Global 7-Eleven Management Control
Control. In management control is a critical fuction. Management control problem can lead to large loses and possibly even to organizational failure. (Kenneth and Van Der Stede, 2004). Why controlling became the crucial thing on an organization or company? it because controlling handle the process of monitoring, comparing, and correcting work performance. (Robbins and Coulter, 2009). So, what the impact to the company or organization if you had bad controlling department or bad controling managers? There is many thing can causes by bad control, such as bad final product that impact to the selling growth of companies or organizations. Can said, controlling are the final step on management process. Aside from that, controlling are important for managers to help manager know wether goals are being met and it provides information and feedback so managers feel empowring employees and helps protect an organization and its assets. (Robbins and Coulter, 2009) Good control or good management control means that mangement can be reasonably confident that no major unpleasant surprise will occur. (Kenneth and Van Der Stede, 2004). Managers have to do controling step by step, there many control system that offering but there is one commonly used by managers, called cybernetic control system (Schermerhorn, 1996), these system has four steps on controling , the first step is established objectives and standards, then measure actual performance, after measuring manager compare the result with objectives and standards that have been made by mangers, and finally take necessary action (Schermerhorn,1996).
7-eleven, the world largest chain convinience retailling industry, founded on Dallas, Texas 1927. Based in Dallas, Texas, the company operates, franchises and licenses more than 7,100 stores in the U.S. and Canada. Of the 6,000 stores the company operates and franchises in the United States, close to 4,800 are franchised. 7-Eleven licensees and affiliates operate approximately 31,400 7-Eleven and other convenience stores in countries including Japan, Taiwan, Thailand, South Korea, China, Hong Kong, Malaysia, Mexico, Singapore, Australia, Philippines, Indonesia (under PT. Modern International), Norway, Sweden and Denmark (corp.7-eleven.com/AboutUs).
With huge numbers of store that open around the world, a big company like 7-eleven have to control everything that happened on the company. From the product quality control to the management control. Everything have to run on the right track, or the company will lose their customer.
To keep maintaining and controlling all 7-eleven store and make sure all store are running on the right way, management of 7-eleven on the mid-1989 decided to use cmputers programs to forecast and proposed store’s sale for the first five years. A store that does not measure up to standards id often to closed. Jon Thompson, son of the founder and now the chairman, says that whe the store look like losers, “we would rather close them and take our licks” (1989). Jon Thompson purpose to take that decision is to keep the market or customers satisfy and to push down the cost so company gain higher profit. This decission are right, because this decision are apropriate to the definition of controlling, a process of monitoring performance and taking action to ensure desired result (Schermerhorn,1996).
On that age, 7-eleven becoming the leader in computerization of store operation. There is so many benefit that 7-eleven got with using computerized store operation, it help the distribution center to keep watching on customer need, so it helps distribution center to know what kind of product that market need on specific 7-eleven store area. Careful analysis is made of which items sell best in which store and see the trend of market. When the trend are change, 7-eleven can change the product that they are sell, they can replace...
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