What Is The Interrelationship Between Management Control System And Strategy

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ASSIGNMENT 1: THE INTERRELATIONSHIP BETWEEN MANAGEMENT CONTROL SYSTEMS (MCS) AND STRATEGY. TABLE OF CONTENTS: 1. Introduction 2. Definitions of Management Control System (MCS) 3. Definition of Strategy 4. The interrelationship between Management Control System and Strategy 5. Conclusion 6. References 1. INTRODUCTION: This assignment examines the interrelationship between management control systems (MCS) and strategy. The conventional view is that the MCS is shaped by organisational strategy, where as more contemporary researches suggest that there may be two-way relationships between the two variables. Recently, there has been interest in the relationship between management control system and strategy, however it has been suggested that the…show more content…
Corporate strategy is concerned with decisions about the types of businesses to operate in, including what businesses to acquire or divest, and how best to structure and finance the company (Johnson & Scholes, 1889, p. 9). It is concerned with the way resources are focused to convert distinct competences into competitive advantage (Andrews, 1980, pp. 18-19). Johnson (1987, pp 4-5) stated that strategic decisions occur at many levels of managerial…show more content…
(1990): Strategy, organization and control: some possibilities for accounting research. Accounting, Organizations and Society, vol 15, no 1/2, pp. 3-25. Govindarajan, V. & Gupta, A.K. (1985): Linking Control Systems to Business Unit Strategy: Impact on Performance. Accounting, Organizations and Society, vol. 10, (1), pp. 51-66. Johnson, G.(1987): Strategic Change and the Management Process. Oxford: Basil Blackwell. Johnson, G. & Scholes, K. (1989): Exploring Corporate Strategy: Text and Cases. London: Prentice-Hall. Kober, R. et al. (2007): The interrelationship between management control mechanisms and strategy. In: Management Accounting Research, 18: 425-452. Miles, R. W., & Snow, C. C (1978): Organizational Strategy, Structure, and Process. New York: McGraw-Hill. Mintzberg, H.(1978): Patterns in Strategy Formation, Management Science, pp. 934-948. Roberts, J. (1990): Strategy and Accounting in a U.K. Conglomerate, Accounting, Organfratfons and Society , pp. 107-125. Simons, R. (1994): How new Top Manager Use Control Systems as Levers of Strategic Renewal. Strategic Management Journal, Vol. 15, No. 3, 169-189. Simons, R. (1990): The Role of Management Control System in Creating Competitive Advantage: New Perspectives. Accounting, Organizations and Society 15,
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