Airtex Aviation Essay

602 Words3 Pages
AIRTEX AVIATION I. Did Airtex need a new control system at the time of takeover? Regarding Airtex’s present condition, Frank and Ted should set up a new control system for the following reasons: Airtex obviously needs a new accounting system as Sarah, although has worked for Airtex more than 20 years, is not educated to be an accountant and all accounting activities are implemented and controlled by her only. She would hamper the growth of Airtex with her knowledge and working style. Ted and Frank want to fire Sarah immediately. This is not a good idea as Sarah, with her personal limitation, has kept many undocumented Airtex’s financial and operational information. It should be wiser that Ted and Frank continue to employ Sarah and hire another accountant to share with her. This would help new owners take advantage of Sarah’s experiences and give the new accountant time to learn more about the company. Ted and Frank should document a proper working procedure for each department to make sure every involving activity is controlled. Moreover, the two new owners should try to persuade company veterans like Sarah to comply with the new procedure. Ted and Frank also need to stop the central repository information of Sarah and let all departments have the right to access their operational, financial information in terms of profits, account receivables, expenses, etc… Each department would have own picture of its performance, thus active and suitable steps/plans are conducted to improve the situation. Ted and Frank should avoid the former owner’s managerial style as he scarcely showed up at the company. The owners’ presence is ultimately critical as they would monitor activities until everything is under control and would encourage employees to increase productivity. It is of important that Ted and Frank clarify the $300,000 note to their employees, suppliers,

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