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Management control system of Thailand Subsidiary-Thaigia | |
Author | Hao, Hsu Keng |
Note | A project submitted in partial fulfillment of the requirements for the degree of Master of Business Administration (Executive) International Business, Technology Management and Entrepreneurship, School of Management |
Publisher | Asian Institute of Technology |
Abstract | Carbo Tzujan Industrial Co., Ltd. (CTIC) had established a plant (THAIGIA) with production lines of vitrified bond and electroplated diamond grinding wheels (Abrasives) as subsidiary in Thailand for Southeast Asian markets. THAIGIA is a manufacturer-oriented middle size company with simple organization structure and it had achieved 120 million Baht (23.3 million Baht net profit) in sales with 110 employees in 2008. In 2008, THAIGIA was audited and found there was gap of 8 million Baht stock shortage which reached 7.5% of 2008 yearly sales revenue; therefore, Board of directors start to realize that if there is no suitable managing control systems for THAIGIA with the forecasted development of business and expansion of production lines, which will result in more severe problems someday. The purpose of this study is to analyze details of its internal and external conditions and develop suitable management control systems to help top management to look into the organization and operations. The systems must be implementable which means aligning to corporate the vision and mission of the company. The methodologies to analyze the root causes include annual financial report, financial performance, management interview and questionnaires. The results found that the main causes of the 8 million Baht stock shortage came from inefficient control system and malfunction of management of sales/delivery department, manufacturing department, and warehousing department. The study proposed the Balance Score Card system (BSC) and KPIs based on organizational wised and departments. The BSC system and KPIs would require more participation and detail review with management and staff, though the company still shows strong growth in sales revenue and profit, it’s a critical time for THIAGIA to take this leap now. |
Year | 2009 |
Type | Project |
School | School of Management (SOM) |
Department | Other Field of Studies (No Department) |
Academic Program/FoS | Master of Business Administration (Executive) in International Business - Technology Management and Entrepreneurship |
Chairperson(s) | Venkatesh, Sundar; |
Examination Committee(s) | Kauranen, Ilkka;Nicholas J. Dimmitt; |