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 utilized to structure information and support decision-making within the context of the INTOP business game, specifically focusing on the radio industry. The paper uses established controlling frameworks to analyze strategic and operational challenges.
- Application of strategic controlling instruments in the INTOP radio industry.
- Analysis of the radio industry structure using Porter's Five Forces.
- Evaluation of strategic alternatives based on Porter's generic strategies.
- Operationalization of cost leadership using the Balanced Scorecard.
- Application of operative controlling instruments for product policy and sales organization planning.
Zusammenfassung der Kapitel (Chapter Summaries)
1. Introduction: This introductory chapter establishes the context of the paper, highlighting the complexities of entrepreneurial decision-making within the INTOP business game. It introduces the concept of management control as a systematic comparison of performance against predetermined standards, plans, and objectives, laying the groundwork for the subsequent analysis of strategic and operative controlling instruments within the INTOP radio industry. The chapter outlines the paper's structure, clearly defining the scope and approach to analyzing strategic and operational aspects of controlling.
2. Application of strategic controlling instruments in the radio industry: This chapter delves into the strategic dimension of controlling within the INTOP radio industry. It begins by analyzing the industry's structure using Porter's Five Forces, identifying key competitive pressures and opportunities. This analysis then informs a discussion of strategic alternatives based on Porter's generic strategies, exploring the potential of cost leadership, differentiation, and focus. Finally, the chapter provides an example of operationalizing the cost leadership strategy through the application of Kaplan and Norton's Balanced Scorecard, demonstrating how strategic objectives can be translated into concrete actions and performance measures.
3. Application of operative controlling instruments in the radio industry: This chapter focuses on the operative aspects of controlling, shifting the analysis from strategic planning to day-to-day management. It showcases the use of a multiple-stage margin accounting system to improve decision-making concerning product policy, emphasizing how detailed cost analysis can optimize pricing and profitability. Furthermore, it demonstrates the application of break-even analysis in determining the optimal timing for implementing a regional sales organization, highlighting the importance of considering fixed and variable costs in expansion strategies. The chapter connects these operative tools to the strategic considerations explored in the previous chapter, demonstrating the synergistic relationship between long-term strategic goals and short-term operational efficiency.
Schlüsselwörter (Keywords)
INTOP business game, strategic controlling, operative controlling, Porter's Five Forces, Porter's generic strategies, Balanced Scorecard, multiple-stage margin accounting, break-even analysis, cost leadership, radio industry, product policy, sales organization planning, decision-making.
INTOP Business Game: A Comprehensive Language Preview - FAQ
What is this document?
This document is a comprehensive preview of a paper analyzing the application of strategic and operative controlling instruments within the context of the INTOP business game, specifically focusing on the radio industry. It includes a table of contents, objectives and key themes, chapter summaries, and keywords.
What are the main objectives of the paper?
The paper aims to demonstrate how strategic and operative controlling instruments can be utilized to structure information and support decision-making in the INTOP radio industry. It focuses on applying established controlling frameworks to analyze strategic and operational challenges.
What strategic controlling instruments are discussed?
The paper discusses the application of Porter's Five Forces for industry structure analysis, Porter's generic strategies for evaluating strategic alternatives, and the Balanced Scorecard for operationalizing the cost leadership strategy.
What operative controlling instruments are discussed?
The paper examines the use of a multiple-stage margin accounting system for improving product policy decisions and break-even analysis for planning a regional sales organization.
What is the structure of the paper?
The paper is structured into four chapters: an introduction, a chapter on strategic controlling instruments in the radio industry, a chapter on operative controlling instruments, and a conclusion. Each chapter is summarized in the preview.
Which specific industries are analyzed?
The analysis primarily focuses on the radio industry within the simulated environment of the INTOP business game.
What are the key themes explored in the paper?
Key themes include the application of strategic and operative controlling instruments, industry structure analysis, strategic alternative evaluation, operationalization of cost leadership, product policy, and sales organization planning.
What frameworks are used in the analysis?
The paper utilizes established frameworks such as Porter's Five Forces, Porter's generic strategies, the Balanced Scorecard, multiple-stage margin accounting, and break-even analysis.
What are the key takeaways from the chapter summaries?
The introduction sets the context. Chapter 2 analyzes the radio industry's strategic landscape using Porter's frameworks. Chapter 3 delves into operative controlling tools for optimizing product policy and sales organization. The conclusion (not detailed in the preview) presumably synthesizes the findings.
What are the keywords associated with this paper?
Keywords include INTOP business game, strategic controlling, operative controlling, Porter's Five Forces, Porter's generic strategies, Balanced Scorecard, multiple-stage margin accounting, break-even analysis, cost leadership, radio industry, product policy, sales organization planning, and decision-making.
- Arbeit zitieren
- Marvin Mertens (Autor:in), 2013, Controlling instruments in the "INTOP" business game, München, GRIN Verlag, https://www.grin.com/document/273721
