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Unit 2: Strategic Management Framework

Hence, to run the management control system successfully, it is imperative that an effective Notes
information system should be in operation i.e., it should have the following essential requisites:
1. Designing of the system is to be carried out after considering the information requirements
of the different levels of management.
2. Information system should maintain a database to store all types of information required
for making a variety of decisions. It should be capable of meeting routine and special
information requirements of the organization’s executives.
3. The system should have enough flexibility to meet the changing information requirements
of its executives.
4. Information system should be properly designed and managed by the professionally
trained persons.
5. Information system should be supported by an effective reporting system, which should
be timely, accurate, economical and in proper format. It should be periodically reviewed.

Task Management control begins with corporate planning. Do you agree? State your
views.

Self Assessment

Fill in the blanks:
9. A ……………….implements the organization’s goals and strategies.
10. The ……………..responsibility for such system is to ensure that system throughout the
organization is efficient and compatible with one another.



Case Study Rockford Company

he Rockford Company founded in 1942, is in the business of laying wall-to-wall
carpeting. The company was the brainchild of three persons, who became partners
Tin the company. The company’s innovation lay in changing the method of laying
carpets, it broke the traditional practice of tacking carpets down. This idea was a great
success, and in no time Rockford became the world leader in producing the tools for
laying and stretching carpeting.
Rockford developed and marketed a special adhesive for carpet laying. In course of time,
the product line was expanded to the production of adhesive for plastic, materials to be
fixed in kitchens, bathrooms, on furniture and elsewhere. The company also expanded its
operations by introducing special products such as steel folding doors for closets and
wardrobes, steel door frames, and other items. The company went global and penetrated
several foreign markets.

All the products were developed in US and were marketed in other countries. At this
point, Rockford decided to move to a strategy of designing new products and making
corporate acquisitions. Before embarking on the strategy, the company took stock of its
position:
Contd...

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