BA 510: Management Control Systems

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BA 510 Management Control Systems

• EMBA Singapore
• March/April, 2008

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BA 510 Day 1 Agenda

• 630-745
• Introductions
• Website Review
• 800-915
• Collect Data
• Classroom Approach
• Chapter 1 Discussion
• 930-1030
• Nucor Case

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BA 510 Introductions

• You
• Name, Occupation, Family
• Accounting background
• How do you spend your leisure time?
• Your 10 year dream?
• Me
• Family
• Nuclear
• Wife
• Grands
• Background
• Hobbies
• SIUC
• Back to Agenda

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BA 510 Collect Data

• Name
• Group members
• Email address
• Phone number
• Password for posting grades on web
• Back to Agenda

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BA 510 Classroom Approach

• Time 75 minutes, 15 minute break
• Socratic approach
• Importance of classroom participation
• Back to Agenda

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BA 510 The Nature of Management Control Systems

• What are the elements of MCS?
• Which came first, the strategy formulation or the
  management control system?
• Why is this important to managerial accountants
  (Can accountants have a role, then, in strategy
  FORMULATION?)
• Review Exhibit 1-5 (What is the accountants role
  in each?)

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BA 510 The Nature of Management Control Systems

• What are the elements of a control system?
• Detector
• Assessor (Are positive variances good? Are
  negative variances bad?)
• Effector
• Communications Network
• What should be the goal of every profession?
• Introductory Presentation (slides 1-7)

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BA 510 The Nature of Management Control Systems

• Roadmap for the course (Exhibit 3.1)
• Review of text
• The control environment (chapters 1-7)
• The control process (chapters 8-12)
• Variations (chapters 13-15)
• Back to Agenda

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BA 510 Elements of Management Control Systems

• Strategic Planning
• Responsibility Centers Responsibility Center
  Allocation
• Transfer Pricing
• Resource Allocation
• Budgeting
• Performance Measurement and Evaluation
• Reward
• Return to previous slide

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BA 510 Nucor

• Why has Nucor performed so well?
• What are the most important aspects of Nucors
  organization and control that have contributed to
  its success?
• Do the organization and control fit its strategy?

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BA 510 Nucor

• A recurring theme of success is Nucors
  management of its knowledge in 2 areas 1) plant
  construction start-up, and 2) manufacturing.
  How does Nucor manage its knowledge in these 2
  areas so effectively?
• How does Nucors organization and control
  contribute to its first-mover advantage in
  technology advancement?

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BA 510 Nucor

• Why have competitors had a difficult time
  emulating Nucor?
• Would you like to work for Nucor?
• Is Nucor a
• People problem?
• Process problem?
• Organizational structure problem?
• MCS problem?
• Back to Agenda