Behaviour Management Control Seminar questions about the case Axeon N.V. Group A7 Alexandre T. Abreu Rafael Almeida
What do you feel about the initial analysis? Was there, in your opinion, anything wrong with it? Good overall 20% IRR Consistent numbers Problems Single faced approach Too optimistic No general view
Is construction of the new factory in the UK in the best interest of Axeon? UK choice Filial motivation Future growth Higher risks Netherlands choice Lower costs Less risk Main company interest
Why did Mr van Leuven behave as he did? Not prepared for the meeting False expectations Lose face Protection Impacts Trust Authority
Discuss what transfer price should be established if AR-42 is supplied from the Netherlands to the UK. Market price Dual-rate Marginal plus lump- sum Marginal cost Negotiated transfer Full cost Plus a mark-up
What is Axeon's corporate strategy? Decentralization Better market knowledge Empowerment Incentives new ventures and market opportunities Rewards
What do you believe to be the critical success factors in Axeon? Empowerment Motivation Market knowledge Strategy
What do you believe are the key recurring activities in Axeon? Internationalization Allow subsidiaries to decide in accordance to their market Individuality Subsidiaries had a controlled freewill Bonus plan
Discuss Axeon in terms of its centralization / decentralization. Centralization Control Homeland profit Cultural emphasis Decentralization Motivation Market knowledge Empowerment
What should Mr van Leuven do? Mixed proposal Both sides happy In line with strategy Incentive to other subsidiaries Before the proposal Be more prepared Caution