Introducing the First Management Control Systems: Evidence from the Retail Sector

2007 ◽  
Vol 82 (1) ◽  
pp. 265-293 ◽  
Author(s):  
Tatiana Sandino
Keyword(s):  
Control Systems ◽  
Management Control ◽  
The Other ◽  
Management Control Systems ◽  
Retail Sector ◽  
First Category ◽  
Better Than

Focusing on a sample of U.S. retailers, I study the management control systems (MCS) that firms introduce when they first invest in controls, and identify four categories of initial MCS, which are defined in terms of the purposes these MCS fulfill. The first category, “Basic MCS,” is adopted to collect information for planning, setting standards, and establishing the basic operations of the firm. The other three categories are contingent on more specific purposes: “Cost MCS” focus on enhancing operating efficiencies and minimizing costs; “Revenue MCS” are introduced to foster growth and be responsive to customers; and “Risk MCS” focus on reducing risks and protecting asset integrity. I hypothesize and find that the choice among these categories reflects the firms' strategy, and that firms that choose initial MCS better suited to their strategy perform better than others.

Driving Performance in the Retail and Banking Industries: The Consequences of Dysfunctional Management Control Systems at W. T. Grant and Wells Fargo

2020 ◽  
Author(s):  
Allyson A. Heitger ◽  
Dan L. Heitger ◽  
Lester E Heitger
Keyword(s):  
Control System ◽  
Control Systems ◽  
Performance Measures ◽  
Driving Performance ◽  
Management Control ◽  
The Other ◽  
Management Control Systems ◽  
Managerial Accounting ◽  
Management Control System ◽  
Strategy Performance

Management control systems-strategy, performance measures, and incentives-play a vitally important role in the success or failure of organizations. As such, management control systems represent one of the foundational topics in managerial accounting. However, as the case illustrates, developing, implementing, and continuously enhancing a management control system to be effective often proves very challenging. Therefore, the case develops students' ability to critically assess the interrelationships between these three management control system elements. In particular, students are immersed into two dysfunctional management control systems-one at W. T. Grant in the 1970s and the other at Wells Fargo in the 2010s-to highlight the complexities, challenges, and power of such systems to elicit both positive and negative behavioral and decision impacts on employees, customers, regulators and, ultimately, shareholders. In so doing, the case also increases students' interest in studying managerial accounting, as well as their realization of its importance to an organization's success or failure.

The Effect of Management Control Systems during the COVID-19 Pandemic: Does the Market Appreciate the Breadth of Vision?

2020 ◽  
Author(s):  
Jacobo Gomez-Conde ◽  
Ricardo Malagueño ◽  
Ernesto Lopez-Valeiras ◽  
Fabricia Rosa ◽  
Rogerio Lunkes
Keyword(s):  
Control Systems ◽  
Management Control ◽  
Management Control Systems
Sign in / Sign up

Export Citation Format

Share Document