Chemalite B Case Study

Module Note | September 2016 (Revised January 2018)

Strategy Execution Module 4: Organizing for Performance

Robert Simons

This module reading explores the implications of different business models on organization design. After discussing the distinction between units focused on work processes and those devoted to markets, the analysis provides insight as to when to organize businesses by function, geography, products, customers, or expert knowledge. The analysis highlights the difference between operating core units designed for efficiency and market-facing units designed for responsiveness. Span of control and span of accountability are introduced as key concepts to direct organizational attention and ensure the effective execution of strategy. While this module is designed to be used alone, it is part of the Strategy Execution series. Taken together, the series forms a complete course that teaches the latest techniques for using performance measurement and control systems to implement strategy. Modules 1 - 4 set out the foundations for strategy implementation. Modules 5 - 10 teach quantitative tools for performance measurement and control. Modules 11 - 15 illustrate the use of these techniques by managers to achieve profit goals and strategies.

Keywords: Management Control Systems; Implementing strategy; strategy; Execution; organizational design; organizational structure; Customer focused organization; specialization; span of control; span of accountability; Span of attention; Strategy; Organizational Design; Organizational Structure;

INDIRECT METHOD DIRECT METHOD Submitted By: Snehashish Gurung 14A1HP035 Chemalite Inc. Chemalite Inc. Mayank Jhunjhunwala 14A3HP625 Cash Flow Statement Cash Flow Statement Y. Prashant 14A3HP636 For the year ended 31st December 1992 For the year ended 31 December 1992 Sandip Barman 14A3HP610 Aishwarya Singh 14A3HP629 Cash Flow from Operating Activities: Cash Flow from Operating Activities: Income Before Tax 183,925 Cash Receipts 1,816,220 Depreciation 61,625 Materials-473,150 Amortization 25,000 Labour-660,000 Interest 58,750 Rent-25,000 Sale of Equipment-24,250 Utilities-82,000 Prepaid Insurance-65,000 Advertising Expenses-70,000 Finished Goods Inventory-99,680 Research & Development Cost-63,250 Accounts Receivable-70,030 Insurance-97,500 Raw Material Purchase-20,450 Selling & Administration Expense-195,750 Cash Flow from operating activities 49,890 Closing Inventory-99,680 Taxes-39,150 Cash Flow from operating activities 49,890 Net cash flow from Operating Activities 10,740 Taxes-39,150

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