PCL is a leading European consumer lifestyle, electronics and healthcare business that has been operating in the Chinese market since 1995. It has found that the prices of returned goods in its TV division equal 5% of its income, while its consumer electronics company has grown rapidly in China. Even more worrying is that 37% of the products returned are of high quality and have been yielded without good reason. PCL has set up taskforces to analyze and remedy the specific situation , and it has uncovered a serious issue within the organisation: control measures designed to handle returns have simply not been implemented by its own staff and third party after-sales service centres. What can PCL do to ensure enforcement of firm policies later on?
PCL A Breakdown in the Enforcement of Management Control case study solution
PUBLICATION DATE: February 18, 2011 PRODUCT #: HKU922-HCB-ENG
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