Management Control System Essay

4918 words - 20 pages

Case 1-2 Wal-Mart Stores, Inc.
1. What is Wal-Mart’s strategy? What is the basis on which Wal-Mart builds itscompetitive advantage?
Answer :
* Wal-Mart’s strategy is selling branded products at low cost.
* The basis is Wal-Mart deliberately ensured it didn’t become too dependant on any one supplier, no single vendor constitued more than 4 percent of itsoverall purchase volume.
* Wal-Mart used “saturation” strategy for store expansion. The standard was tobe able to drive from the distribution centre to a store within a day.
* Wal-Mart built large discount stores in small rural towns.

2. How do Wal-Mart’s control systems help execute the firm’s strategy?
  Answer :
* Each ...view middle of the document...

The main focus for Xerox management is the business management level that linkages markets and technology. There are three elements which make the system works:
* Way of the measurements established. The measurements are the combination of financial and operational targets. Xerox Corporation apply Leadership through Quality (LTQ) and competitive benchmarking as main tools to measure operational efficiency. LTQ used in order to make sure that the products meets the world class quality requirements while competitive benchmarking helps the operational business units compare Xeroxs product, services, and business practice with competitors. Financial Executive Council (FEC) established to control the financial performence of business units. The objective of FEC is adding value to the management process, moreover FEC analyize the financial information to support the business decision.
* The culture in Xerox Corporation. The working culture in Xerox are employee expected to be proactive and use analytical approach in solving problems. The employee’s involvement in achieving company’s target is the biggest concern too. The other culture is open communication.
* Unit controller of Xerox. Another key element of success was the fact that unit controllers knew both the financial and operational aspects of the business. A combination of all the elements ensured the durability and high effectiveness of the management control system implemented in Xerox.

2. What recent trends at Xerox do you see influencing the management control process?
Leadership through Quality (LTQ) is the recently trend that influencing the management control process. This strategy focuses on two aspects which are: 
* Employee involvement. This aspect focuses on relation and integration of employees within company to achieve the company’s target. For example, everyone within company should help each other in analyze and solve problems.
* Competitive benchmarking and quality improvement. Comparing Xerox’s products, services, and business practice with competitors. This aspect also concern on company’s learning process for its own improvement in products, services, and other practices within company.

3. In your opinion, how important are organizational culture and individual personalities in the Xerox control process?
Organizational culture and individual personalities within company are crucial elements to determine the success and sustainability of the company itself. It is very difficult to get employee acceptance to change. Thus, by having good culture within company, the needs of changing employees behavior minimize since employee’s objectives already meet with the company’s objectives. The result is goal congruence has been achieved.

Case 1-4 Motorola Inc.

1. What are the key success factors for Motorola's ASIC Division?
The opening of a new production facility in Chandler was an opportunity for them to make changes within the division.
* New plant...

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