Operational Control: Marketing and Production

Abstract

This chapter covers the application of the control philosophies and system designs described previously in two functional areas of the firm: marketing and production. The emphasis is on country differences and similarities with respect to the degree of formalism in control systems and to the ‘tightness’ of the control process: what standards are set and by whom; how performance is measured, at what frequency and by whom; what is reported and who evaluates performance. Marketing and production, selected as the two main operational areas of the firm, were found to be differentially emphasised by chief executives and controllers. Therefore, in order to deepen and sharpen our understanding of management control we analyse how line managers in both areas envision the monitoring of performance. Finally, we compare the marketing and production viewpoints in order to assess the differences between these two areas with respect to the use of control.