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- Cost and productivity control—ensures that the firm functions effectively and efficiently.
- Quality control—contributes to cost control (i.e., fewer defects, less waste), customer
satisfaction (i.e., fewer returns), and greater sales (i.e., repeat customers and new
customers).
- Opportunity recognition--helps managers identify and isolate the source of positive
surprises, such as a new growth inarket. Though opportunities can also be found in
internal comparisons of cost control and productivity across units.
- Manage uncertainty and complexity—keeps the organization focused on its strategy, and
helps managers anticipate and detect negative surprises and respond opportunistically to
positive surprises.
- Decentralized decision making—allows the organization to be more responsive by moving
decision making to those closest to customers and areas of uncertainty.
Kavungya answered the question on May 18, 2019 at 07:50
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