🏷️ LIMITED TIME OFFER: GET 20% OFF GRADE+ YEARLY SUBSCRIPTION →
Log in
HomeStudy Guides420,000CA160,000

MGAD40H3 : Levers of Control for Implementing Strategy - Ch. 14

87 views7 pages
pucelouse641
2 May 2011
School
UTSC
Department
Financial Accounting
Course
MGAD40H3
Professor
Prof.Jan Klakurka

For unlimited access to Study Guides, a Grade+ subscription is required.

Document Summary

Levers of control: performance measurement and control system tools available to mngrs to work on achieving profit goals and strategies. Control of business strategy achieved by integrating four levers of beliefs systems, boundary systems, diagnostic control systems, interactive control systems. Dynamic tension b/w opportunistic innovation and predictable goal achievement. Strategy is plan, pattern of actions, product-market position, unique perspective. Intended strategies: plans managers attempt to implement in specific product market based on analysis of competitive dynamics and current capabilities. Emergent strategies: emerge spontaneously as employee respond to unpredictable threats and opportunities through experimentation and trial and error. Realized strategies: outcome of both streams combined, what actually happened. Measure outcomes against preset profit plans and performance goals. Monitor for unanticipated roadblocks or insufficient resources. Tools to influence experimentation and opportunity- seeking, resulting in emerging strategies. Relates to strategy as patterns of action www. notesolution. com. Cohesive pattern that respond to strategic uncertainties. Management vision motivate organizational participants to accomplish overall mission of firm.

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers

Related Documents

MGAD40H3 Chapter 13: Chapter 13 Notes
yellowwasp29
MGAD40H3 Chapter 14: Chapter 14 Notes
yellowwasp29
MGAD40H3
Final Exam
Study Guide
MGAD40H3 : Using Diagnostic and Interactive Control Systems - ch.10
pucelouse641

Related Questions

Provide describe a type of management control (i.e., action,personnel, or cultural). What challenges might the organizationalleaders face when implementing it?

What are potential causes of employee frustration and demotivation?How can management control systems (MCS) be leveraged to improveemployee motivation? Please feel free to use an example.

Entrepreneurial Strategy: Recognizing Entrepreneurial Opportunities, Types of Entrepreneurial Strategy, Competitive Dynamics, the What is an entrepreneurial strategy, types and entrepreneurial opportunities?

True-False

Indicate whether each statement istrue (T) or false (F).

___ 1. A company’smarket share is an example of external nonfinancialinformation.

___ 2. A good reasonfor using ROI as a performance measure rather than RI is that goalcongruence is more likely to be promoted by using ROI.

___ 3. The DuPontmethod of profitability analysis recognizes two basic ingredientsto profit making: increasing income per dollar of revenues andusing assets to generate more revenues.

___ 4. If companiescompensate managers on the basis of changes in the market price ofthe company’s stock, this approach tends to shorten managers’ timehorizon because stock prices incorporate the expected future periodeffects of current decisions.

___ 5. Those who favorusing net book value as the investment base in ROI calculationsclaim this approach enables more accurate comparisons to be madeacross subunits.

___ 6. Comparingperformance of the divisions of a multinational company isdifficult because of economic, legal, political, cultural, andcurrency differences.

___ 7. The necessaryand sufficient condition for moral hazard to exist in a company isthat the employee’s interest differs from the owner’s interest.

___ 8. Performancemeasures that are sensitive to the manager’s performance motivatethe manager but limit his or her exposure to uncontrollablerisk.

___ 9. It can be costeffective to benchmark a manager’s performance against the bestlevels of performance available within the company or in othercompanies.

___ 10. Holding managers and otheremployees accountable for and rewarding them for achievingperformance goals in diagnostic control systems needs to becounter-balanced with boundary systems, belief systems, andinteractive control systems.