What is focus of control in headquarter level control strategy?
Answers
Answer:
The strategy that is made by the parent firm is known as the headquarter level strategy.There are many barriers towards head quarter level control which include :-
Challenges of cross culture
Challenges from the subsidiary
Challenges from the headquarter Head Quarter Level Strategy
Diversification Strategy– Sometimes the organizations continue with the business they are into without any changes, such type of strategy is known as concentration strategy or strategy of single market but, sometimes due to unavoidable situations or the external pressure the organizations try to make some changes in their product or services , such type of strategy is known as diversification strategy.
The eight synergy killers of the headquarter level strategy
Inhibiting the corporate level strategy
Clashes between the staff of the company eg. Personality clashes or cultural clashes
Creating a sense of secrecy within the organizationWhat you’ll learn to do: describe the different levels and types of control
In management, there are varying levels of control: strategic (highest level), operational (mid-level), and tactical (low level). Imagine the president of a company decides to build a new company headquarters. He enlists the help of the company’s officers to decide on the location, style of architecture, size, etc. (strategic control). The project manager helps develop the project schedule and budget (operational control). The general contractor directs workers, orders materials and equipment for delivery, and establishes rules to ensure site safety (tactical control).
Control can be objective or normative. Objective control involves elements of the company that can be objectively measured, such as call volume, profitability, and inventory efficiency. Normative control means employees learn the values and beliefs of a company and know what’s right from observing other employees.
LEARNING OUTCOMES
Differentiate between strategic, operational, and tactical controls.
Differentiate between top-down, objective, and normative control.
Strategic Control
Managers want to know if the company is headed in the right direction and if current company trends and changes are keeping them on that right path. To answer this question requires the implementation of strategic control. Strategic control involves monitoring a strategy as it is being implemented, evaluating deviations, and making necessary adjustments.
Four pieces on a chessboardStrategic control may involve the reassessment of a strategy due to an immediate, unforeseen event. For example, if a company’s main product is becoming obsolete, the company must immediately reassess its strategy.
Implementing a strategy often involves a series of activities that occur over a period. Managers can effectively monitor the progress of a strategy at various milestones, or intervals, during the period. During this time, managers may be provided information that helps them determine whether the overall strategy is unfolding as planned