Case Study on Organizational Control

I.M. Tycoon will have to start by using organizational control. This will give him the information he needs to make the specific management, department, unit, or operation changes according to cliff notes. The specific controls I.M. Tycoon will have to focus on are financial control, budgetary control, and market control. Financial control involves using balance sheets and profit and loss statement. Budget control is “ finding out what’s being done and comparing the results with the corresponding budget date to verify accomplishments or remedy differences” (Bateman & Snell, 2008). Budgetary control is also called budgeting. Marketing control “helps maintain low prices” (Bateman & Snell, 2008).

While looking at I.M. Tycoon’s company, his particular organization is using a more centralized approach. I.M. is the president and has the overall say if something is going to be implemented. Delux Tools has a new product in the Robo Tool and I.M. Tycoon needs to look at this product as well as the cost to get this product started and if there is a market for the new item. This involves marketing and budget controls. I.M.Tycoon will need to look at the money, people, and the cost needed to advertise the Robo Tool, as well as, if he can make a profit from Robo Tool.

I.M. Tycoon will now need to look at his brother’s company, Sale-Buy Insurance Company. Harold purchased other agencies and they were doing good but prior to his death they were not profiting as much as they had two years ago. Sale-Buy Insurance has a more decentralization approach. This is when “more decisions are made at lower levels” (Bateman and Snell, 2008). Harold relies on the managers of the agencies to run and make decisions independent of him; Harold just takes a portion of the proceeds. This approach was working but the last couple of years this has not worked so well. I.M. Tycoon now needs to look at the different controls and see when he can turn the company around to make a profit...