Control Mechanisms Essay

1614 Words Jan 27th, 2009 7 Pages
Control Mechanisms Control mechanisms are necessary in order for any business to run smoothly and ensure that things are going as planned. These controls help the business determine the activity and direction of its employees in a manner that helps the company meet its goals (Bateman & Snell, 2007). There are three basic types of controls: bureaucratic, market, and clan. Bureaucratic control basically consists of the formal rules and regulations that establish authority, set standards, and regulate behaviors (Bateman & Snell). Market control regulates activities by examining the competition, analyzing profit and loss, and utilizing economic information (Bateman & Snell). Clan control differs from the previous two controls in that …show more content…
(Bateman and Snell, 2007). By taking that into consideration, a proposal was put together that works for that particular country. Coco-Cola also used the market control mechanism by analyzing the profit and loss reports. Using the control mechanism has proved to be very profitable for Coco-Cola and it has become very popular beverage companies. Coco-Cola also follows Clan control mechanism when it comes to diversifying Coco-Cola products. They have a specialized group that thinks of different kinds of products. This creative group has to perform market analysis by examining the competition to know the taste of consumers. By using the control mechanisms, Coco-Cola has managed to capture a large audience. Bureaucratic and Market control is a continuous process and Coco-Cola has effectively used these mechanism to survive the game of the fittest by quenching the thirst of people around the globe.
Coca-Cola is a well defined organization that uses all three types of controls. There are positives and negatives associated with each control: Bureaucratic Control takes place before the operation takes effect. It includes rules, regulations and procedures that must be followed through and monitored; this then gives control the performance data that has been gathered. The negative to this type of control is that employees are not mechanical

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