The Effect of Business Strategy and External Environment on Management Control Systems

As mentioned the author attempted to accomplish the above goal through a field study where the management control systems on a restaurant chain was assessed. That being said in order to determine if the motivation of the article was achieved is to analyze the

Environmentalism has become a great concern in all sectors of business, evidenced by the recent jump in energy prices, and empirical data provided by several different environmental and scientific agencies. The Hotel industry is no different, in fact, it would benefit greatly from the recent push for all businesses and business sectors to "Go Green." Yet, the industry has long resisted the changes, and is only recently catching up to other industries that have converted their operations to have greener strategies.

As we discussed in class, every business is faced with these issues and they are important to managers making strategic decisions. One of the first things learned about business is that if there is no demand for a good or service, the firm that provides it will not continue to exist. Over time the hotel industry has continued to change with market conditions and make itself attractive to business

In this article Burgess (2007) reviews the needs of departmental managers for having adequate financial skills in hotel industry. The data for research was gathered from both primary and secondary data. The primary research was taken from survey with financial controllers, and secondary research was taken from previous research’ findings to explore the general trends and financial controllers’ opinions. The research focussed on current and future trends in financials aspect of management. This article is useful to research whether departmental managers

Many hotels utilize sustainability as a strategy setting for operations, and as a critical success factor (Boerner, 2010). A company become more sustainable by evaluating the positive and negative environmental, economic, and socio cultural impacts on hospitality industry and helps the operation to be in profit and minimize waste or harmful aspects. Environmental certification program for hotels Provides technical guidance. Participating facilities area warded between 1and5 Green Keys depending on loyalty to criteria (LRA Worldwide,

Nowadays, most markets are developing into progressively dynamic, thus business corporations encounter accelerating change of business environment. As stated by Ashurst & Doherty (2003), the importance of firms to act in the optimum capabilities increasing because of globalisation and other market factors that boost the competition. Therefore, firms need to imply the best control method to achieve this target. Significantly, the objective of the firms should parallel with the actual state of affairs of a business to maintain effective functioning state of the corporations. Merchant (1982) emphasises the need of control to reassure desirable actions and prohibit inadmissible behaviour. There is a lot management control, including financial and non-financial factors. Ittner and Larcker (2000) stress the limitations of control system based on financial data to measure company performance and support the statement by the survey of U.S. financial services firms. Most of the institutions not satisfied with traditional financially oriented, thus made an extensive change in the control system during the past two years. Therefore, this paper is strongly believed that firms should not rely on quantitative targets in uncertain environments. Thus, this essay aims to evaluate a management control system (MCS) as a package from contingency theory viewpoint and further assess the challenges and solution towards that control.

Solar power, water conservation, reducing carbon footprints, electrical and fossil fuel consumption are becoming more important within our society as social attitudes change to incorporate more sustainability practices within our society. Humans have influenced the earth 's ecosystem for many years. Being one of the largest industries in the world, the hospitality industry is an important contributor to these problems. The hospitality industry is a diverse industry ranging from hotels, restaurants, pubs, clubs, motels, guest houses and caterers. Although there is a diversity within the hospitality fields. There are common efficiency measures that can be utilized to improve the reputation, profitability and environmental performance across all the sectors in the industry. Key cost savings can be found relatively simple changes in the management of water, waste, energy and resource use. Reducing these things saves money, minimizes climate change risk, enhances business image and most of all improves customer and staff satisfaction.

Mintzberg(1975) state that a key part of the managers’ job is the processing of information. People, purpose and organization structure consist of structure. No matter managers deal with people or identify purpose, they always involve information. Managers are neither helpless nor all powerful(Robbins, Bergman, Stagg & Coulter, 2008). Gibbs(1996) propose that environmental complexity increase the frequency of informational roles. Besides, Harrison and John(1996) say that stakeholder relationship can affect other organizational outcomes and performance. The following case will discuss how manager manage external environment work as informational role. With the globalization of economy, Hemisphere Hotel(Aus) plan to set up a new hotel in India. Managers of hotel need to identify the stakeholders who they are. Stakeholders can be customers, competitors or government. Firstly, managers seek the information from customers, competitors or other stakeholders and combine with organization internal information. Then, managers share the information with each other to assess the new project. Next, managers make decision about how critical each stakeholder. Finally, managers determine the special approach to manage stakeholder. Stakeholder management is a ability to absorb information and interpret information differently.( Harrison and John1996) Because

The utilization of proper management control techniques is key to an organization’s ability to operate efficiently and effectively. This process boosts performance, improves communication, anticipates adverse events, solves problems, and provides innovation of existing practices. This paper is set up to help explain the purpose of management control and the proficiency of the control process by illustrating the retrospective and anticipatory views. Also, by creating an after action review, a manager and subordinates can alleviate some of the issues of the organization. Along with the purpose of management, this paper will explain the types of control, both internal and external, and the five components that are associated with the

Simons (1995) defines management control systems (MCSs) as formal, information-based routines and procedures used by managers to maintain or adjust patterns in organisational activities. The quality of control systems is referred to their effectiveness, regardless the type, either they exist in positive or negative form. The characteristics portrayed by individual companies are not identical, hence each of them may require different type of controls. Variation in firm’s objectives, strategies, cultures, structures and sizes are the factors that oppose the idea to rely extensively on a control system that use financial target as a single scope of performance measures. Contingency theory postulates “there is no universal applicable control system with universal validity to all organisation in all settings. In contrast, the specific surroundings and external factors an organisation is exposed to shape the system” (CIMA, 2013). Besides, firms may experience unpredictable incidents that occur in many ways such as inconsistent demands, mismanagement of employees, crises with suppliers, economy instability, etc. For these reasons, organisations should adapt their structure to the contingencies, assuming the idea that the greater the adaptation, the better the performance (Junqueira & Dutra, 2015).

“Going green” in the hotel industry does not only contain advantages there are many factors, which can have a drawback for those

The organization has explicitly kept this advantageous environment over other organizations by improving its service capacity. Additionally, the organization ensures that it stays ahead of its rivals by engaging in research and development that focuses on luxury products and markets analysis. The Ritz-Carlton hotel uses data from its research to predict the future of the industry; therefore able to dictate what and how the market will trend in the foreseeable future. Another factor that keeps the organization’s advantage over its rivals is that while rivals tend to become a hotel brand in the industry, Ritz-Carlton has rather position itself to be a leader and lifestyle brand that constantly develop new properties and ensure that customers live the culture of the hotel. The final factor that has kept the advantage of the organization intact is the culture of trust that exists between the management and employees. The leadership of the hotel lives and communicates the organization’s value to its employees who in turn satisfy customers in a way that they often anticipate a return visit. These are some of the reasons that the Ritz-Carlton hotel continued advantageous environment over its rivals has persisted in the hotel and resort industry (Reiss,

The hypotheses was clearly stated and used to provide the initial theoretical framework. The hypothesis was also stimulated from an earlier study that stated that a larger hotel chain conducted a similar study using different variables with a common purpose. [ (Trochim, 2006) ]

The Hotel General Manager is responsible for the overall organization of the property, overseeing every function of the hotel and running the business. They are also responsible for maintaining guest satisfaction, making employees happy, and providing owners with a return on their investments. “The job of the General Manager involves much delegation to the division heads, it also requires much hands-on involvement” (Burns, 2010, p. 28). They “[s]erve as the face of their hotel, projecting from the top down the overall image and tone of the property” (Burns, 2010, p. 28). Empowerment of employees is part of the most important responsibilities of the Lodging Manager and every other supervisor on duty, because happy and empowered employees will serve their customers with the same care they

The way trade and commerce is conducted nowadays has evolved. Everything involving the operations of the organisation demands a more expeditious means of addressing issues and changes in the external environment. Though this apparently would drive weak companies into the verge of exiting the market, the good ones find a way for this intense demand for constant improvement to their advantage. There are some who find a way to make these incessant demands for change trigger the developmental needs of the company. This is especially true in the case of the hospitality industry. In this industry, the focus is more on the service rendered to the public; hence there is a distinct possibility for it to be