The Coffee Pot

461 Words2 Pages
What are the Key Control Problems in The Coffee Pot Case Study? There are a lot of issues faced by the coffee pot. First senior managers have not communicated the core values of the business in a way that people understand and embrace. Brooke’s new strategy has not been communicated to the shop managers effectively. She comes up with a solution to reduce costs and implements the coffee makers, without giving direction to the staff on the purpose to the sudden change. Without sharing her vision for the company, employees can lose direction and motivation to achieve the company goal. After implementing the new strategy Brooke only works part time, and the lack of supervision of the new project leads to a loss. The control of the new strategy is a continuous process which needs to be embedded in each level of the company with a focused look into the future. This closely related to her planning and once the new coffee makers were installed further supervision was need to check whether the machines were managed properly and used effectively to achieve the set goals. No set goals are outlined for the shop mangers to meet. There is a lack of efficient accounting standards which could have highlighted the issues the company is now facing. An external auditor is needed to monitor whether the sufficient information is given. This is illustrated in the overpayment of rental properties. Though decentralizing decision making to shop mangers has some advantages especially towards their motivation in this case the disadvantages outweigh the advantages. A manager not consulting senior management on decisions regarding increasing shop space shows that shop mangers attention has shifted from the company and focused on the shop as a subunit. The lack of supervision of shop managers and setting ground rules has led to increased costs. Senior managers in the organisation have not
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