Management control represents organisational effort to set objectives and design adequate monitoring mechanisms to be able to constantly compare actual performance of systems to the set objectives or standards. In situations where deviations are recorded, adequate mechanisms are put in place to measure the level of the deviations and also take corrective actions.
There are three different types of controls that an organisation can employ in its strategic management efforts. They include Feedforward, Concurrent and Feedback Controls. Controls are meaure taken by organisations focusing on
The feedforward control concentrates on input regulation to ensure that predetermined objectives and performance standards are achieved with little or no deviations. Feedforward system is also called a preventive, steering and a predictive system. It ensures that resources such as finance, human and capital resources are adequately regulated.
The feedback system waits for the output of processes to find out if there were deviations in the performance standard set or not. If there were deviations, then controls are put in place to ensure that the next batch of production meet standard.
Concurrent Control on the other hand, is a control system that seeks to ensure that adequate output and performance standard is maintained by regulating ongoing processes to ensure conformity to standard. It is also called the screening or yes-no control. It also requires a close monitoring of the tasks and activities on-going and making relevant queries to stop deviations or minimize deviations
Contours, Inc already knows that the limit of the drill bit is 100,000 holes and if allowed to reach this limit, the out in form of hole sizes will deviate from the standard, it will be smaller than the expected specification. Contours is therefore ensuring that the drill does not get to its limit by changing the bit at 95,000 uses to ensure that standards are met and deviations are avoided.
This is the concurrent control, the yes-no query is this:
Are we at 95,000 drills? If yes, change the drill, if no, continue the drilling
Of course, it will cost Contours more financial obligation because, the drill can still make about 5,000 holes before it deviates but it is a chance the organisation is not ready to take.
Multitasking means doing two task at the same time without disturbing any of the two task. Combining tasking means doing the task by combining means like...both of them are processing one after one for a little bit of time...
The Budgeting Process Starts with determining the Number of Units that need to be sold.Then the Production Budget is prepared to determine the number of units which need to produced to meet the sales.Within the production Budget we can establish the amount of Purchases the firm need to make to satisfyproduction.A Cash Budget is then prepared to establish Balances of cash from inflows (sales budget) and outflows (purchases budget). then Lastly the Income Statement.
Both options are incorrect, since the Heckscher-Ohlin (H-O) model assumes that countries will trade goods that are intensive in its relatively abundant factors, but it the world price is below the domestic price then the trade doesn't make sense. This model explains why the costs of factors of production will tend to be similar between countries that engage in trade.
The second option makes even less sense since the countries should export goods that are produced at a relatively low opportunity cost.
According to the Heckscher-Ohlin (H-O) model, countries differ in the relative abundance of factors of production, and their exports are going to be based on those abundant factors. But it makes the mistake of assuming that technology is similar and available in all countries. The (H-O) model is also based on the study of just two factors of production, and the factors of production are four (land, labor, capital and entrepreneurship), and they can all be traded or changed from one country to another. For example, the founders of Google, Amazon, Tesla, and others are all immigrants that came to the US and they were all entrepreneurs. The (H-O) model also states that no country can have abundance of all the factors of production, but the US is unique in the sense that all the factors of production are abundant here.