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Wax Company

The wax company having many subsidiaries in Ireland as an administration headquarters, Europe as marketing headquarter, and Australia as a logistic headquarter, should have a necessity proper management control systems which should be employed for proper operation of the company as a whole.

One of the most applicable management control system applicable in Ireland is the use of the recent managerial accounting technological advances like: Just In Turn (JIT) associated with informal control measures for all subsidiaries; Total Quality Management (TQM) with broad based Management Control System for all subsidiaries; and the Flexible Manufacturing (FM) with integrative measures for the company subsidiaries,(Chenhall, 2003, pg 131)

Australia being the logistic headquarter should have a management control system that measures the defined entities, evaluate the measures in logistics, and also design the process in which to obtain the measures. This should involve the use of standard cost method which relates the amount of production in relation to the number of employed workers in the company, and the statistical process control method that uses the moving averages to determine the production per period per worker in the whole company. This will solve the complexity of dealing with the company employees in all branches,(Roehm, 2000, pg 37)

As the marketing headquarter, the subsidiary in Europe should implement the transaction cost strategy which identifies the types of organizational structures to be taken into keen interest when dealing with marketing strategies of the company. This identifies the types of markets, the hybrids, and the hierarchies that are essential in the management control system of the company. This method explains that markets are better placed in low transaction in asset specificity while the hierarchies are essential in reducing the conflict in the determination of the market entities within the company’s’ competitive reach s(Spekle, 2001, pg 421).

References

Chenhall, R. H. 2003. ‘Management control system design within its organizational context: Findings from contingency-based research and directions for the future. ’ Accounting, Organizations and Society. vol. 28,no. 2-3, pp. 127-168. Roehm, H. , Weinstein. L, & Castellano. J. 2000. ‘Management control systems: How SPC enhances budgeting and standard costing. ’ Management Accounting Quarterly: Pg. 34-40. Spekle, R. F. 2001. ‘Explaining management control structure variety: A transaction cost economics perspective. ’ Accounting, Organizations and Society. Vol. 26 no. 4-5, pp. 419-44.

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