CASELECT 1: A company M limited is manufacturing mobile phones both for domestic Indian market as well as for export. It had enjoyed a substantial market share and also had a loyal customer following. But lately it has been experiencing problems because its targets have not been met with regard to sales and customer satisfaction. Also mobile market in India has grown tremendously and new players have come with better technology and pricing. This is causing problems for the company. It is planning to revamp its controlling system and take other steps necessary to rectify the problems it is facing.
Identify the benefits the company will derive from a good control system.
How can the company relate its planning with control in this line of business to ensure that its plans are actually implemented and targets attained.
Give the steps in the control process that the company should follow to remove the problems it is facing.
In all the answers keep in mind the sector of business the company is in.
(a) The benefits the company will derive from a good control system are:
(i) Accomplishment of organisational goals.
(ii) Judging accuracy of standards.
(iii) Making efficient use of resources.
(iv) Improving employee motivation.
(v) Ensuring order and discipline.
(vi) Facilitating coordination in action.
(b) The company can relate its planning with control as Control brings the management cycle back to planning. Control should not be viewed as the last function. In fact, it is connected to planning.
(i) Comparing actual performance with standards.
(ii) Finding out deviations.
(iii) Taking corrective action so that they don't repeat in future.
Control provides the guidelines on the basis of which future planning is done. Thus, controlling not only completes one cycle of management process and also helps to improve planning in the next cycle.
(c) Step taken by company to remove the problem:
(i) The step in the control process that the company should follow to remove the problems it is facing is taking corrective action.
(ii) The company should upgrade the technology used in manufacturing, modify the exixsting process of production and set a lower prices of the mobile phones in order to beat its competitors.