Evaluation of the current management control system Aloha Products maintains a centralized control system.

This includes the purchase of raw materials, marketing and sales. This management control structure does not give the plant managers control on any of the major activities of a production facility. According the case information, the plant manager does not control the green beans purchase, production schedule or the production mix, nor do they have control over sales or marketing. Regardless they are evaluated on the basis of the performance of their plants. Aloha Products has a cost center structure, but the control system is attempting to measure the roasting plants on a profit center system. Having a profit center measurement approach for infrastructure that operates in a cost center approach, will not provide reasonable measurements for the management control system. The plant manager's concern regarding the evaluation system is valid. Without proper control over the input and output you cannot expect the plant manager to perform well. Aloha, should not tie the gross margin of the plant to the manager's evaluation without giving them the ability to control all the variables that affect the gross margin. In my opinion, current measurement system is not appropriate. Given the current situation, the managers evaluation should not directly tied the gross margin. OR From the case we can see that Aloha products have a centralized control system. What this means is that the main office or headquarters handled the purchasing, marketing and sales activities of each of the three plants. The problem with this was that the individual plant managers had no control over any of the major activities in their respective production facility. For example the plant managers do not have control over the purchase of the unprocessed green beans this responsibility is left to the special purchasing unit within the company. In addition to this, they also have responsibility for the product mix. Although having a centralized purchasing center is beneficiary in that it saves costs, the individual production plants are evaluated on the basis of their performance. The company is structured on a cost basis; however the control system is attempting to measure each plant on a profit basis. This type of structure is an unfair way of measuring the performance of the individual production plants.