RSM429H1 Lecture Notes - Lecture 3: Vershire, Vermont, Opportunity Cost
Document Summary
Mgmt control influencing members of the organization in order to implement the strategies of the company. Balancing short-term results against long-term capabilities and growth opportunities. Coordinating activities of several parts of the org, communication is key, evaluation of info. Goal (cid:272)o(cid:374)grue(cid:374)(cid:272)e: goals of the i(cid:374)di(cid:448)idual (cid:373)e(cid:373)(cid:271)ers should (cid:271)e (cid:272)o(cid:374)siste(cid:374)t (cid:449)ith the orga(cid:374)izatio(cid:374)"s goals (examples: budgets, performance) Once the strategy is formulated and you have objectives you want to achieve, the management control should be assisting with this. Corporate goals set by ceo and senior managers ex. profitability, overall want to increase shareholder value. Profit should be at least equal to cost of capital. All orgs take on risk and it has to be managed. Two levels of strategy: strategy for whole org and departmental. Overall strategy should be linked to mission (mission statement) Decentralization: systematic delegation of authority at all levels of mgmt. and in all of the org.
