MANAGERS

Planning Organizing

Leading Controlling

Strategic Tactical Operational

Strategy Formulation

Management Controls

Task Control

Detector Assessor Effector Communication Network

Strategy Formulation

External EnvironmentInternal

Environment

General Task

PoliticalEconomical

SocialTechnologicalEnvironmental

Legal

SuppliersCustomers

CompetitorsLabour Market

Corporate culture Product

technology Organization

structure Physical facilities

Corporate Level

Strategies

• Single Industry• Related

Diversified• Unrelated

Diversified

Business Unit Strategies

• BCG Matrix• GE Planning

Model• Porter’s Five

Forces• Porter’s

Competitive Advantage

• Value Chain Analysis

GOAL CONGRUENCE

External Factors

Internal Factors

Culture

Hofstede’s Cultural

Dimensions

Functional

Business Unit

Matrix

Management Control Systems

Controller

Responsibility Centers

Expense Center

Revenue Center

Profit Center

Investment Center

Measure Input Measure Output Measure Input and Output

Measure output and investment

Effectiveness Efficiency

Objective / Output Output / Input

Discretionary Expense Center

Engineered Expense Center

General ControlsBudget PreparationIncremental BudgetingZero based reviewCost variabilityFinancial ControlPerformance Measurement

Risks

Types of Risks

Hazard Risk Control Risk Opportunity Risk

Negative Outcome Negative or positivePositive outcome

7R risk management process

Ranking of Risks

Classifying Risks

Responding to risks

Risk Management

Principles

Risk Maturity

ImpactVs.

Likelihood

FIRMPESTEL

IRMBS 31100

etc

4Ts4Es4As

ProportionateAligned

ComprehensiveEmbeddedDynamic

NaïveNovice

NormalizedNatural

Risk Exposure

Risk Appetite

Risk Capacity

Risk Averse

Risk Aggressive