Management Control System at a Publicly Listed Company Assignment

Management Control System at a Publicly Listed Company - Assignment Example So the objective of the study would be to assess the management control system of Vodafone. It is also important to assess the strategic management model to interpret the winning formula of Vodafone not only as a company but also as a brand name. A company is a place where a group of employees work together for common goals and to receive compensation in return for the service that they are providing to the company. The company is run by a group of top level managers and they divide the departments, units and groups under them to carry out the decisions and objectives that they plan for the company. The process of management control simply ensures that the strategies implemented and the goals set by the top management of the company is moving in the right direction and the human resource of the company are perfectly allocated for performing these activities are carefully carrying out their task (Anthony and Govindarajan 51-53).   The management control system involves communication of guidelines, decisions and the objectives of the company or the organization. Similarly strategic management planning also involves communicating similar functionalities as management control. But in a much similar way, strategic planning is a part of the management control process. Strategic planning is basically applied economics but management control is applied psychology. Both of these functions involve the top level management. It is a very important strategy that is often followed in companies practicing decentralized model. It is a well known fact that in order to survive in the global market, the company should possess competitive advantage over its competitors. Competitive advantage of the company involves two vital issues such as the cost structure and special features of the firm to differentiate with its competitors. Companies always try to increase their value chain in order to have an edge over

Public Policy Analysis Essay Example | Topics and Well Written Essays - 2500 words - 1

Public Policy Analysis - Essay Example It imposes penalties for violation of security laws at higher rates than were applicable earlier. It also increases resources for the Securities and Exchange Commission. The Act is applicable to all the companies whether American or foreign if they are required to file annual and periodical reports with the SEC. This public policy analysis is to have a better appreciation of regulatory relationship between government and corporation (Zameeruddin, 2003). (Lovik, Merkel, & Bowser, 2006) The enactment of the legislation is timely in order to protect the interests of the investor from corporate fraud and to require corporate executives to enhance corporate ethical standards. These are with a view to make the US securities market robust enough to be a safe place for investors to invest and do business. It is argued that SOX is an essential policy tool to realize these objectives. The Act comes into force to address the market failure as a result of scandals such as Enron and others. The Enron scandal alone justifies the legislation to address the market failure characterized by the following consequences. Bankruptcy: 20,000 employees were rendered jobless and deprived of health insurance. Average severance pay was $ 4,500 and top management executives were paid bonuses exceeding $ 55 million. Employees’ retirement funds of $ 1.2 billion were lost. Retirees did not get their $ 2 billion retirement funds. Company’s top executives en-cashed their stocks wor th $ 116 million. Criminal Charges: There were 15 guilty pleas, 6 convictions, 1 acquittal and 11 cases not decided. Three California based stock traders entered their guilty plea for wire fraud. 4 Meryll Lynch executives confessed to fraud in the Nigerian Barge case. Enron’s stock hit a high of $ 90 in 2000 and fell to $ 1 in 2001. 29,000 employees of auditing firm of Arthur Anderson lost their jobs. And Enron’s shareholders sued the company and their banks for $ 20 billion (Jesso, 2009). SOX