Essay on Management Planning and Controlling

661 Words Nov 11th, 2015 3 Pages
Bellagio Casino and Resort
1. Briefly describe the objective(s), strategy and control problems faced in the organization. Bellagio Casino and Resort has its own challenges within the establishment of gaming, entertainment, conference, dining and accommodation products. One of its main objectives is to capture the high-end luxury clients who are looking for a holiday outing and features. These clients are out to spend, and this poses a great opportunity for Bellagio's strategy. Bellagio strategy focuses on diversification of the corporate business investing in a wide range of luxury products. The business unit competitive strategy design allows for low-cost pricing of the products and prices, presenting a competitive edge over the rest
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Political instability may impose the layoff prohibition, forced production and price regulations that may affect the business. Financial risk and inflation may determine the management control system.
Technological factors: Bellagio Casino and Resort entertainment and gaming business is prone to new and emerging changes in technology used in business. Recently, the upgrades in the technological systems have eliminated most of the similar companies from thriving business due to the use of low tech systems affecting the performance measures in the organizations leading to massive competition. (Bemba et al., 2009) This determines the management control systems since they should be aligned to the emerging trends in the state-of-the-art technological tools. Expensive technology may also determine the control costs

Strategic factors: The mission and vision of the company determine the Management Control System that involves the degree of centralization of decision making and performance targets. Management Control systems in Bellagio are impacted on the choices of diversification products and cost budgeting processes.

3. Discuss the potential control costs (both direct and indirect) of MCS. Evaluate whether the MCS is appropriate given these control costs The major control costs that impact the Management Control System (MCS) are employee rewards and compensation which may not be competitive as expected, however, impact on the employee quality