Management Control Systems and Decision-Making Strategy Essay

Management Control Systems and Decision-Making Strategy - Essay ExampleKober, Ng and Paul (2007, p. 427) reveal that a corporate strategy is not constant but is subject to conditions like entry into new markets or acquisitions. However, changing strategy is subject to uncertainties and deviations from specify measures that only MCS mechanisms can overcome. Although addressing deviations from actual metrics involves using diagnostic controls, uncertainties require continued dialogue and debate amongst managers and between managers and subordinates, and facilitate development and consideration of new ideas and information. such information and ideas generated from MCS are essential for informed decision-making(Kober, et al., 2007, p. 429). Consequently, Langfield-Smith (1997, p. 210) reveals that informed decisions form the basis for strategic management, which ranges from strategic cookery to implementation. Further, the role of strategy formulation is solely a managerial activity that is concerned with establishment of strategies piece strategy implementation is concerned with the translation of the formed strategy into actions(Porter, 1990, p. 44). The management additionally ensures that all defined strategic actions have resources and administrative systems allocated to them. The formation strategy has to respond to expected reforms to sample differentiation from competitors and seek new markets(Kober, et al., 2007, p. 447). Although the strategy informed by MCS is essential for effective organizational management, the priorities of the strategy may be insufficient to acquire competitive advantage or high organizational performance(Chenhall & Langfield-Smith, 1998, p. 243).