Mcs Notes

In: Business and Management

Submitted By fastpker
Words 5664
Pages 23
The summary of Management Control Systems – Kenneth A. Merchant [Prentice Hall] Summarized by Mooyoung Son Linkoping University SMIO 2009 http://cyworld.com/zekison

The summary of Management Control Systems
– Kenneth A. Merchant [Prentice Hall]
Summarized by Mooyoung Son
Linkoping University SMIO 2009 http://cyworld.com/zekison Chap 1 : MANAGEMENT AND CONTROL
1)

Causes of Management
-Lack of Direction
-Motivational Problems
-Personal Limitation

2)

Avoidance
-Activity elimination : Eliminate what is not working properly
-Automation
-Centralization
-Risk Sharing

Chapter 2 SECTION II
3)

Result Control : Preventive type Control
Helps Mgr to address strategy, org, employees are performing
- Steps :
1. Define Performance dimension
2. Measure Performance
3. Setting Target
4. Provide Reward
-

Requirement for Effective Result control :
- Knowledge of desired result : Org should know what result are desired
- Ability to influence desired result : Employee have influence on result (Controllable)
-Ability to measure Controllable result effectively : Org can measure result effectively (Measurable)
 Result measure should be : Precise, Objective, Timely, Understandable

Chapter 3
4)

Action Control : To ensure employees act in org’s best interest
a. Form of Action control
- Behavioral constraints – Negative Form (You can’t do this You can’t do that)
- Pre action Review – Scrutiny(详查정밀조사) of action plan (What will they do?)
- Action Accountability – (의무義務) Hold employees for action required (You should do this and that)
 Requires : Define actions acceptable or unacceptable
Communicate definitions to employees
Observe what happens (reaction)
Reward or Punish
- Redundancy (과잉過剩) : Set more Human resource than what they need (Backup)
b. Requirement for effective action control :
- Knowledge of desired action
- Ability…...

Similar Documents

Mcs Notes

...targets. Inertia often works against the company employees are accustomed to a self limited cycle of setting targets, missing those targets and readjusting the targets to reflect what was actually achieved. Without a method for making improvement, improvements are unlikely to consistently happen no matter how good the stretch goal sound. Measurement overload How many critical measures can one manager track at one time without losing? Unfortunately there is no right answer to this question except it is more than 1 and less than 50. It too few then the manager is ignoring measures that are critical to creating success. If it too many then the manager may risk losing focus and trying to do too many things at once. 5 Girish Engineering (MCS-2004) Numerical Responsibility budgeting was introduced in a medium sized organization Girish Engineering. Monthly report (in part) for an expense centre in factory is: [All figures in Rs. Lacs] Direct Labour Indirect Labour Total Controllable Costs Department Fixed Costs Allocated Costs Actual 100.13 66.34 168.47 38.82 53.62 Variance 0.21 (Favourable) 8.10 (Unfavourable) 8.50 (Unfavourable) --------------- Questions: a. Why no variance is shown in two items? Is this correct approach in performance reporting? b. Should overhead expenses mentioned above be included in Controllable Costs? Why? Why not? Solution (a): Variances between actual and budgeted departmental fixed costs are obtained simply by subtraction, since these costs are......

Words: 43603 - Pages: 175

Mc Donalds

...Maurice and Richard moved the entire building to San Bernardino, California and operated it as a barbecue restaurant. Businessman Ray Kroc joined the company as a franchise agent in 1955. He purchased the chain from the McDonald brothers and oversaw its worldwide growth. In 1955, Ray Kroc opened the first franchised restaurant in Des Plaines, Illinois, the ninth Mc Donald's restaurant overall. (Franchising is the practice of using another firm's successful business model.) With the expansion of McDonald's into many international markets, the company has become a symbol of globalization and the spread of the American way of life. The original mascot of McDonald's was a man with a chef's hat on top of a hamburger shaped head whose name was "Speedee". Speedee was eventually replaced with Ronald McDonald a clown shaped man having puffed out costume legs. McDonald's predominantly sells hamburgers, various types of chicken sandwiches and products, French fries, soft drinks, breakfast items, and desserts. In most markets, McDonald's offers salads and vegetarian items. In Germany, McDonald's sells beer. Mc Donald's is in the list of the most valuable brands, number 4. Brand value: $95.2 billion What happened: McDonald's is accelerating growth in India. Its expanding in the U.S. by experimenting with baked goods and creating a cafe atmosphere to rival Starbucks. Facts about McDonald's: McDonald's' daily customer traffic (62Million) is greater than the......

Words: 380 - Pages: 2

Mc Summary

... rental  for  the  first  few  months  un-l  our  first  trip  to  India  in  June.  This  business  proposal   outlines  GPA’s  market  structure,  promo-onal  plan,  compe--ve  advantage,  and  modes  of  business   implementa-on  including  a  sample  trip  to  give  a  glimpse  into  the  GPA  experience.  Furthermore,  financial   informa-on  is  provided  to  support  our  place  in  the  market,  low-­‐cost  poten-al,  strength  of  cash-­‐flow,  and   our  ability  to  quickly  service  the  $25,000  loan. Global Perspective Adventures | MC Proposal ...

Words: 535 - Pages: 3

Mc Donalds

...ds MC DONALDS OPENED IN 1955 BY RAY KROC IN US FAST FOOD OUTLET OF AMERICAN STYLE,WITH THE MOTTO QSC &V GRADUALLY EXPANDED AND BY 1983 IT HAD OVER 6000 RESTAURENT IN US IN 1967 STARTED INTERNATIONAL CHAIN AFFLICATIONS,CLICKING OF FROM CANADA A WELL RECOGNISED IN EVERY CONTINENT IN THEIR OWN FASHION WITH MORE THAN 18 MILLION PEOPLE IN OVER 40 COUNTRIES EATNG THEIR OUTLETS •RAPID ESTABLISHMENT O BRAND NAME •CONCENTRATED ON LIMITED MENU O F HIGH QUALITY,MODERATELY PRICED AND A GOOD AMBIANCE MOTTO QSC&V •WELL ESTABLISHED CHAIN AFFLICATIONS •IMMENSE PLANNING AND BEST CONTROLLING TECHNIQUES FACTS oWITH THE INTRO OF MC MEAL MC DONALD’S QUICKLY BECAME THE LARGEST TOY DISTRIBUTOR IN THE WORLD oMC DONALDS IS THE WORLDS LARGEST TOY DISTRIBUTOR oIn the U.S. nine out of ten kids between the ages of 3 and 9 eat at McDonalds once a month. oIn 1979 the Happy Meal was first invented and only cost $1.00. The biggest hit toy that came from the Happy Meal was the Ty Beanie Baby. McDonald's has unique menu items in every country. In Portugal, you can order soup! Paris has what is thought to be the only McDonald's with white arches in place of their traditional golden ones. The McDonald's Shamrock Shake was created for a fundraiser with the Philadelphia Eagles. In 2005, McDonalds paid rappers to reference Big Macs in theiR SONGS 4 .SHOULD MC DONALDS EXPANDS ITS MENU?IF YES WHAT KIND OF PRODUCTS THEY SHOULD ADD? YES, MENU SHOULD BE MODIFIED OTHER THAN ITS FIXED MENU MC......

Words: 287 - Pages: 2

Nature of Mcs

...causes of management control problems and control problem avoidance using control alternatives. This seminar contributes to enhancing students’ discipline-knowledge and skills. readings[1] 1. Merchant and Van der Stede (2012). Chapter 1 The Control Function of Management. 2. Chenhall (2003) Management Control Systems Design within its Organisational Context: findings from contingency-based research and directions for the future, Accounting, Organizations and Society, 28, pages 129-134. questions for discussion[2] 1. Read Section 3 (page 129 only) in Chenhall (2003) relating to the ‘Meaning of MCS’ a. Explain how Chenhalls’ meaning of MCS is similar and/or different to that of Merchant and Van der Stede (2012)? 2. Refer to Section 4 (page 132 to 134) in Chenhall (2003), and in your own words, explain what the outcomes of MCS are. 3. Explain how management control is different to strategic control. 4. Lets’ finish up with Leo’s Four-Plex Theatre: a) Where is the theatre’s control system lacking? That is, what are the problems with the controls? Are they weak or incomplete and so forth? b) What control improvements would you recommend for Leo’s Four-Plex? ----------------------- [1] Students are exempt from reading the articles prior to Seminar 1. Other pre-seminar readings, however, should be read prior to the corresponding seminars. The readings are available at the unit’s web......

Words: 338 - Pages: 2

Mc Script

...Phase 1: Settle down! Our event will begin within 10 minutes. Please settle down and turn off your phone or switch to silence. Good morning, everyone! Welcome to Vietnamese – Colombian Culture Exchange Ceremony! I’m Quang and I will be the MC today. Our event will begin with an entertainment show contributed by Mr. Dang, from TDT University. Thank you for your beautiful performance, Mr. Dang! Phase 2: Speech! I would like to invite Mr. A from VPV to present about our ceremony. Thank you for your meaningful presentation! I would like to invite Mr. B, the representative from Colombia, to have some words. Thank you for your wonderful speech, Mr. B! Our event will continue with a speech from Mr. C, Principle of Vstar School. Thank you for your wonderful speech, Mr. C! Phase 3: Entertainment! And now, we will continue with the most important part of our event: Musical performance. To continue, our friends from Colombia will contribute to our event a performance name: “ . . .” What an amazing performance! The next following performance will come from our friends from Vstar School, “ . . .” The next following performance will come from our friends from Ton Duc Thang University, “ . . .” Our event will be continued with a performance from Colombian friends, “. . .” The next following performance will come from our friends from Vstar School, “ . . .” Now I want to introduce a performance name as: “ . . .” from Ton Duc Thang University. The next following......

Words: 400 - Pages: 2

Mc Ds

...Zaheer Notes Share Analysis * Right then, on the screen is a graph showing the share prices at different points during the last 5 years. * As you can see, share prices peaked during 2011 and 2012. * Now we can translate this graph into some ratios to look what it actually shows * So, the earnings per share figure has continued to grow since 2011 * However we need to look at the price to earnings ratio to fully understand what’s going on. * In 2011 there was a big increase in the price to earnings ratio * Share prices were high, and the demand had increased * But why? Investors were expecting a big growth in earnings in the future Geographical Segments/SBU’s * McDonalds segmentation focuses closely on its franchises and its McCafe brand. * Now, well all know about that cliché where Americans are known for their love for massive burgers right? So let’s look at what the actual numbers say about this... * The US has the largest fast food market in the world, estimated of produced $191billion * So how are McDonalds performing in the states compared to the rest of the world * First of all, as mentioned earlier more than 80% of McDonalds restaurants are franchises * So, because of the limited time we have today, I will be focuses on the revenues of franchised restaurants rather than the company owned ones. * If we take a look at the bar chart on the screen, almost half of the sales are coming from America, followed by......

Words: 381 - Pages: 2

Mc Donals

...tailoring their strategy focusing on the potential changes in customer levels, rivals and the environment (Bradley, 2005). McDonald’s currently trades in over 119 countries worldwide and has the potential to develop furthermore. (McDonald’s Canada, 2007) it is through the application and implementation of McDonald’s marketing strategy and marketing mix which has resulted in McDonalds holding such a competitive position in today’s fast food market. McDonalds has a menu which in some form or another sets to make all segments of demography its target audience. However in recent decades, McDonald’s have had some controversial advertising campaigns which have had a negative effect on the company (BBC, 2005). This case study seeks to establish the role Mc Donald’s marketing tactics in relation to the company’s success. It will also demonstrate the defects of their marketing plan. This case study will be evaluated alongside a SWOT analysis and will be based on secondary information. McDonalds Background Established in 1937 by Patrick McDonald, McDonald’s was a small burger stall, which sold burgers and milkshakes. The most important aim Patrick McDonald’s worked hard towards was having a combination of an excellent service, low prices, and big sales volumes (McDonalds’ Canada, 2007). Ray Kroc, who at the time was a milkshake mixer salesman, was impressed by how rapidly customers were served and, seeing an opportunity to sell many more milkshake machines, decided to affiliate......

Words: 1950 - Pages: 8

Mc Donald's

...Mc Donald’s case: I. Overall success: -Founded: 1955 - Franchising since: 1955 - History: Ray Kroc, a milkshake mixer salesman, ventured to California in 1954 to visit McDonald's hamburger stand, where he heard they were running eight mixers at once. Kroc was impressed by how rapidly customers were served and, seeing an opportunity to sell many more milkshake machines, encouraged brothers Dick and Mac McDonald to open a chain of their restaurants. Kroc became their business partner and opened the first McDonald's in Des Plaines, Illinois in 1955. McDonald's and the Golden Arches have since become an internationally-recognized symbol of quick-service hamburgers, fries, chicken, breakfast items, salads and milkshakes. - The business model works, and with national and international advertising, McDonald’s Corporation manages to serve 27 million Americans everyday. - 32,478 units gives employments to 1,5 million people (2009). - McDonald's brand is in 122 countries around the world. Over thirty thousand locations serve 51 million customers worldwide each day. - More than 70 percent of McDonald's restaurants around the world are owned and operated by independent local businesspeople. - Revenue: $22,745 million (2009) II. Mc Donald’s and franchisee agreement: * Initial required cash liquidity: 300,000 (2009) * Total investment: $1,057,200 - $1,885,000 - Franchise fee: $45,000 - Terms of agreement: 20 years, renewal * Initial (franchise) fee *......

Words: 773 - Pages: 4

Asdklfbsd.Z, Mc

...learning and is used to record and report what students have learned. This assessment contributes to report card grades. Term Work (70%) – Assessement of learning during the term will include case studies, individual and team projects (marked individually), tests, unit assignments, and presentations. These will be based on the following learning categories: Knowledge/Understanding Thinking & Inquiry Communication Application Summative Evaluation (30%) Exam 15% Final Culminating Project 15% Weekly Routine Students are to download and print “Week Aheads.” These outline the plan for the week. They will be posted by Friday of the previous week or earlier. Students may also be required to download and view PowerPoint presentations, lecture notes or upcoming assignments. Students are expected to read the required readings and cases prior to the Monday of the week. Students are required to maintain a binder with dividers for each unit. At the front of each unit, students are required to keep definitions of weekly terms and answers to weekly questions. Evaluation dates and times including those for tests, assignments, case studies and presentations will be scheduled with adequate notice. At that time, students who need to make arrangements for an alternative date need to do so. Looking forward to a great semester! Ms. Senese  ...

Words: 517 - Pages: 3

Mc Donalds

...their father Patrick Mcdonald in 1937 was having a hot dog cottage called as Airdrome restaurant near the airport. I. Situation analysis Economic factors: Currency trade likewise have an extraordinary effect on any organization. USA has a High duty ratio, Low unemployment created country, dealing in international money (Dollars).Business for Mc donalds in USA is as of now settled and low gambled yet for India high unemployment rate, dealing in Rupees as coin and a huge number of individuals living beneath neediness line is a sympathy toward Mcdonalds. Culture: One can't envision a day when the road side 'vada pav', "chaat" slowdown in our urban communities will vanish. It's such an essential piece of who we are as Indians. Demographics: McDonalds has made its surroundings suitable for school/understudies to home base with their companions and snatch their lunch at McDonalds. Psychographics: McDonalds has adjusted by comfort and way of life of the Indian buyers, as India has an enormous vegan populace so McDonald's thought of an alternate and new product offering which incorporates things like Mc Veggie burger and Mc Aloo tikki Burger. Consumer Behavior: There is exploration required to figure out the dietary patterns of individuals in an aggressive setting. . It is giving play territories to guarantee various families visit its outlets with youngsters. Porter’s five forces 1)Threats of New Entrance: It is difficult to make a noticeable brand name. New......

Words: 787 - Pages: 4

Mc Donalds

...effectively in drawing out the strengths and weaknesses of these fast food brands which have directly affected how successful are they as the competitors in the fast food industry. One of the news which the researcher had found online is Will A $15 Wage Help McDonald's Make Better Burgers And Fries Or Break The Iconic Franchise? According to this news, a raise in the wages of the employee might be able to increase the revenue of Mc Donald’s due to satisfactions the employee they have for McDonald’s. (Forbes, 2015) Through the study of this research, the researcher was expecting to know more about as well as McDonald’s but also its competitors like KFC, Pizza Hut and Subway that was beyond his knowledge. Further than that, the researcher was also expecting to improve his writing skills through this research. Questions like if McDonald’s is the most preferable option among the brands and if McDonald’s food is more healthy in general compared to other brands are also expected to be answered at the end of the research he was doing. Analysis In order to find out if Mc Donald’s is the most successful brand in the world, the researcher decided to obtain the opinions of the public through surveys. He created a survey form and printed them into 20 copies. Then, he went to the public and distributed them to 20 people for them to answer 10 questions which are relevant to the hypothesis he was trying to prove. The range of the age of the people who filled up the 20 survey forms......

Words: 2639 - Pages: 11

Revision Notes for Mc

...WHAT IS ADVERTISING? A PAID MEDIATED FORM OF COMMUNICATION from and IDENTIFIABLE SOURCE, designed to PERSUADE the receiver to take some action, now or in the future. TRADITIONALLY defined as any PAID NON-­‐PERSONAL COMMUNICATION about an ORGANIZATION, PRODUCT/SERVICE OR IDEA by an IDENTIFIABLE SOURCE. PAID refers to ADVERTISING generally being BOUGHT, apart from community messages that are donated. NON-­‐PERSONAL refers to the MASS MEDIA CHANNELS; TV, Radio, Newspaper, Magazines, therefore no immediate feedback. THE MANY ROLES OF ADVERTISING The nature and purpose of advertising differs from one industry to another and across situations. Can be done by an industry to stimulate demand for the product category. EXAMPLE: RED MEAT, FEEL GOOD CAMPAIGN FOR THE AUSTRALIAN MEAT AND LIVESTOCK CORPORATION. à TO COMMUNICATE AND PERSUADE Advertising is still the most cost effective way to reach large audiences, therefore is a very important integrated marketing communication tool. à BRAND EQUITY Valuable tool for building company image; provides consumers with information as well as influence perception. Extremely important when products are difficult to differentiate through functionalities. à BRAND IMAGE Important role in the purchasing decision, advertising is the best tool to build brand image. EXAMPLE: BIGPOND “KEEP THE RABBITS OUT” COMMERCIAL; INCREASED PERCEPTION OF BRAND TO BE CONSIDERED WELL-­‐LIKED, CLEVER AND CAPABLE OF SUPRISING PEOPLE. LIKEABILITY TRANSLATED INTO......

Words: 364 - Pages: 2

Mc Donald's

...| An essay on mc donald'sWhile many learned professors have abandoned hope of ever discovering the truth behind mc donald's, I for one feel that it is still a worthy cause for examination. At one stage or another, every man woman or child will be faced with the issue of mc donald's. Remarkably mc donald's is heralded by shopkeepers and investment bankers alike, leading many to state that its influence on western cinema has not been given proper recognition. It still has the power to shock the upper echelons of progressive service sector organisations, trapped by their infamous history. At the heart of the subject are a number of key factors. I plan to examine each of these factors in detail and and asses their importance.Social FactorsSociety is a simple word with a very complex definition. When Lance Bandaner said 'twelve times I've traversed the ocean of youthful ambition but society still collects my foot prints' [1] he could have been making a reference to mc donald's, but probably not. Both tyranny and democracy are tried and questioned. Yet mc donald's smells of success.Some analysts have been tempted to disregard mc donald's. I haven’t. It grows stonger every day.Economic FactorsDerived from 'oikonomikos,' which means skilled in household management, the word economics is synonymous with mc donald's. We will study the JTB-Guide-Dog model, which I hope will be familiar to most readers. Annual Military Budget | | | | mc donald's | It is apparent from the graph......

Words: 545 - Pages: 3

Mc Donald's

...pertaining to the use of prison and forced labor. What is the time frame of each issue? The time frame stem from 1997, 2000, 2003 and the 1990’s. Which issues should have the highest priority? I believe that the treatment in the workplace should have the highest priority. Because of the child labor, working hours, compensation and discrimination practices. What overall strategy should McDonald’s adopt dealing with these nonmarket issues? Calorie intake had increased about 10 percent, and the strenuousness of work had decreased. Moreover, technological change had substantially reduced the relative cost of food, leading people to eat more while Mc Donald’s contribution on the obesity crises, and related epidemics of heart disease and diabetes. The cheeseburger bill strips the public to seek redress against food manufacturer for their Mc Donald’s should practice fair labor, environmental, and animal welfare practices throughout their corporation because they have a bigger reasonability to their consumers. Reference David. Baron, Business and its Environment, Sixth Edition; 2010 Prentice Hall....

Words: 283 - Pages: 2

Grey's Anatomy S1-S12 Web-DL 2.0 720p x265 HEVC-ByteShare[UTR]v2 | Shalita Grant | Caçada ao Presidente (Big Game) 2014