Matakuliah
Tahun
: A0134/Audit Operasional
: 2006
Kasus-Kasus
Pertemuan 11 s.d 14
1
Paper Company in Northern Europe
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Background and Purpose
Production Problems
Management Structures
Human Resources and Policies
2
Background and Purpose
• The client was a large industrial group in
Northern Europe with a small paper
company subsidiary.
3
• The subsidiary company had been losing
money for some years, with the result that
the holding company was considering
whether to liquidate its interest and close
the subsidiary.
4
Production Problems
• The subsidiary produces a range of paper
products. When the Management Audit
consulting team arrived at the location
they were met by the General Manager
(A). He conferred with the consultants
over the organisational structure that
existed (see Fig. 6. 1. p. 100)
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• He suggested that the exercise could be a
waste of time; he only needed a new
Production Director to be recruited. He
genuinely believed that then his problems
would be solved. (It should be noted that
in the positions reporting to the General
Manager, the box with the word
‘Production’ has no initials, which indicates
that this position was vacant.)
6
Management Structures
• See p. 101 – 103
• It was recommended that, in order to
utilise existing management potential best,
there be an interim organisation for the
remainder of the fiscal year.
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• The temporary Managing Director would
be supported by four Directors and seven
Managers to ensure day-to-day
operations.
8
• The suggested interim organisation is
shown in Fig. 6. 3. p. 102. this interim
organisation was accepted by the holding
company’s Board.
9
Human Resources and Policies
• See p. 103 - 104
10
Continental International Bank
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Background and Purpose
The Consultancy’s Mission
Conclusions
Recommendations
Result
11
Background and Purpose
• The client was a Continental International
Bank which at the time of Big Bang had
decided to expand out of its commercial
banking base into other financial service
areas.
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• The Bank’s strategy was to effect an
international expansion into all key
financial markets.
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• It anticipated that it would be able to
achieve this strategy by expanding initially
into the investment banking and brokerage
areas.
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• Having reviewed various options, it
decided to acquire a high profile, small
investment and brokerage business in
London.
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The Consultancy’s Mission
• The consultancy was asked to evaluate
the existing management team in the
financial institution to be acquired and
report on possible organisational
synergies.
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• This was possible because Heads of
Agreement had been signed which
enabled the exercise to take place prior to
the acquisition being completed.
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Conclusions
• The Management Audit came through with
the following findings:
– The potential financial institution to be
acquired had a first class name, reputation
and an excellent management team
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– However, there was a danger: only a few
senior business generators were responsible
for 60 per cent of the total business
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– There was an obvious cultural gab between:
• The merchant banking philosophy pertaining in the
financial institution to be acquired and the
commercial banking bureaucracy of the acquiring
commercial bank.
• The specific Continental and British cultures.
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• The compensation levels and schemes appropriate
to a deal driven institution bank in London and
those existing in the Continent.
• There was a lack of operational plans to make
London a platform for a worldwide business.
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Recommendations
• The Management Audit recommended that
the client should:
– Adapt the organisational structure on the
Continent to capitalise on the new business
that could be developed with the benefit of the
acquired financial institution in London
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– Effect an exchange of directors/partners
between the Continent and the United
Kingdom
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– Fund total immersion language courses for
the Partners being exchange, so that they
could speak in business as well as social
terms to each other
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– Create a management committee to tackle
the management issues, such as
compensation schemes and business
expansion
25
Result
• The advice of the consultancy was
disregarded in this particular instance.
The acquisition went ahead without any of
the consultancy’s recommendations being
implemented.
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• The Continental acquirer lost a
considerable amount of money, caused in
part by four of the highest fee earners
leaving the acquired financial institution.
This danger had been identified by the
consultancy.
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• The findings of a Management Audit are
for the Board of the Client to consider and
adopt, or not adopt, as it wishes.
28
• The consultant can, as it were, lead the
horse to water but in the end cannot force
it to drink. In this instance, time proved
the consultancy right.
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Presentasi
• Presentasi kasus Paper Company in Northern
Europe
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• Diskusi kasus Paper Company in Northern
Europe
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• Presentasi kasus Continental International
Bank
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• Diskusi kasus Continental International
Bank
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Summary
• Mahasiswa mengumpulkan summary
chapter 6
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