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Question
A company 'M' limited is manufacturing mobile phones both for domestic Indian market as well as (or 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!;!ly 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.
Options
With effective controlling the deficiencies in the system can be identified and accordingly corrective action can be taken. This would help in moving in the right direction as per the set objectives.
A controlling system would help in judging the accuracy of the standards adopted by the management. It would enable the manager to review and revise the standards according to the changing business environment.
A continuous control and monitoring helps in the efficient and optimum utilisation of resources. As each work is done according to the set standard, there is less wastage and spoilage of resources.
All of the above
Solution
All of the above
Explanation -
The following are the advantages that a good control system would bring to the company.
- The faults in the system can be discovered and addressed with good control. Corrective action is possible. As a result, Assist in traveling in the appropriate direction according to the predetermined goals.
- A judging mechanism would be beneficial the precision with which the standards adopted by the management. It would give the manager more options to amend and update the standards in accordance with to the shifting business landscape.
- Continuous monitoring and control aid in the effective and optimal use of resources. There is minimal wasting and spoilage of resources because each task is completed according to the established standard.
- Employees are informed in advance of what is expected of them and the criteria by which their performance will be measured. This encourages them to work harder to meet their objectives.
