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EU Design-Part Two: Managing Growth Through an Informal Control Structure  
Product Ref: 12/517C Company: EU Design

Product Type: Case Industry: Consumer Goods
Textiles, clothing, fashion

Related Product(s): Teaching Note
In 2009, Eu Design faced a so-called ¡§first growth crisis¡¨. In 2010, the company created a joint venture with one of its suppliers to overcome price pressures and comply with the policies of some of its major clients. In the second half of 2012, Eu Design will add a second joint venture, this time in India, to track the delocalisation from China of garment production. With no radical change in organisation and modus operandi, the company remains anchored to its CEO for the management of major clients, and the flat organisational structure of 2009 is still largely in place, even though it now incorporates two factories: one already operating in China and a second just set up in July 2012 in India.
Functional Area : Accounting & Control

Learning Objective: This case focuses on determining the factors that have impeded the adoption of a more formalised management system, and asks in particular:1.What is the main impediment to the adoption of a more effective internal control and incentive system at Eu Design? 2. Given that the company has remained profitable, is a more refined and sophisticated internal control system needed? Is it a critical factor for the survival of the company? 3.When will it be the right time for Eu Design to adopt a more formalised internal control and management system?
Length: 7 pages Country: Hong Kong SAR

Pub. Year: 2012 Level of Difficulty: 3
This product type is available in the following language(s):      English
Related Information: N/A
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