan meningkatkan kapasitas produksinya dengan kontrak manufaktur bebas.
Sekarang ini ada 20 kontraktor yang membuat jenis celana panjang Grand jean
(digolongkan dalam jean blue denim).

Ancaman (Threat)
Pesaing memproduksi jenis celana atau pakaian yang sejenis.
Tingkat pesaingan antar perusahan meningkat.
Hambatan masuk ke pasar dapat berupa persyaratan teknologi, investasi modal yang
besar, ketidaktersediaan bahan baku pokok, skala ekonomis yang sudah dicapai
perusahaan-perusahaan yang telah ada dan sulit diraih oleh para pendatang baru,
ataupun keahlian dalam pemasaran.

STRATEGI PERUSAHAAN DAN STRATEGI PEMASARAN

Pertanyaan yang mendasar dari strategi perusahaan adalah ”bagaimana kita akan
bersaing dalam industri ini?” jadi strategi perusahaan terutama memperhatikan
pendistribusian sumberdaya yang ada pada daerah-daerah fungsional dan pasar produk
dalam upaya untuk memperoleh sustainable advantage terhadap kompetitornya.
Mengemukaan tiga strategi generik yaitu diferensiasi, focus dan kepemimpinan harga.
Strategi pemasaran yang termasuk dalam fungsional umumnya lebih terinci dan
mempunyai jangka waktu yang lebih pendek dibandingkan strategi perusahaan. Tujuan
pengembangan strategi fungsional adalah untuk mengkomunikasikan tujuan jangka
pendek, menentukan tindakan-tindakan yang dibutuhkan untuk mencapai tujuan jangka
 pendek dan untuk menciptakan lingkungan yang mendukung pencapain tujuan tersebut.
Strategi fungsional perlu dikoordinasikan satu sama lain untuk menghindari konflik
kepentingan dalam organisasi.

PENGENDALIAN MANAJEMEN

25 manufaktur yang saat ini ada seperti menjaga pusat biaya, operasi pada setiap
pelaksanaan telah teruji yang terkait dengan industri dan pengaturan biaya dan secra
menyeluruh sehingga sesuai dengan standar biaya dan waktu yang ditetapkan
perusahaan. Perusahaan telah mengembangkan kurva belajar yang memberitahu kita
berapa lama produksi yang dibutuhkan pada jenis celana pnajang. Perusahaan dapat
menentukan jumlah standart jam kerja yang dapat diperlukan dalam satu bulan.

KESIMPULAN

Pada tahun 1989 perusahaan ini menjadi manufaktur pakain besar dibunia. Perusahaan
tersebut menyediakan bermacam-macam baju dan pakaian jean untuk pria dan wanita
serta celana panjang dengan jenis yang lengkap dan celana yang berkualitas dan itu
merupakan suatu reputasi yang layak untuk dihargai. Sebuah perencanaan dan
pengaturan yang baik akan bertahan dalam industri garment dan tentunya masing-
masing manufaktur tersebut memiliki tanggung jawab dengan masing-masing
keputusan yang diambil dan bagaimana keputusan itu mempengaruhi keputusan manjer
pelaksana agar mempertahankannya adalah dengan melihat lagi pangsa pasar dan
musim atau trend yang terjadi saat itu karena dunia mode sangat berpengaruh untuk
sebagian konsumen.

SUMBER 3

1. How would you describe the goal(s) of the company as a whole? Is this, or are
these, the same as the goal(s) of the company’s marketing organization and
the company¶s 25 managers of manufacturing plants? Explain.
The main objective of the company is to increase profitability and achieve high growth,
by selling as many pants as they can. The company is striving hard to achieve cost
effectiveness and achieve high level of quality. But the goals of the company’s
marketing organization and company’s 25 managers of manufacturing plant are
different.
The marketing division is treated as a ³Revenue Centre´ so the goal of the company¶s
marketing organization is to maximize revenue and sell what is produced. They are
evaluated on the basis of meeting the set sales unit and sales dollar targets. Also, they
are responsible for making demand forecasts which are used to decide the production
levels of each plant.
Whereas, the manufacturing plant have the goal to just meet the budget figure and fulfill
the quota allocated to each plant. Since they are considered as an expense center and
there is no immediate monetary reward to compensate for increase in responsibilities or
requirements, they are not concerned to achieve higher efficiency and thus, does not
want to exceed the targets.
2. Evaluate the current management planning and control system for the
manufacturing plants and the marketing departments. What are the strengths
and weaknesses?
Strengths
1. The company has 25 manufacturing executives with 20 contractors, a reliable and
proven brand for 30 years working together to make pants.
2. The marketing department has 5 marketing vice presidents who work for various
products manufactured by the company.
3. The company has used various measures like time and motion studies to
determine
the standard of production, production time, and allocates costs in the production.

Weaknesses
1. Lack of communication between different departments.
2. A flawed evaluation system.
3. Lack of proper MIS.
4. There is lack of staff for some departments as they continue to maintain11:1
 supervision ratio to achieve leadership excellence.
5. They are highly dependent on the outside independent contractors who provide for
approximately one-third of the total pants sold by them.

3. One plant manager recommended that plants be operated as profit centers

because it would overcome some of the problems discovered by Mia Packard
and the case writer. This plant manager commented, ³[My] competitor is the
nearby independent manufacturer that makes the same pants for Grand Jean as
my plant makes. And this outsider might also make pants for Grand Jean¶s
competitors. Because of the competitive market, only the best managed plants
survive in this business. Therefore, like the outside company¶s manager I sho
uld have bottom line responsibility and be rewarded accordingly.´ Do you agree
or disagree with the profit center concept for Grand Jean¶s 25 manufacturing
plants? How would this approach affect the plant manager¶s decisions,
performance, etc.?

The manufacturing plants have the goal to just meet the budget figure and fulfill the
quota allocated to each plant. There is no incentive to the manufacturing plants to
exceed production. Rather, it makes the things difficult for them as they have to meet
increased quota and have thus resorted to ³Hoarding´ of stock even if there is enough
demand.Since they are considered as an expense center and there is no immediate
monetary reward to compensate for increase in responsibilities or requirements, they
are not motivated to achieve higher efficiency.
It would be a good idea to convert the manufacturing plants to a profit center as that
would increase the profitability of the company.
The goal of the production team that way will be aligned with that of the entire
organization.
Since, the marketing department changes the forecast frequently, they can transfer this
extra cost to the
sales department if there is a variation at a short notice.
Also due to intense competition from independent contractors, only the best plants will
survive. Hence the plants need to be competitive. Also increase in production will help
the company to be self-sufficient and will reduce their dependence on external
contractors.

4. If Grand Jean’s manufacturing plants were treated as profit centers, three

alternatives were suggested for recording revenues for each plant
i) Use the selling price recorded by Grand Jean¶s sales personnel for pants
sold to retailers and distributors.
ii) Use full standard manufacturing cost per unit plus a ³fair´ fixed percentage
markup for gross profit.
iii) Use the average contract price Grand Jean paid outside companies for
making similar pant types.
Evaluate these three alternatives. Which one would you recommend? Why is
your selection the best one?
(1). Using selling price recorded by Grand Jeans sales personnel for pants sold to retailer
and distributer will not leave the sales department with any margin. The Sales
department would not earn any profits. Hence it is not a feasible option. Every
department needs to generate revenue for its sustenance.
(2). Using full standard manufacturing cost per unit plus a fair fixed percentage markup
for gross profit method has the advantage that there is incentive for the manufacturing
department to do well and to increase efficiency. There is a fixed percentage of the cost
that the manufacturing unit will charge over and above the cost and that will be its gross
profit. So, for every unit they produce and sell they get profit for it. This profit will make
them work harder and attain more efficiency. Also as a profit center even if they produce
more than what is their own companies requirement they may sell it to the market as
contracted manufacturers and earn further profit as a ³Fair´ percentage of cost.
But in this case there is nothing motivating for the employees to focus on keeping on
cost of production as low as possible. Hence, this alternative has several advantages of
motivation, but cost factor needs to be taken care of.
(3). If we consider the option of the average contract price that Grand Jeans is paying to
outside companies to get its product made that would give them the price range with
very little margin to work with as the bargaining power of Grand Jeans is pretty high.
Hence, this may lead to reduction in the quality so as to maintain a fair margin for
themselves. This may in turn lead to increased number of rejections at the
customer end and may lead to reduction in brand value and loss of market share to the
company.
Considering the three alternatives given to us the best one would be the cost plus fixed
margin.

SUMBER 4

How would you describe the goal(s) of the company as a whole? Is this, or are
these,
the same as the goal(s) of the company¶s marketing organization and the
company¶s
25 managers of manufacturing plants? Explain.
The main objective of the company is to increase profitability and achieve highgr o wth.
The company is striving hard to achieve cost effectiveness and achieve high level of
quality.
Now, the goals of the company¶s marketing organization and company¶s25 managers
of
manufacturing plant are different.
The marketing division is treated as a ³Revenue Centre´ so the goal of the company¶s
marketing organization is to maximize revenue and sell what is produced. They are
evaluated on the basis of meeting the set sale unit and sales dollar targets. Also, they
are responsible for making demand forecasts which are used to decide the production
levels of each plant.
Whereas, the manufacturing planthave the goal to just meet the budget figure and fulfill
the quota allocated to each plant. Since they are considered as an expense center and
there is no immediate monetary reward to compensate for increase in responsibilities or
requirements, they are not concerned to achievehigher efficiency and thus, want to
exceed the targets.

Evaluate the current management planning and control system for the
manufacturing plants and the marketing departments. What are the strengths
and weaknesses?

By 1989, the company was one of the world¶s largest cloth manufacturer.
Following are the Strengths:
a. T he companyhas been profitable for a long time.
b. T he companyhas25 manufacturing units of its own and20 independent
contractors producing efficiently and reliably for them.
c. T heyhave developed a learning curve to develop the productions standardhour.
d. 1-to-5 scale reward system can motivate employees workharder.
e. Use budgeting to set the quota, which can evaluate the performance easily.
Following are the Weaknesses:
a. T here is no incentive to the manufacturing plants to exceed production. Rather, it
makes the things difficult for them as theyhave to meet increased quota andhave
thus resorted to ³Hoarding´ of stock even if there is enough demand.
b. Standardhour¶s calculations are done on same scale for new and old machines,
which hence produces inaccurate results.
c. T hey arehighly dependent on the outside independent contractors who provide
for approximately one-third of the total pants sold by them.
d. T he reward system is not fair. The people who work at theheadquarters are
awarded higher rating than the plant managers.
e. T here is lack of staff for some departments as they continue to maintain 11:1
supervision ratio to achieve leadership excellence. Thus, the immediate and
significant information requirements cannot be met on time. Also, the production
cannot be increased because of lack of personnel.

O ne plant manager recommended that plants be operated as profit centers

because
it would overcome some of the problems discovered by Mia Packard and the
case writer. This plant manager commented, ³[My] competitor is the nearby
independent manufacturer that makes the same pants for Grand Jean as my
plant makes. And this outsider might also make pants for Grand Jean¶s
competitors. Because of the competitive market, only the best managed
plants survive in this business. Therefore, like the outside company¶s
manager I should have bottom line responsibility and be rewarded
accordingly.´ Do you agree or disagree with the profit center concept for
Grand Jean¶s 25 manufacturing plants? How would this approach affect the
plant manager¶s decisions, performance, etc.?

The manufacturing plants have the goal to just meet the budget figure and fulfill the
quota allocated to each plant. There is no incentive to the manufacturing plants to
exceed production. Rather, it makes the things difficult for them as theyhave to meet
increased quota andhave thus resorted to ³Hoarding´ of stock even if there is enough
demand.Since they are considered as an expense center and there is no immediate
monetary reward to compensate for increase in responsibilities or requirements, they
are not motivated to achievehigher efficiency.
But the manufacturing plants are considered as a Profit Centre, the plant manager will
be able to earn incentives through h igher efficiency. He will be motivated to work
efficiently and produce at peak levels.Also they¶ll not restrict themselves to the plant
quota and would nothoard the excess production; rather they¶ll make full use of this
extra production and gain maximum monetary rewards. A change in the reward system
would encourage the plant managers to push to maximum production and also to
minimize the cost, time and effort to produce efficiently.
Also due to intense competition from independent contractors, only the best plants will
survive. Hence the plants need to be competitive. Also increase in production willhelp
the company to be self-sufficient and will reduce their dependence on external
contractors.

If Grand Jean¶s manufacturing plants were treated as profit centers, three

alternatives were suggested for recording revenues for each plant
i) Use the selling price recorded by Grand Jean¶s sales personnel for pants
sold to retailers and distributors.
ii) Use full standard manufacturing cost per unit plus a ³fair´ fixed percentage
markup for gross profit.
iii) Use the average contract price Grand Jean paid outside companies for
making similar pant types.
Evaluate these three alternatives. Which one would you recommend? Why is
your
selection the best one?

1. Using selling price recorded by Grand Jeans sales personnel for pants sold to
retailer and distributer will not leave the sales department with any margin. The
Sales department would not earn any profits. Hence it is not a feasible option.
Every department needs to generate revenue for its sustenance. Also, the sales
department is already getting their products manufactured from20 other outside
suppliers for almost5 years now. If the manufacturing plants would charge them at
the price at which they are selling to retailers and distributors, then the sales
department would switch to the external suppliers for supply at a lower cost and
will not continue with this system. Also, if the manufacturing department thinks of
selling their products to the outside market even then they willhave to reduce their
price to the market price. So, considering both the points that are mentioned
above using selling price recorded by Grand Jean¶s sales personnel for pants sold
to retailers and distributors, it will not do any good either to the manufacturing or
to company as a whole.
2. Using full standard manufacturing cost per unit plus a fair fixed percentage
markup for gross profit means manufacturing unit calculates the per unit cost of
manufacturing and add a predefined ³ Fair´ Profit percentage to it to arrive at the
transfer price. This method has the advantage that there is incentive for the
manufacturing department to do well and to increase efficiency. There is a fixed
percentage of the cost that the manufacturing unit will charge over and above the
cost and that will be its gross profit. So, for every unit they produce and sell they
get profit for it. This profit will make them workharder and attain more efficiency.
Also as a profit center even if they produce more than what is their own
companies requirement they may sell it to the market as contracted
manufacturers and earn further profit as a ³Fair´ percentage of cost. But in this
case there is nothing motivating for the employees to focus on keeping on cost of
production as low as possible. The employees should try their level best to keep
the cost as low as possible and competitive. Hence, this alternativehas several
advantages of motivation, but cost factor needs to be taken care of.
 3. If we consider the option of the average contract price that Grand Jeans is paying
to outside companies to get its product made that would give them the price
range with very little margin to work with as the bargaining power of Grand Jeans
is prettyhigh. Hence, this may lead to reduction in the quality so as to maintain a
fair margin for themselves. This may in turn lead to increased number of rejections
at the customer end and may lead to reduction in brand value and loss of market
share to the company. Considering the three alternatives given to us the best one
would be the cost plus fixed margin (Alternative2).

All other options don¶t fit well in the situation of Grand Jeans. Moreover, the manager of
manufacturing and sales may sit down and negotiate and reach at a consensus. This
price could be between the cost plus margin price and selling price of the sales
department.
At this price the sales department willhave sufficient margin as well as manufacturing
department willhave good incentives to do well.