Abstract

Amit, Aravind, and Akanshka, started an online digital marketing business AAA Digital Solutions after completing their post-graduate studies. After two years of operations, they found that the company was incurring losses, resulting in a decline in the amount of their capital. Once they started analyzing the facts, they found that not only had there been a decline of their capital in the business because of some transactions, but that they had also ended up spending from their own pockets on the business They were unable to figure out what had actually happened during the past two- year period of their business operations. The present case study can be helpful in understanding the need for a management control system in a business organization and the process and philosophy behind designing and managing controls either in a small or a large scale business organization. The concepts of management control can be discussed in the context of the difficulties faced by Amit, Aravind, and Akanshka in running their business.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• The need for management control systems
• The application of the Cybernetic Approach for Management Control Systems
• The Philosophy of Management By Objectives in Designing and Managing Management Control Systems

Keywords

Control Systems; Management Control ; Management Control Systems; Cybernetic Approach; Management by Objectives; Efficiency of Management Control Systems; Effectiveness of Management Control Systems; Need and Designing of Management Control Systems; Benefits of a Management Control Systems;