analysis of vershire
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An Analysis of the Vershire Company Prepared by Joi S. Bascomb Objective The objective of this report is to present the results of an analysis of the Vershire Company. In this analysis current strategies of the company were examined to observe if they are in alignment with their goals and objectives. Assumptions were made to include the aluminum industry will remain relatively stable with no new innovations and that Vershire will continue using a bottom up approach with regards to budget formulation. Executive Summary After analyzing current strategies of the Vershire Company, I have found that their goals and objects are in alignment. As there is little room for error within this highly competitive industry the company's budgetary control system seems to keep costs down. This system takes a bottom up approach in that budgets are not formulated and then assigned to various divisions by corporate, but rather preliminary reports are to come from the respective divisions and then sent to corporate. To keep managers motivated and in compliance with the company's objectives performance based incentives are given to managers. In the event that the aluminum industry goes through a monumental change such as a shift in what is predominately used in packaging soft drinks and beers, current strategies will need to be completely overhauled in order for the company to survive. Description of the Current System The Vershire Company operates in an industry where raw materials account for 64% of production cost and aluminum can producers produce similar quality products and have relatively the same technology...