Vershire Company Essay

1409 Words6 Pages
Vershire Company is a diversified packing company. They are one of the largest manufacturers of aluminum beverage cans in the United States. They have a reporting structure where there is a divisional manager and two line managers that report to that manager. There were two vice presidents that headed all of the division’s activities in their functional areas. Outline the strengths and weaknesses of Vershire Company’s planning and control system. Strengths of Vershire Company include that they are a diversified company with several major divisions. They have an Aluminum Can division, which is one of the largest manufacturers of aluminum beverage cans. The sales growth in the Aluminum Can division is also slightly greater. They have become more efficient by using aluminum over steel. This reduced transportation costs also because aluminum is lighter than steel. By distributing to local customers, they save shipping costs that can be incurred if they had to ship to customers farther away. They also used the budget as a tool to direct each division’s efforts towards common corporate objectives. The Aluminum Can division had plants throughout the United States. A disadvantage may be that the plants only served customers in it’s own geographic area. Any of the customers had between two and four suppliers and divided the purchases among them. By only dealing with customers in there geography they may be limiting their sales. If the customer decides to use another supplier more than Vershire, this will affect sales for Vershire and make it difficult to recover that profit. Vershire is limiting their sales in this area. If they dealt with customers in other geographic areas, they would be able to market to other customers. Customers may also decide not to deal with Vershire if they get a better deal from a different supplier. Competition in

More about Vershire Company Essay

Open Document