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... Abrams provided parts to OEM market as well as its internal customer, the AM division. ... The top management focused highly on decentralization; however it is contradictory for Abrams to be decentralized and at the same time be involved in internal buying and selling. ... Additionally, Abrams don’t seem to have a structured arbitration process to help understand and resolve concerning issues
It is impossible for a company to attain organizational objective if their departments or divisions are not goal congruent. ... 2 The core competencies on which Abrams heavily relied were their ability to design innovative dependable parts that met customer’s quality requirements, their constant focus on motivating engineers to determinedly talk with consumers about technical issues and their eagerness to strive and meet delivery schedule even when they had a poor inventory culture. It was not clearly mention in the case how these competencies were communicated to the employees, however a good management system should define and communicate these competencies to all employees in the organization. Some of the weak points of Abrams’ internal control were their inability to resolve constant disputes over transfer prices between divisions, their failure to recognize inconsistencies associated with ROI in terms of evaluating performances, and their inability to recognize major cost associated with carrying excessive inventories and not managing it appropriately during critical times.
Approximate Word count = 865
Approximate Pages = 3.5
(250 words per page double spaced)
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