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Management Structure and Business Cost Controls

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Besides sales and expenses, identify five other important control measures for a business. Include at least one non-financial measure.

Suppose a company at which executives were rewarded for meeting targets based only on profits and stock price switches to a balanced scorecard that adds measures for customer satisfaction, employee engagement, employee diversity, and ethical conduct. How, if at all, would you expect executives' performance to change in response to the new control system? How, if at all, would you expect the company's performance to change?

Why would a company chose to follow rather than lead technological innovations? Is the potential advantage of technological leadership greater when innovations are occurring rapidly, or is it better in this case to follow?

If you were in the grocery business, whom would you benchmark for the technological innovations? Would the companies be inside or outside your industry? Why?

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Solution Summary

An examination of the management structure and establishing cost controls.

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