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Case study - Falcon, Inc.: Performance Evaluation of Foreign Subsidiaries Mahendra R. Gujarathi and Vijay Govindarajan

1. What are the costs associated with a bad PES system? Relate your answer to Jack Welch's quote from the book. "Winning".

2. How is the controllability principle being broken in the case? Is Tanaka a good/bad manager? Is Bogage a good manager?

3. What are the consequences and risks of using the PES just as they are presented in the case?

4. What do you propose to improve the PES at Falcon?

5. Please comment on the following quote: "We can have good a good subsidiary and a bad manager. Or we can have a bad subsidiary and a good manager. Each of these two combinations can occur at the same time and space".

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