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Strategyic System

In: Business and Management

Submitted By Bsgood
Words 838
Pages 4
Case study research offers the potential for a deeper examination of the processes involved in the relationship between MCS and strategy formulation and implementation. The aim of case research is not necessarily to identify the best fit between MCS, strategy and other variables, but to study the interactions between
MCS and strategy. This may be contrasted with the empirical research reviewed in the preceding section that was cross-sectional in design and therefore presented a static view of MCS and strategy; the dynamic nature of the relationships cannot be inferred. Also, case studies can allow a wide range of controls to be studied, including those that are difficult to measure with surveys. In this section, the cases reviewed address a series of Interrelated issues: managers’ perceptions as mediating the link between MCS and strategy, the role of MCS in effecting or impeding strategic change, and choice of interactive and diagnostic controls to manage strategy. Managers’ perceptions as mediating MCS and strategy. Archer and Otley (1991) presented a rich description of the control system used in an agricultural manufacturing company.
The managers of Rumenco saw their company as having limited opportunities to determine and pursue strategic goals, due to the declining industry and capital resource limitations.
Managers characterized their competitive advantage as cost leadership (production) and
222 K. LANGFIELD-SMITH product differentiation (based on technical expertise) within a specialized niche market.
Rumenco was a small company that relied on a mix of formal and informal controls. The choice of formal controls reflected managers’ thinking about the existing strategy. Extensive budgetary controls and detailed cost reports supported the production cost focus, and extensive market information supported the
maintenance...

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