Question 1: In today's world of business, there is a lot of success based on the approach of management. Sometimes a manager needs to have tight control and rigid structure to ensure success. Other times, a manager may allow for greater control outside of him or herself and allow people below to have greater decision making power. If you were to start a business, would you want it to be centralized or decentralized? List the advantages and disadvantages of both and talk about why you would choose one versus the other.
Question 2: ZZ Tire Company started as retail installer of tires on cars 10 years ago. They now have 400 retail stores, installing about 10,000 tires per store per year and selling a total of 4 million tires. 5 years ago, they decided to start manufacturing their own tires to sell in their retail locations.
They now have 4 manufacturing plants, making 2 million tires a year. They made a profit of $170 million dollars. On average, they make $50 a tire on the tires they manufacture and $35 on the tires from other manufacturers. Their current growth rate is 12% a year, and they are only located in the 10 southeastern states. Their current customer satisfaction rating is 85%. They are also starting to do research on making a tire that increases gas mileage in cars. Currently, they are using the same type of machines in the factory since the beginning and still use the same type of machines in their installation locations.
Do a basic balanced scorecard evaluation where you go through the four areas (learning and growth, internal business process, customer, and financial perspectives) and provide management some ideas for improvement. You are allowed to estimate and make assumptions about the company.
Note: Advanced managerial accounting