Hans B. Thorelli, Robert L. Graves and Lloyd T. Howells, the initial developers of INTOP, put strong emphasis on the “ubiquity of entrepreneurial opportunities and decision situations” that INTOP participants have to cope with. Against this complex background, this paper aims at showing how strategic and operative controlling instruments can be used to structure information and thus to provide support in both strategic and operative decision situations.
The underlying understanding of controlling in this paper is based on Robert J. Mockler’s concept of management control as “a systematic effort by business management to compare performance to predetermined standards, plans or objectives (…)”. According to Mockler, controlling begins with a firm’s plans and expectations, which shape its objectives and standards. These objectives and standards are considered as preconditions for performance measurement.
Given its aim, this paper is split into two parts. Chapter two deals with the strategic dimension of controlling. In 2.1, the structure of the radio industry is analysed using Porter’s five forces. In 2.2, the results of this analysis are used to discuss an INTOP company’s strategic alternatives, following the three generic strategies developed by Porter. 2.3 includes an exemplary operationalization of the strategy of cost leadership using Kaplan and Norton’s Balanced Scorecard. In chapter three, controlling is seen from its operative perspective. In 3.1, it is shown how a multiple-stage margin accounting system can be used to improve decisions concerning product policy. In 3.2, a break-even analysis is used to determine the right timing for the implementation of a regional sales organisation.
In order to provide an in-depth analysis of a specific industry, this paper solely deals with the INTOP radio industry. However, the instruments applied can also be used by firms that are engaged in the vacuum cleaner industry. Since more than one strategy can lay the foundations for success in INTOP, this paper shall not dictate one particular strategy that automatically leads to success. Instead, it provides an overview of alternative strategic approaches each of which can make, if implemented appropriately, INTOP participants succeed. The selection of instruments applied in this paper is not exhaustive. The instruments that are presented were selected because they can be used to handle problems that are of high importance in the specific context of INTOP.
Inhaltsverzeichnis (Table of Contents)
- 1. Introduction
- 2. Application of strategic controlling instruments in the radio industry
- 2.1 Structural analysis of the radio industry using Porter's Five Forces
- 2.2 Discussion of possible strategies using Porter's generic strategies
- 2.3 Operationalization of the strategy of cost leadership using Kaplan and Norton's Balanced Scorecard
- 3. Application of operative controlling instruments in the radio industry
- 3.1 Steering of the product policy using a multiple-stage margin accounting system
- 3.2 Planning of a regional sales organisation using a break-even analysis
- 4. Conclusion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper aims to demonstrate how strategic and operative controlling instruments can be used to structure information and provide support in both strategic and operative decision-making situations within the context of the INTOP business game. It specifically focuses on the radio industry and explores how controlling techniques can be applied in this specific sector. The paper does not dictate one particular strategy for success but rather provides an overview of alternative approaches.
- Strategic controlling instruments in the radio industry
- Operative controlling instruments in the radio industry
- Application of Porter's Five Forces and generic strategies
- Operationalization of cost leadership using the Balanced Scorecard
- Multiple-stage margin accounting system and break-even analysis
Zusammenfassung der Kapitel (Chapter Summaries)
Chapter one provides an introduction to the paper, highlighting the importance of controlling instruments in the INTOP business game. The author introduces the concept of management control and its role in shaping objectives and standards for performance measurement.
Chapter two focuses on the strategic dimension of controlling. It begins by analyzing the structure of the radio industry using Porter's Five Forces, then explores possible strategic alternatives based on Porter's generic strategies. The chapter concludes with an example of how the strategy of cost leadership can be operationalized using Kaplan and Norton's Balanced Scorecard.
Chapter three shifts to the operative perspective of controlling. It demonstrates how a multiple-stage margin accounting system can be utilized to improve decision-making regarding product policy. Additionally, it outlines the use of break-even analysis to determine the optimal timing for implementing a regional sales organization.
Schlüsselwörter (Keywords)
The key terms and concepts explored in this paper include strategic and operative controlling, the radio industry, Porter's Five Forces, Porter's generic strategies, the Balanced Scorecard, multiple-stage margin accounting system, break-even analysis, and the INTOP business game. These themes collectively represent the primary focus and theoretical underpinnings of the work.
- Quote paper
- Marvin Mertens (Author), 2013, Controlling instruments in the "INTOP" business game, Munich, GRIN Verlag, https://www.grin.com/document/273721
