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Multinational Corporation Case Study

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Management Control System in Multinational Corporations: Study on Italian Business Group

Assignment Submitted By
Anu Joy
1528937
MBA Executive
3rd Semester

Table of Contents
 Introduction.
 Abstract.
 Need of the study.
 Scope of the study.
 Objective of the study.
 Meaning of Management Control System.
 Literature Review
 Critical Analysis.
 Conclusion

Introduction

The case is analysis on management control system that is implemented in various multinational organization and how MCS helps maintain relationship between the organization and monitor work and improve performance of the entire group. When designing the control system certain thing needs to be considered like organizational structure, …show more content…

FIAT
Fiat operates in the automotive industry, In Italy it is the most well-known firm whose history has been linked to Italy’s since its origin. The company is as an equity group and develops industrial and financial activities in the industry. The core business of FIAT is divided into four areas:
1. Agriculture and construction machines,
2. Industrial vehicles and Components;
3. Production systems.

Divided into two levels, the first is represented by the holding, with its service function. The second level is further divided into four areas, each managed and who directly reports to Group CEO.
Each business segment is directly administered by the CEO. Every area existing in Fiat is termed as is a legal entity which intern controls the entire Fiat business. The responsible managers help in caring out various support activities, such as
a) foreign relations
b) investor relations
c) finance
d) human resource management
e) industrial relations
f) Internal audit and purchasing.

As mentioned above every manager is responsible to the CEO not the function heads. Additionally, the finance division of Fiat Company is further broken into
1. Treasury

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