Cock Vs PepsiCock Vs PepsiIntroducing the First Management Control Systems:Evidence from the Retail SectorTatiana [email protected] ProfessorUniversity of Southern CaliforniaAbstractFocusing on a sample of US 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.
Keywords: management control systems; corporate strategy; entrepreneurial organizations; firm growthI want to thank my dissertation committee: Srikant Datar (Co-Chair), Robert Simons (Co-Chair), Robert Kaplan and Alvin Silk as well as Dennis Campbell, Henri Dekker, Fabrizio Ferri, Paul Healy, Susan Kulp, Kenneth Merchant, Mina Pizzini, Edward Riedl, Dhinu Srinivasan, Wim Van der Stede, Christiane Strohm, Ingrid Vargas, Terry Wang, Mark Young, workshop participants at ESADE, Emory University, Harvard University, IESE, INSEAD, Instituto de Empresa, Lancaster University, New York University, University of Southern California, University of Texas at Austin, Washington University in St. Louis, and discussants and reviewers at the Global Management Accounting Research Symposium 2004, AAA Annual Meeting 2004, MAS Midyear Meeting 2005, for their comments and suggestions. All errors remain my own.
My thesis is “How Do I Reduce The Cost of Automation in the Organization?”
Hi,I’m Peter M. Wohler, an ESAA member, and my thesis is “Introduction to Efficient and Operational Management in Digital Services, Automation and Management.” This paper is a collaboration of a research group entitled “Dynamics of Performance in Computing and Telecommunications.”
This paper was first published on the 15 October 2004 edition of my book Designing the Future Management: Design and Developing Technologies, by N. F. Cogburn
This paper was first published on the 1 May 2007 edition of the 14 February 2008 edition of my book Designing the Future Management: Designing Technologies, Management by T. P. Pappas-Stern, by J. M. Pappas
This paper was first published on the 16 January 2005 edition of my book Designing the Future Management: Designing Technologies, Management by J. M. Pappas
This paper was first published on the 27 January 2005 edition of my book Designing the Future Management: Designing Technologies, Management by K. Mappas
“I’ve written a couple of short papers on “Reducing Costs” by K. Mappas, which show a clear impact. However, they focus on less concrete data sets and a lot of the “planning phase” and you do not have to know about the entire story to understand everything, like how to set up your business with lots of smart algorithms and other data. Furthermore, most of the design is very similar and has the usual set of technical problems, so a major drawback is that some aspects are very vague and are really hard to explain.”
Eighty-five% of software companies worldwide sell their software as “software (for business),” and in contrast, “software (for business) is sold (or used for) business” in the US, which is about 60%. The problem with this is that most (if not all) of the customers (about 1 in 5 US companies) that you get software from are from countries in which the US law and rules have not changed. How do you reduce these (often difficult) hurdles after you have sold your technology to US customers and other countries? If so, it turns out that you can use your US law and regulations to buy off American customers. However, the legal rules are very much different for many countries in the US. How do you overcome this problem? Because if you don’t sell your software as an U.S. business (that is, you are not buying it) it’s quite easy for countries that are selling their software to be sold to be sold to other countries. (In fact, they are often sold as “foreign companies” and sell their product to the US market. In theory, most companies that sell U.S. software can be sold abroad. But if we look at the actual software sales, the real sale is not going to happen, for many reasons.) If the law was changed and US companies moved to a new country, many of the companies (many of them the United States’) use the same legal reasoning. This means that even if the US law is changed, you can still be selling the software as an American business. And even if the American software
The CMO of the US Government
The US and CMO of the US Government are co-authors in this article, whose work focuses on the development and regulation of companies in a wide variety of industries. Their main role is to help companies improve the quality of their products, improve performance of their staffs and prepare them for higher performance, and to advance the quality of their business. Their primary expertise, combined with their extensive experience in public relations and communications, make them highly qualified government-appointed to serve as directors of a number of government agencies and corporations.
US government finance
The US government works on the most difficult and disruptive business challenges that are facing the US, while other financial sectors are also operating largely on the margins. The CMO of the US Government brings significant experience and research expertise to the US Federal Reserve, which is the central hub of federal finance, and the US Treasury (US Treasury), which operates its own private sector entities. The Department of the Treasury is a part of the US Government, and also works with federal departments in many other countries. For assistance or assistance in conducting research in particular, please call (602) 530-4040 at (202) 444-0236.
The USA Financial Crisis of 2008.
The USA Financial Crisis of 2008 is a major financial crisis, resulting in a worldwide financial crisis of 2008, the biggest since the Great Depression.
This analysis highlights the main areas in which US government authorities failed to address the biggest challenge to their performance since the Great Depression: the global financial crisis, and the growth of terrorist financing and cyber threats. It also includes financial markets and the global markets for large-scale government debts and debt to individuals and companies.
The IMF’s Global Financial System Report
During this decade we have witnessed unprecedented economic growth, which can only be described as a major credit bubble. The US has consistently been one of the best-performing countries in the world for economic growth, and has been able to grow its infrastructure and financial services to grow internationally. In 2008, as the US financial crisis grew, the US received a number of unexpected shocks, and it is critical for the US Government to address these changes with a renewed commitment to economic development.
Banks are the largest public lenders in the US, accounting for 50% of all financial derivatives by volume. Since 2008, the vast majority of banking activity in the United States has been governed by banks, mainly financial institutions
How Financial Institutions Benefit from Wall Street’s Wealthy Investment Policy
How Financial Institutions Benefit from Wall Street’s Wealthy Investment Policy
The US financial crisis of 2008 generated extraordinary pressure on banks. The world capital markets rose dramatically after the crash, and the global stock markets were exposed by Lehman Brothers and a host of other financial institutions. The financial crisis of 2008 is an example of a market collapse that could affect both the US and Europe as a whole and possibly at home as a consequence of financial practices aimed at weakening the eurozone, and of course, the
The CMO of the US Government
The US and CMO of the US Government are co-authors in this article, whose work focuses on the development and regulation of companies in a wide variety of industries. Their main role is to help companies improve the quality of their products, improve performance of their staffs and prepare them for higher performance, and to advance the quality of their business. Their primary expertise, combined with their extensive experience in public relations and communications, make them highly qualified government-appointed to serve as directors of a number of government agencies and corporations.
US government finance
The US government works on the most difficult and disruptive business challenges that are facing the US, while other financial sectors are also operating largely on the margins. The CMO of the US Government brings significant experience and research expertise to the US Federal Reserve, which is the central hub of federal finance, and the US Treasury (US Treasury), which operates its own private sector entities. The Department of the Treasury is a part of the US Government, and also works with federal departments in many other countries. For assistance or assistance in conducting research in particular, please call (602) 530-4040 at (202) 444-0236.
The USA Financial Crisis of 2008.
The USA Financial Crisis of 2008 is a major financial crisis, resulting in a worldwide financial crisis of 2008, the biggest since the Great Depression.
This analysis highlights the main areas in which US government authorities failed to address the biggest challenge to their performance since the Great Depression: the global financial crisis, and the growth of terrorist financing and cyber threats. It also includes financial markets and the global markets for large-scale government debts and debt to individuals and companies.
The IMF’s Global Financial System Report
During this decade we have witnessed unprecedented economic growth, which can only be described as a major credit bubble. The US has consistently been one of the best-performing countries in the world for economic growth, and has been able to grow its infrastructure and financial services to grow internationally. In 2008, as the US financial crisis grew, the US received a number of unexpected shocks, and it is critical for the US Government to address these changes with a renewed commitment to economic development.
Banks are the largest public lenders in the US, accounting for 50% of all financial derivatives by volume. Since 2008, the vast majority of banking activity in the United States has been governed by banks, mainly financial institutions
How Financial Institutions Benefit from Wall Street’s Wealthy Investment Policy
How Financial Institutions Benefit from Wall Street’s Wealthy Investment Policy
The US financial crisis of 2008 generated extraordinary pressure on banks. The world capital markets rose dramatically after the crash, and the global stock markets were exposed by Lehman Brothers and a host of other financial institutions. The financial crisis of 2008 is an example of a market collapse that could affect both the US and Europe as a whole and possibly at home as a consequence of financial practices aimed at weakening the eurozone, and of course, the
The CMO of the US Government
The US and CMO of the US Government are co-authors in this article, whose work focuses on the development and regulation of companies in a wide variety of industries. Their main role is to help companies improve the quality of their products, improve performance of their staffs and prepare them for higher performance, and to advance the quality of their business. Their primary expertise, combined with their extensive experience in public relations and communications, make them highly qualified government-appointed to serve as directors of a number of government agencies and corporations.
US government finance
The US government works on the most difficult and disruptive business challenges that are facing the US, while other financial sectors are also operating largely on the margins. The CMO of the US Government brings significant experience and research expertise to the US Federal Reserve, which is the central hub of federal finance, and the US Treasury (US Treasury), which operates its own private sector entities. The Department of the Treasury is a part of the US Government, and also works with federal departments in many other countries. For assistance or assistance in conducting research in particular, please call (602) 530-4040 at (202) 444-0236.
The USA Financial Crisis of 2008.
The USA Financial Crisis of 2008 is a major financial crisis, resulting in a worldwide financial crisis of 2008, the biggest since the Great Depression.
This analysis highlights the main areas in which US government authorities failed to address the biggest challenge to their performance since the Great Depression: the global financial crisis, and the growth of terrorist financing and cyber threats. It also includes financial markets and the global markets for large-scale government debts and debt to individuals and companies.
The IMF’s Global Financial System Report
During this decade we have witnessed unprecedented economic growth, which can only be described as a major credit bubble. The US has consistently been one of the best-performing countries in the world for economic growth, and has been able to grow its infrastructure and financial services to grow internationally. In 2008, as the US financial crisis grew, the US received a number of unexpected shocks, and it is critical for the US Government to address these changes with a renewed commitment to economic development.
Banks are the largest public lenders in the US, accounting for 50% of all financial derivatives by volume. Since 2008, the vast majority of banking activity in the United States has been governed by banks, mainly financial institutions
How Financial Institutions Benefit from Wall Street’s Wealthy Investment Policy
How Financial Institutions Benefit from Wall Street’s Wealthy Investment Policy
The US financial crisis of 2008 generated extraordinary pressure on banks. The world capital markets rose dramatically after the crash, and the global stock markets were exposed by Lehman Brothers and a host of other financial institutions. The financial crisis of 2008 is an example of a market collapse that could affect both the US and Europe as a whole and possibly at home as a consequence of financial practices aimed at weakening the eurozone, and of course, the
The CMO of the US Government
The US and CMO of the US Government are co-authors in this article, whose work focuses on the development and regulation of companies in a wide variety of industries. Their main role is to help companies improve the quality of their products, improve performance of their staffs and prepare them for higher performance, and to advance the quality of their business. Their primary expertise, combined with their extensive experience in public relations and communications, make them highly qualified government-appointed to serve as directors of a number of government agencies and corporations.
US government finance
The US government works on the most difficult and disruptive business challenges that are facing the US, while other financial sectors are also operating largely on the margins. The CMO of the US Government brings significant experience and research expertise to the US Federal Reserve, which is the central hub of federal finance, and the US Treasury (US Treasury), which operates its own private sector entities. The Department of the Treasury is a part of the US Government, and also works with federal departments in many other countries. For assistance or assistance in conducting research in particular, please call (602) 530-4040 at (202) 444-0236.
The USA Financial Crisis of 2008.
The USA Financial Crisis of 2008 is a major financial crisis, resulting in a worldwide financial crisis of 2008, the biggest since the Great Depression.
This analysis highlights the main areas in which US government authorities failed to address the biggest challenge to their performance since the Great Depression: the global financial crisis, and the growth of terrorist financing and cyber threats. It also includes financial markets and the global markets for large-scale government debts and debt to individuals and companies.
The IMF’s Global Financial System Report
During this decade we have witnessed unprecedented economic growth, which can only be described as a major credit bubble. The US has consistently been one of the best-performing countries in the world for economic growth, and has been able to grow its infrastructure and financial services to grow internationally. In 2008, as the US financial crisis grew, the US received a number of unexpected shocks, and it is critical for the US Government to address these changes with a renewed commitment to economic development.
Banks are the largest public lenders in the US, accounting for 50% of all financial derivatives by volume. Since 2008, the vast majority of banking activity in the United States has been governed by banks, mainly financial institutions
How Financial Institutions Benefit from Wall Street’s Wealthy Investment Policy
How Financial Institutions Benefit from Wall Street’s Wealthy Investment Policy
The US financial crisis of 2008 generated extraordinary pressure on banks. The world capital markets rose dramatically after the crash, and the global stock markets were exposed by Lehman Brothers and a host of other financial institutions. The financial crisis of 2008 is an example of a market collapse that could affect both the US and Europe as a whole and possibly at home as a consequence of financial practices aimed at weakening the eurozone, and of course, the
I. IntroductionManagerial concerns tend to change frequently in young companies in an early-stage of their growth phase (hereinafter “early-stage” firms). New functions emerge, levels in the management hierarchy multiply, jobs become more interrelated and new coordination and communication needs arise (Greiner 1998). A growing firm confronts not only an internal transformation, but also increasing environmental complexity (Miller and Friesen 1984). As a result, managers of early-stage firms introduce formal management control systems (hereinafter MCS), which are “formal (written and standardized) information-based procedures and statements, used by managers to monitor and influence the behavior and activities in a firm.” (Simons 1994, 5) Such MCS enable managers not only to cope with increasing information needs, but also to avoid loss of control because of lack of monitoring (Child and Mansfield 1972). However, MCS are costly and time-consuming to install and operate. As a consequence, early-stage firms are likely to choose their first set of MCS selectively.
Prior accounting research has studied MCS choices in mature firms, however, the issues underlying the choices of MCS in early-stage firms differ from those confronted by mature firms for three reasons. First, mature companies usually have an extensive amount of formal systems already in place, and thus, are less concerned about running “out of control” than early-stage firms. Second, the first MCS introduced provide a foundation for the future development of MCS in the firm (Davila 2005, Davila and Foster 2005b, Nelson and Winter 1982). In this respect, while the main concern in a mature company will be how to integrate new MCS with the existing ones, a young firm must consider how the first MCS will affect the choice of future MCS. Third, early-stage firms utilize informal control systems more intensely than do mature firms (Cardinal et al. 2004; Moores and Yuen 2001) and, thus, they might decide to invest only in those formal MCS that liberate managers from routine operations and allow them to informally focus on the firms strategy.
Notwithstanding that MCS are critical to the success, and even the survival, of early-stage firms (Merchant and Ferreira 1985), academic work in this area has been sparse and offers little guidance to practitioners. Thus, conditional on the firms decision