Premium Essay

Management Control System Case Study

In: Business and Management

Submitted By colby1989lz
Words 2961
Pages 12
| Group Assignment | Management Control System | in a Fashion Company | | | | | | | | | University of Techonlogy, Sydney | Xiuhong Xu 11775297 | Management Planning & Control 22705 | Hai Dang Nguyen 11880919 | Spring 2015, class: Monday 18:00 – 21:00 | Lizhe Liu 11828579 | Lecturer: Dr. James Wakefield | Liang Zhu 11576028 |

Introduction
Company A is a fast-fashion wholesale company located in Sydney, with eight brands sold in three wholesale shops in Sydney, two shops in Melbourne and two in Brisbane. Driven by over 50 employees, the company is growing fast, generating annual revenue of over 2 million dollars.

This report evaluates the management control system in Company A, with a comprehensive discussion of the practice of action control, result control and people control in core departments of company A, which includes design division, production division and sales division.

The existing and potential control problems are observed and analysed through the lenses of management control system theory. Suggestions and recommendations are provided in this paper as alternative solutions to improve current control system.

Organizational strategy and business model
Facing keen competition in the low-end fast-fashion market in Australia, Company A has obtained stable marketing share by providing trendy, up-to-the-minute stylish products in budget price in the nine years since its establishment. Its customers include boutique stores in cosmopolitan cities in Australia as well as online retail shops emerging in recent years through multimedia sales channel.

Company A operates in a fast fashion model. Designers get inspiration from existing high street brands, runway and celebrity styles and then put the design into production in a swift way. The shops get new shipments of clothes on a weekly basis with prices much…...

Similar Documents

Premium Essay

Management Control Systems

...IDEAL management control system? Management control is a process of assuming that resources are obtained and used effectively and efficiently in the accomplishment of the organization’s objectives. It is a fundamental necessity for the success of a business and hence from time to time the current performance of the various operations is compared to a predetermined standard or ideal performance and in case of variance remedial measures are adopted to confirm operations to set plan or policy. Some of the features of MANAGEMENT CONTROL SYSTEM are as follows: ➢ Total System: MANAGEMENT CONTROL SYSTEM is an overall process of the enterprise which aims to fit together the separate plans for various segments as to assure that each harmonizes with the others and that the aggregate effect of all of them on the whole enterprise is satisfactory. ➢ Monetary Standard: MANAGEMENT CONTROL SYSTEM is built around a financial structure and all the resources and outputs are expressed in terms of money. The results of each responsibility centre in respect to production and resources are expressed in terms of a common denominator of money. ➢ Definite pattern: It follows a definite pattern and time table. The whole operational activity is regular and rhythmic. It is a continuous process even if the plans are changed in the light of experience or technology. ➢ Coordinated System: It is a fully coordinated and integrated system. ➢ Emphasis: Management control......

Words: 35286 - Pages: 142

Premium Essay

Management Control System

...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 store constituted an investment center and was evaluated on its profitsrelative to its inventory systems. Data from over 5,300 stores on its such assales, expenses, and profit and loss were collected, analyzed, and transmittedelectronically on a real-time basis, rapidly revealing how a particular region,district, store, department within a store, or item within a department isperforming. Information enables the company to reduce the likelihood of stock-outs and the need for markdowns and slow moving stock, and tomaximize inventory turnover. * Wal-Mart instituted several other policies and programs for its associates:incentive bonuses, a discount stock purchase plan, promotion from within, payraises based on performance not seniority, and an open-door policy. * Wal-Mart had also......

Words: 4863 - Pages: 20

Free Essay

Management Control System Sylabus

...Management 3131-Fall 2009 Management Control Systems Instructor: E-Mail: Office: Phone: Class Time: Office Hours: Jim Hayes, CMA, MBA, BComm jhayes@nait.ca T-400 NAIT Campus(Business Center) 471-7419 6:00-8:50 PM Thursday 4:00-6:00 Thursday-UOL Edmonton Campus By Appointment Course Texts Cost Accounting: A Managerial Emphasis, Charles T. Horngren, George Foster, Sirkant M. Datar & Howard D. Teall, Fourth Canadian Edition, Prentice Hall. OR Cost Accounting: A Managerial Emphasis, Charles T. Horngren, George Foster, Sirkant M. Datar & Howard D. Teall, Fifth Canadian Edition, Prentice Hall. AND Management Control Systems, Robert N. Anthony & Vijay Govindarajan, Twelfth Edition, McGraw-Hill Irwin. Course Description Management 3131 is the second half of a two-semester course in intermediate management accounting. Management accounting is generally divided into two major components-cost accounting and management accounting and control. Management 3130 deals with cost accounting and this course, Management 3131 deals with management accounting and control. Management control is the process by which managers influence other members of the organization to implement the organization’s strategies. As such, it deals with people and behaviour and is often referred to as behavioural accounting. The course shall consist of two types of learning situations. We will use cases from the Anthony and Govindarajan text to develop critical thinking skills, analytical skills, as well as oral and......

Words: 2799 - Pages: 12

Premium Essay

Case Study 1: Building an Access Control System

...Running head: CASE STUDY 1 BUILDING AN ACCESS CONTROL SYSTEM 1 Building an Access Control System Case Study 1 Holly Dillon Professor Jennifer Merritt Systems Analysis and Development CIS/210 April 28th, 2014 BUILDING AN ACCESS CONTROL SYSTEM 2 Building an Access Control System Project Scope Description As a member of the Information Security Team at a small College, I have been made the Project Manager to install an Access Control System (ACS) in a dormitory. For this small College an ACS (Access Control System) needs to be implemented to unlock the dormitory doors, to record a person as they use their identification card to unlock the door. An electronic proximity reader is needed to integrated with the existing security camera system with the camera’s being able to face and rotate at the door. The tasks to put in place are simple and easy to follow along with guidelines for each step. Rosenblatt. (2012). The five major tasks with descriptive information that I am putting in place with a timeline for the project are as follows: Rosenblatt. (2012). Obtain Authorization To obtain documentation authorization you on the go ahead of the project, its planning, implementation, testing, and training of the system 1 Day Develop Plan Developing a......

Words: 886 - Pages: 4

Free Essay

Information Management Systems Case Study 4

...Case Study from Chapter 7: Apple, Google, and Microsoft Battle for your Internet Experience Business 5460, Management Information Systems March 30, 2014 Dr. Mical Ramim Provide a one page summary identifying major issues The battle between global giants, Apple, Google and Microsoft, is a fight that has been occurring for many years now. All three companies have been hugely successful in different aspects of their industry. However, as our society’s technology continues to develop each company has had to make drastic changes to adapt to new and upcoming trends. As discussed in the case study, the perfect example of this necessary adaptation is a trending statistic that predicts a majority of users will begin browsing the internet on mobile devices versus the traditional PC. This probable trend has led to a lively battle of innovation as each company struggles to be number one in the consumer internet experience. Throughout this battle to the top each company has experienced their fair share of issues. Microsoft is perhaps one of the most famous and respected companies in the world. The corporation was founded April 4, 1975 by Bill Gates, an inventor known for creating one of the first user-friendly operating systems for personal computers. Over the decades the company has been a huge success, but not without its failures which often seem to be as of late. What once may have been an internet experience that was easily dominated by Microsoft technology is now saturated......

Words: 1052 - Pages: 5

Premium Essay

Management Control System

...ijcrb.webs.com OCTOBER 2010 VOL 2, N O 6 INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS Management Control System Hamed Armesh Faculty of Management ,MMU,Malaysia Listed in ULRICH S Dr. Habibollah Salarzehi , Dr.Baqer Kord Faculty of Management, University of Sistan and Baluchestan Abstract A management control systems (MCS) is a system which gathers and uses information to evaluate the performance of different organizational resources like human, physical, financial and also the organization as a whole considering the organizational strategies. Finally, MCS influences the behaviour of organizational resources to implement organizational strategies. Keywords: Management , Control , Systems 1. Introduction To introduce this topic and understanding the importance of management control system we know that In the present globalised world, organisations need to use management control systems that go beyond the strategies that focus on acquisition of technology and logistics which are not sufficient to give the organisation sustained long-term competitive edge over its competitors. Management Control Systems (MCS) as defined by Anthony (cited by LangfieldSmith, 1997) is the process by which managers ensure that resources are obtained and used effectively and efficiently in the accomplishment of the organization s objectives . MCS is a system used in an organization which collects and uses information to evaluate the performance of the organizational......

Words: 5165 - Pages: 21

Premium Essay

Management Control System

...management control system targets. Therefore, conventional management control systems focus on getting better operational efficiency. But as operational efficiency is no longer adequate to create sustainable competitive advantages, management control systems must be expanded to managerial practices that cultivate employee cooperation and creativeness in the discovery and development of new business opportunities. This is especially the case in the high-tech industries that are at the faced with the challenges of globalisation and employee teams must combine efficient communication with creativity. ``Project managers and product designers in software and other industries thus need to find ways to divide up products and tasks so that even teams of many of clever people can work and communicate efficiently as well as creatively'' (Cusumano, 1997). Simons (1987 and 1990) argued that control systems is in four categories, namely i. ii. iii. iv. Diagnostic control systems Boundary control systems Interactive systems Belief systems. These four different management control systems are identified recently by companies as effective categories of controlling system, companies must apply them in a way that maximizes operational effectiveness without limiting employee creativity. This task can be accomplished by using diagnostic measures as a way to improve operational effectiveness and the other three types of control measures as a way to mitigate its negative effects on employee......

Words: 4444 - Pages: 18

Premium Essay

Case Study Management Control System

...Case 1-1 and case 3-2 | | NUCOR CORPORATION (A & B) As of 1999, Nucor Corporation( had been the most innovative and fastest-growing steel company of the last three decades. As an example of how a knowledge machine works, we see Nucor as a far more interesting company than, say, Andersen Consulting or McKinsey, because unlike professional service firms whose only output is knowledge, Nucor’s end product is steel, a tangible non-differentiable commodity. Yet, as we describe below, for much of the three decades from 1970 onward, Nucor had been a knowledge machine par excellence. Since the late 1960s the U. S. steel industry has faced numerous problems, such as substitution from other materials, foreign competition, slowing of steel demand, and strained labor relations and has reported one of the poorest profitability and growth records in the American economy. Yet, despite operating in a fundamentally troubled industry, during this time period, Nucor enjoyed an annual compounded sales growth rate of 17%, all generated organically. Furthermore, the company’s profit margins were consistently well above industry medians, and average annual return to shareholders exceeded 20% (see Box 1 for a business profile of Nucor Corporation). Nucor achieved this phenomenal and sustained success by excelling at a single task: creating and mobilizing......

Words: 6458 - Pages: 26

Premium Essay

Role of Management Control System

...Political Science David Smith Monash University Social capital The role of management control systems in NGOs Research executive summary series Volume 6 | Issue 6 Key findings: • Non-governmental organisations (NGOs) are being confronted with the competitive nature of acquiring funds and need to demonstrate that they have particular competencies to funders, while at the same time continuing to adhere to their traditional welfare or development values. • The evidence shows that developing formal management controls can help NGOs to develop networks with government departments, funding agencies, other service providers and clients. However, formal management controls also have the potential to damage the internal bonding between employees. • Developing belief systems to incorporate financial concerns, along with traditional welfare goals, would seem a useful starting point in the move towards managing in a more competitive NGO sector. Overview and objectives In recent years non-governmental organisations (NGOs) have become increasingly important in addressing humanitarian issues relating to welfare and developmental aid. NGOs face increasing pressure to demonstrate service delivery in cost efficient ways. This creates tension over delivering welfare services while operating within the constraints of cost management. The application of management control systems has the potential to help in the effective and efficient delivery of services,......

Words: 3664 - Pages: 15

Premium Essay

Case Study of Management Operational Control

...Management Accounting Research 19 (2008) 324–343 Operation of management control practices as a package—A case study on control system variety in a growth firm context Mikko Sandelin ∗ Helsinki School of Economics, Department of Accounting and Finance, P.O. Box 1210, FIN-00101 Helsinki, Finland Abstract This empirical case study examines the operation of management control practices as a package in a growth firm context by paying particular attention to the couplings among cultural, personnel, action and results controls. The analysis focuses on two different management control packages in the face of similar contingencies at different points of time. The paper argues that the functionality of a control package depends on internal consistency, specifically on the reciprocal linkages of design and use between a primary mode of control and other control elements. Moreover, it argues that control package variety is driven by the way in which the management responds to functional demands. Two different control packages are considered equifinal to the extent of limited operational complexity, whereas an accounting-centric control package is also sufficient in the face of increasing levels of operational complexity. © 2008 Elsevier Ltd. All rights reserved. Keywords: Management control package; Control system variety; Internal consistency; Functional demands; Equifinality; Growth firm 1. Introduction This empirical case study examines the operation of management......

Words: 13689 - Pages: 55

Premium Essay

Case Study 1: Building an Access Control System

...Project Scope This project scope is to install Access Control System (ACS) in the college dormitory. To identify the project’s goals, objectives, deliverables, tasks, costs, deadlines, expected leading staffing and none-staffing resources needed (Bidgoli, 2014). For a project this size, the company is limited to using current staff to complete the project. The size of the dormitory is five doors entering and exiting the building. The building has five moving cameras installed located at each doorway. The project is set for thirty days completion timetable. The current system analyst will be the project manager, and his responsibilities are as follows: • Project planning – identifying the project task estimating the completion time and cost of the project. • Project Scheduling – Creating a timetable for specific tasks. • Project monitoring – Guiding, supervising, and coordination the team's workload, and making decisions based on the team's workload and taking action to make corrections to keep the project on track. • Project reporting – This includes updates from his management, about current users and project team members on attitude and the overall effort of the team. (Rosenblatt J.H., 2014) A successful project will be completed on time, within budget and deliver a quality product that meets all requirements that were requested. A listing of the primary task and subtask are as follows: • Obtain equipment 1. Request bids from different vendors. 2. Evaluate...

Words: 326 - Pages: 2

Premium Essay

Case Study: Access Control System

...Case Study 1: Access Control System Project Scope: As a member of Information Security team, I have been assigned to install a card sweep access control system for the dormitory with the help of a team. The ACS will automatically unlock the dormitory doors via an electronic proximity reader and integrate with an existing security camera system. The cameras are designed to face and rotate to record a person as they use their identification card to unlock the door. Major Tasks: Five major tasks to accomplish the goal of this project include: * Planning * Setup * Limitations * Monitoring * Completion Objective: The goal of this project is to prevent unauthorized personnel from accessing dormitory. The existing camera system will enable to keep an eye on the student activities. Planning: It is essential to have proper planning before start the task. Planning is the important thing for any project to be successful. There will have planning about integration of the system, software, equipment, power supply, and camera integration requirements. This task also involves conducting a review of current setup of security camera system. Determining the cost is also necessary before starting the project. Setup: This is an important for any type of system. It is vital to configure the required parameters for the system for example, users who are authorized, hours the students have access or logs etc.  Hardware Setup: Electronic proximity reader need to be...

Words: 604 - Pages: 3

Premium Essay

Case Study on Tate and Lyle; Management Information System.

...CASE STUDY TATE AND LYLE MODULE TITLE MANAGEMENT INFORMATION SYSTEM BSC COMPUTING SEMESTER 5 August 2012- November 2012 ABIODUN EMMANUEL TAIWO L0592LYLY0411 MODULE ADVISOR DR UMA MOHAN Cardiff Metropolitan University Department of Business and Information Technology London School of Commerce, London SE1 1NX ABIODUN EMMANUEL TAIWO L0592LYLY0411 MIS CASE STUDY 1. EXECUTIVE SUMMARY Tate and Lyle is a manufacturing firm that has it history dated back to the year 1921. The company was established as a result of a major merger between two sugar refining companies; Henry Tate & sons and Abram Lyle and sons. The company, after the merger expanded its coast to the production of specialty food ingredients such as sweeteners, texturants, wellness ingredients among others and bulk ingredients such as corn syrup, acidulants and flours. Tate and Lyle is based in Silver-town, London from where it runs supplies to a huge market network which comprises of food and beverages, pharmaceutical, animal feeds and personal care industries around the globe. Vision and Mission remains the backbone of every successful business organization and the managers of Tate and Lyle left nothing untouched in this regard. It has simple, direct and concise goals and mission which are clearly outlined in their mission statements. This case study pays particular attention to a broad analysis of the company’s mission statements, its alignment to the company’s......

Words: 3380 - Pages: 14

Premium Essay

Case Study 1: Building an Access Control System

...Case Study 1: Building an Access Control System Building an Access Control System Marcelino P Figueroa Dr. Shah Strayer University, Woodbridge - VA ​This Project consist of a team of five specialists that will work together to successfully build an Access Control System for a College campus that has existing cameras. Pete will be leading the team of five on this project with that he will also be responsible of the projects progress, he will be in constant follow up with the senior management to deliver real time project completions and analyzing every task throughout the way. The first task is to Order all that is need to build the access control system. Pete assigned Chris, Kevin, Tonia, and Rich to review the industry leading ACS (Access Control Systems) methods in order to better fulfill the college campus’s security needs, they have two days to complete the task. Tonia has been assigned to select the components within four hours once complete she has to select the materials which needs to be complete within four hours. Chris is responsible on ordering the selected components and materials within two hours, while the ordering task is under-way, Jerry posted the maintenance signs all around the college campus to create awareness of the work that’s in the process. Once the components and materials are received in its entirety Chris, Kevin, Jerry, and Rich will team up to build and install the access control system. Once the installing task is complete,...

Words: 369 - Pages: 2

Premium Essay

Management Information Systems - Ups Case Study

...tracking system? There are two sides to UPS's package tracking system: the external, customer-oriented side, and the internal company and employee oriented side. The input starts with customer with the creation of a scannable bar-coded “smart” label which can be done from the UPS website or using a special software provided by UPS, both accessible via the internet. These labels will contain data about the sender, the destination, and package arrival times. This data is received by UPS's central computer for processing and the information is then forwarded to one of their distribution centers where logistical planning will occur. UPS drivers are given a handheld Delivery Information Acquisition Device (DIAD) which can immediately record and upload pickup and delivery information and pictures of recipient signature to the UPS network, called UPSnet, for storing and processing. The data being sent from the DIAD is gathered from the scannable label on packages, recipient signatures captured, time card info, satellite feed of traffic patterns and changing schedules. Finally, all this information's outputs will include the UPS intranet available company-wide to distribution centers, customer service centers, etc., and the internet via UPS's website or embedded UPS functions within corporate customer's own websites. What technologies are used by UPS? How are these technologies related to UPS's business strategy? The technologies at UPS include bar code scanning systems,......

Words: 902 - Pages: 4