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Management Control System Case Study

In: Business and Management

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| 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 |

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…...

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