Premium Essay

Control Mechanisms

In: Business and Management

Submitted By OneBattyBtch
Words 978
Pages 4
Starbucks: Control Mechanisms

Starbucks: Control Mechanisms Starbucks is the leading coffee company in the world. They have locations around the world, many of which are independently owned. In order for the corporation to keep accurate records on the stores, they have implemented many types of controls. Four types of controls used in the Corporation are Bureaucratic Control, Budgetary Control, Financial Control, and Concurrent Control. Bureaucratic Control Bureaucratic controls are control higher up the chart of an organization, have authority to dictate policies and procedures. This control starts with the board of directors, followed by the Chief Executive Officer, vice presidents, and continues as necessary. Starbucks’ bureaucratic manages through policy rules and number of operating procedures, which helps to determine the behavior of divisions, functions, and individuals. The essential of Bureaucratic Controls, the profit motive on a larger-scale enterprise tend to help the business grow and achieve a higher level of profit. The stock market valuation of the firm is the influence by expectation of future sales and profit, produce negative growth. The cost motive the economics of scale could have an effect of increasing the productive capacity of the business, and help increase the profit margins. The market power object can increase job market dominance and increase pricing power. The risk concept provide the business expansion by stimulation with diversify production and sales, this resolution calls sales to fall in one market and rise in another (Growth Firm).
Budgetary Controls
Starbucks budgetary controls would begin with what is sold and expected income from that sale. The advantages of formulating budgetary controls are to reduce cost to maximize profits, and to determine weak spots for elimination. The...

Similar Documents

Premium Essay

Control Mechanism

...Control Mechanism For Best Buy Joanne Forde MGT/330 March 7, 2011 Dorothy Galiger Control Mechanism For Best Buy An effective control system within any organization must provide detailed information that is both valuable in its measure and consistent in its delivery. Such qualities of a control system are essential for management to harness it for the greater good of the organization. Control systems must be a fluid expansion of the control aspect of the organization’s strategic planning. Best Buy is a good example of a company that utilizes control systems to assist in company operations. These controls are not without their negative consequences, but for the most part, they serve as a beneficial tool for the company in achieving its goals. Control systems specify standards of performance, monitor, and measure company performance, and use data collected to compare the company outcomes to internal standards. Controls also assist in making steps toward continued improvement by reinforcing successful techniques and revising the less successful ones. Best Buy uses four distinct types of controls to maintain and drive the success of their organization: Feed forward control, market control, financial control, and Bureaucratic control. Feed Forward Control is aimed toward preventing problems before they begin by setting standards in place to reduce company loss. For example, Best Buy offers customers a return policy, but only gives cash refund with a receipt or...

Words: 1882 - Pages: 8

Premium Essay

At&T Control Mechanisms

...AT&T Control Mechanisms AT&T Environment Controls For more than a century, the control environment of AT&T has consisted of their brand, cost advantage, volume, and the scale of users in business partners. AT&T utilizes their control mechanisms in different ways. AT&T cost advantage offers competitive prices to similar services. AT&T offers cellular phone service, U-verse digital television, and home phone service. These services can be bundled to deliver consumers competitive prices. While comparing and contrasting different services to consumers, AT&T continues to grow, break into new ground, and focus on high-quality customer service which is part of their heritage. Effectiveness of Controls AT&T is a long way from its first initial start. "In the pursuit of market dominance, AT&T has acquired quite a few of their minority competitors. In the last twenty years, AT&T has absorbed nearly twenty companies with combined annual revenues of more than $3 billion at their respective sale dates, for the purpose of horizontal market expansion (Fact Set Merger stat, 2012). They have been on a steady incline, by the smart choices they have made. This is all possible because they consistently focus on preparing their employees with all the tools to succeed and flourish; they also diversify their departments and this allows for new ideas and innovations to flow from the top to the bottom of the organization. Positive and Negative......

Words: 524 - Pages: 3

Premium Essay

Four Types of Control Mechanisms

...Four Types of Control Mechanisms Control mechanisms are used to monitor progress and evaluate performance. System control, Bureaucratic control, Market control, and Clan control are all mechanisms that Target use to operate at peak performance. System control uses a set of procedures designed and established to check or regulate a resource or system. Bureaucratic control consists of formal rules and regulations that establish authority. It also set standards and regulate employee behavior through rules, policies, hierarchy of authority, written documentation, reward systems, and other formal mechanisms used to also influence employee performance. Examples of the bureaucratic control system could be audits or Code of Business Conducts. Market control adjusts activities by analyzing the competition, analyzing profit and loss and converting economic information. Some examples of market control would be cash flow statements, budgets, marketing research, sales analysis, etc. Clan control, the opposite of bureaucratic control, embodies cultural values, beliefs, corporate culture, shared values, traditions, professional standards and even informal relationships to aid the reaching of organizational goals and control behavior. A few examples of clan control would be dress styles and work hours. A real life example can be seen with the success of Japanese firms recently which American corporations began to take note of and even emulate. Because Japanese firms operate more like......

Words: 336 - Pages: 2

Premium Essay

Control Mechanisms of Walmart Corporation

...Control Mechanisms of Walmart Corporation Companies all across the world use control mechanisms to achieve and monitor the success of the organization. If a company has planned poorly the goals, objectives, or a disagreeing management, the likelihood of the company surviving for any length of time becomes slim and considered an out-of-control company. Managers today must control their people, inventories, quality, and costs, to mention just a few of their responsibilities (Bateman & Snell, 2009). The three broad strategies for achieving organizational controls consist of bureaucratic control, market control, and clan control (Bateman & Snell, 2009). When planning for these controls managers follow four steps for each: setting performance standards, measuring performance, comparing performance against the standards, and determining deviations, along with taking actions to correct problems and reinforce success. The paper will focus on the control mechanisms of Walmart Corporation and how the mechanisms compare and contrast from others, their effectiveness, positive and negative reactions, and how each affect the four functions of management. Walmart Corporation Walmart serves more than 200 million customers and members throughout their 8,650 retail units between the companies 55 operating banners in 15 countries on a weekly basis (Walmart, 2010). With sales in 2010 of over $405 billion, employing more than Two million associates worldwide, and receiving the title of......

Words: 1695 - Pages: 7

Premium Essay

Control Mechanism of Wal-Mart

...Control Mechanisms of Wal-Mart Learning Team B MGT/230 November 11, 2013 Christine Russell Wal-Mart Control Environment Wal-Mart is very successful, and success is motivated by the evaluated and regulated control mechanisms in place. The controls Wal-Mart use are implemented and controlled very strictly. Control mechanisms are defined as a process that directs the activities to achieve the business goals. These controls are market, clan, and bureaucratic controls, which are needed to ensure plans are completed properly. As an organization, Wal-Mart delegates each division to implement their own controls to fit the needs of the division. When integrated with other divisions, this ensures the success and effectiveness of the company. Effectiveness of Internal Controls The responsibility management has for maintaining adequate internal control is designed to provide assurance that the information provided is reliable. The effectiveness of the internal control process was assessed by management and found to be effective as of January 2009 with effectiveness of internal control being assessed by the ethics of the company. Wal-Mart was founded on the belief of the highest ethical standards to be successful. They maintain an “open door” policy that allows the timely addressing of issues within the company. The ethical standards include honesty, trust, and integrity with a higher standard of ethics for senior management. Environmental Controls and Functions of Management ...

Words: 468 - Pages: 2

Premium Essay

Control Mechanism

...Control Mechanism’s Paper Learning Team C MGT 330 September 12th, 2010 Robert Bloomfield Control Mechanism’s Paper Control mechanisms are regularly used with successful organizations to maintain and adjust processes and practices. Wal-Mart is a company that applies control mechanisms to its business functions to remain a global leader in the industry. The four types of control mechanisms that Wal-Mart puts into action are market control, clan control, audit control, and performance standards. Market Control is “the ability of buyers or sellers to exert influence over the price or quantity of a good, service, or commodity exchanged in a market”. (Encarta.com). the next mechanism used is Clan control it “relies on values, beliefs, corporate culture, shared norms, and informal relationships to regulate employee behaviors and facilitate the reaching of organizational goals” (strategic business.com). Audit control is the process of self examination as it relates to accounts and products. Lastly, Performance standards are an organizational approved set of requirements, goals and expectations that employees must meet. These four mechanisms are paramount in today’s business world for effectively and efficiently doing business to meet organizational goals. Wal-Mart has a responsibility to its employees, vendors and the customers to make changes where needed. The economy has influenced the frequency of the changes and requires constant monitoring. The application of......

Words: 2219 - Pages: 9

Premium Essay

Control Mechanism

...Control Mechanisms of Boeing Boeing’s internal controls ensure that the executive leadership and personnel reasonably achieve specified business objectives within tolerable business risk limits. Boeing’s control environment consists of interrelated components, including governance by a functioning of the board of directors (BOD), management’s philosophy and operating styles, assignment of authority, and integrity and ethics values. Boeing’s internal control environment is a reflection of the organizations consciousness, philosophies, and behaviors that emanate throughout the organization from the top down. Continual review, evaluation, and amendments of existing internal controls ensure Boeing’s business goals are met that will ensure a successful future (Corporate Governance Principles, 2013). Effectiveness of Boeing’s Control Mechanisms “The global economy is becoming more integrated than ever before” (International Management, 2011, p. 200). Therefore, Boeing’s control mechanisms enabled them to establish a remarkably diverse team of business partners, employees, and community relations. Boeing’s commitment of providing a welcoming, respectful, and engaging work environment with the possibilities of growth for employees has motivated productivity and innovation. Boeing is creatively building character and discipline in tomorrow’s future by securing values in today’s culture. Reactions to Boeing’s Control Mechanisms Boeing strives to be an industry......

Words: 415 - Pages: 2

Free Essay

Control Mechanisms

...Control Mechanisms: Use and Reaction at Chipotle Mexican Grill Control Mechanisms: Use and Reaction at Chipotle Mexican Grill Control is essential for any company to ensure their business plan is being executed efficiently to achieve its corporate goals. Part of the organization's planning includes which control mechanism best suits the business' core competency. This paper will study how Chipotle Mexican Grill utilizes Control Mechanisms and the reactions from employees and customers and to what degree Chipotle can monitor and control execution of its business plan, will determine the long-term viability of the company’s very existence. Leadership Vision Steve Ells, chef and founder of Chipotle is an inspired leader with a strong desire only to serve delicious and healthy ‘Food with Integrity.’ Integrity in the Chipotle vernacular means a strong commitment to small farmers by serving only naturally raised animals and organically grown vegetables. Culture Chipotle believes their crew members are just as important as their food for sustained success.......

Words: 1358 - Pages: 6

Premium Essay

Control Mechanisms

...MGT 330 –Control Mechanism Paper Control Mechanisms Control mechanisms have many purposes in business management. The control mechanism of employee incentives directly influences the management function of leading (Ganly, 2010). Control mechanisms serve many important purposes; they allow an organization to protect their values they have created as well as the profit of the organization from reduction by competitors, partners, or customers. Control mechanisms add for better predictability, this in turn helps form better business models for an organization. This paper evaluates six different control mechanisms among six different organizations. The control mechanisms are: job descriptions, program evaluations, pay scale, communication, performance evaluations, and disciplinary procedures. Job Descriptions Consolidated Care depends on detailed job descriptions for their employees to be an effective organization. Job descriptions are effective because they establish lines of authority and areas of responsibility. Consolidated Care uses job descriptions not only as an outline of expectations of the employee but also a tool to provide an evaluation criterion and provide motivation. Consolidated Care employees respond both positive and negative to their job descriptions. Job descriptions also provide employees with the guidance of who to go to when a problem arises or questions occur. Though, there are some employees who react negative to job description. These employees......

Words: 1630 - Pages: 7

Premium Essay

Control Mechanisms

...Control Mechanisms for Home Depot Jaclyn Fix, Kelly Gomez, William Miller, and Nicholas Johnston MGT/330 November 14, 2011 Bassam Asfoor Control Mechanisms for Home Depot The four functions of management are planning, organizing, leading, and controlling (Bateman & Snell, 2009). The four types of controls used by Home Depot significantly affect the four functions of management within the organization. Setting performance standards is a part of the planning process while measuring them is part of the control function. Managing performance standards enables the company to have more visibility on what works and what does not in both policy and product. Rectifying problems also plays into each of the functions of management, largely in leading. Home Depot’s corporate and executive levels must monitor the company and identify any potential problems or issues that need to be addressed. Four Types of Control Mechanisms The four types of control mechanisms used for The Home Depot are setting performance standards, measure performance; compare performance against the standards, and taking actions to correct deficiency. The depot sets performance standards during orientation, the standards given are what the company expects from every individual who works for the company. There are also standards given to each individual according to what department he or she works in. For example employees are sales associates, sales specialists, or......

Words: 1793 - Pages: 8

Premium Essay

Control Mechanisms Paper

...Control Mechanisms in Starbucks Corporation MGT/330 Control Mechanisms in Starbucks Corporation “Our mission: to inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time.” (Starbucks.com 2014.) This is the Starbucks mission statement. Starbucks success has been built around this mission statement and how control mechanisms are implemented with this statement in mind. For the purposes of this paper the following four mechanisms will be highlighted; clan, budget, bureaucratic, and market. These mechanisms need to work cohesively to achieve the desired corporate result. Four control mechanisms identified within the Starbucks Company is bureaucratic, budget, clan and market. Like many companies, Starbucks takes a bureaucratic approach. They use “rules, regulations, and authority to guide performance” (Bateman & Snell, 2007, "Managerial Control"). As for as budgetary controls, Starbucks uses budgeting to determine how things are going within the company and the cost it takes to keep the company working at a high/competitive level. The last two control mechanisms, clan control and market control, both tie into the previous two control mechanisms mentioned. Clan control is based on the values, shared goals, and trust between their employees. With that being said, bureaucratic control and clan control helps determine the right people for Starbucks and sets a foundation on how their employees can help themselves and the company be......

Words: 1382 - Pages: 6

Premium Essay

Control Mechanism Paper

...Control Mechanisms Paper November 7, 2011 Control Mechanisms Paper Control mechanism within an organization is a process that manages, and directs the activities of employees toward organizational goals. Control is how capable managers make sure organizational activities are going as corporately planned. The lack of or the wrong kind of control within an organization can cause damage, that sometime can not be repaired (Bateman, T, Snell, S. 2009). Control mechanisms help managers to seek compliance with corporate goals, standards, values, and plans. Control Mechanisms Starbucks has many control mechanism, however the top four mechanisms are what drive the highly successful business. Budget control mechanisms are used to detect, and remove waste thus reducing store-opening cost. Financial controls are used to determine location of stores, and property leasing versus property ownership. Quality control is used to secure the most supreme coffee beans, market control is used for growth, and expansion strategies, and clan control which is used to create a partnership between employees and corporate. Starbucks employees are called partners which develop shared values and beliefs, culture, trust, and expectations. Starbuck’s uses these controls to manage the daily activities of their employees to the extent that they have become the number one coffee house in the world, both nationally, and soon to be internationally as they continue to expand in other......

Words: 1616 - Pages: 7

Premium Essay

Control Mechanism: Disneyland

...Control Mechanism: Walt Disney Company Whitney Leung Tony Saludas Wendy Sanchez Jim Stickell MGT 330 Jack Land “The management function of monitoring performance and making needed changes” is control (Bateman). Control is the fourth and final function that completes the management process and will help guarantee success in an organization. This process will help management ensure that an organization’s will use all necessary resources to achieve their goals effectively and efficiently. The Walt Disney Company and their associated offices have continuously over the years committed to produce creative entertainment experiences made for every family across the world. Today, this major corporation is split into four different business segments in the following categories: media networks, parks and resorts, studio entertainment, and consumer products. (The Walt Disney Company) Since founded in 1923, The Walt Disney Company use control mechanism to maintain regulated guidelines and procedures to achieve their goals effectively and efficiently. This paper will examine, and compare and contrast four types of control mechanisms the Walt Disney Company used: (1) budgetary controls, (2) marketing control, (3) bureaucratic control cycle, and (4) management audits to determine the effectiveness of each by examining the positive and negative reactions to these controls in order to explain how these control mechanisms affect the four function of......

Words: 1467 - Pages: 6

Free Essay

Access Control Mechanism

...Access control through two-Factor Authentication Access Maintaining data security has become more of a challenge, it is tough to anticipate attacks and prevent all the loopholes in software’s providing security. Verizon in their 2013 Data Breach Investigation Report stated that “Almost 80 percent of the attacks could have been prevented by using something other than single-factor username-password.” Two –factor authentication (2FA) when applied is one the best ways to secure your accounts online. It is basically a system that implements multiple factors for a verification process. This authentication stems from the principle of “Something the user knows” this could be a username, phone number, password or a personal question and “Something the user has” this would include a one-time passcode, key generator or a smart card. The verification process is similar to the process you would experience at an airport ticket counter. Your ticket when presented at the security acts as your identification and your photo id like the state-id or a passport through your photo would verify that it is you. Two-way authentication is a method of overcoming the problems associated with the single authentication process, when used efficiently it provides the following benefits. * Improved security: Since this authentication process is a 2 fold approach it ensures that even if a user’s password is compromised the hacker will be denied access until they provide the correct second......

Words: 799 - Pages: 4

Premium Essay

Control Mechanisms of Gm

...Control Mechanisms of General Motors Team A: MGT/230 23-Dec- General Motors Control Environment As one of the world’s largest auto manufacturers, General Motors (GM) has over 212,000 employees in nearly 400 facilities over six continents. Due to the size and divisions, GM takes a multifaceted approach to organizational control mechanisms. This is considered as a balanced scorecard approach (Bateman & Snell, 2011). Their strategic vision is formed by their Board of Directors and CEO/President of the Board, David F Ackerson. Through his lead, the GM management team manages various control mechanisms to oversee this mixture of bureaucratic, market, and clan controls. These controls ensure that the goals formed in their strategic vision are realized at their bottom line. Control Mechanisms Using well-defined policies, procedures and formal authority, the GM management team transfers their strategic vision to its employees. GM uses market controls which includes, pricing mechanisms that influence the profits attained through the new model of vehicles it produces. GM uses clan control to thrive on employees’ creative problem solving skills, as much as on teamwork. Mutual respect, responsibility, and good judgment calls are keys. The controls allow GM to maintain set standards in the areas of product quality, customer satisfaction and competitive pricing. The controls considered perception of GM’s employees. There is concern with all types of controls......

Words: 449 - Pages: 2