Case Study: T&J’sUnderstanding Strategies &The Management Control Systems

T&J’s
A Case Study


BACKGROUND
T&J’s, a coffee manufacturing and distribution company founded in 1910, operates through its three roasting plants in the Midwest. The company’s headquarters in Columbus, Ohio makes all operating decisions which include preparing monthly financial statements, managing sales policies, and providing production schedules for the current month as well as the succeeding month to the plants. Each plant is considered a profit center as it has profit and loss responsibility.

T&J’s produces and sells its own brand of coffee throughout the Midwestern and Mid-Atlantic states. The overall coffee market is in decline while specialty premium and gourmet coffee sales are increasing.


T&J’S STRATEGY
T&J’s general strategy is to supply quality products to the high-end coffee market at the lowest possible cost. Their strategy hinges on the minimization of spot market purchases, maximization of surplus beans selling in the spot market, real time d...