Birger Rapp

On Strategy and Management Control: The Importance of Classifying the Strategy of the Business

The point of departure for this paper is a number of contingency-theory studies on the relationship between business strategy and the design and use of management control. In these studies strategy has been operationalized in different ways – a major reason why the findings are ambiguous and difficult to integrate. Thus there is a strong need for a common frame of reference for classifying business strategy. In view of the multifaceted nature of the concept of strategy, however, it is neither desirable nor possible to arrive at a single method of classification that would be appropriate in all situations. Rather, the task is to integrate different strategic variables such as strategic pattern, strategic position and strategic mission. In this paper we show how these three variables may be assumed to influence, and be influenced by, what characterizes changes in strategy and how business units manage their product offerings. Unlike most previous studies in the field, this paper discusses how the strategic variables taken together may be assumed to influence the classification of strategy and thus the design and use of the management-control system. Our deductive analysis, and the hypotheses used in connection with it, show that studies which consider only one strategic variable may lead to erroneous conclusions about the relationship between strategy and management control.

Implementing business unit strategies: the role of management control systems

This study examines in detail how the toolmakers, Sandvik Bahco have designed and used their management control system to implement their chosen differentiation strategy. Unlike most other studies in this area we have chosen to describe and analyse the control system at the management and the operational levels. The study shows that changes in the learning process at the operational level elicit a need for more, and more comprehensive, information. This means that the borderline between the control systems at the two organisational levels is beginning to dissolve. However, it becomes no less necessary that a control system should be highly adaptable. Rather, it is a question of using a frame of reference that is partially common to the two organisational levels in order to create a meaningful dialogue between them. In this way it is possible to facilitate the choice of strategic orientation as well as its implementation.

Environmentally driven mode of business development: a management control perspective

A prerequisite for successful business development is that the control system is designed and used in such a way that strategically important areas can be planned and followed up. Thus, it must be possible to relate results on the quality front, for example, to the companys strategy, which is why quality systems are often integrated with the overall system of control. Environmental management systems, on the other hand, often tend to lead a life of their own, quite disconnected from the overall control system with its routines for strategic planning and follow-up. This can perhaps explain why environmental work has not become a natural part of corporate business development, despite the market for environmentally friendly products. In this article, we therefore focus particularly on control systems and their role in the promotion of an environmentally driven mode of business development. It appears that the integration of environmental management systems with other control systems has been found to be important. The tentative model presented here indicates the conditions under which such integration is possible. It also shows how a companys approach to environmentally driven business development can fall into various phases. The model includes three dimensions: (1) strategy, (2) control systems, and (3) attitude to environmental work. A number of hypotheses are formulated regarding the importance of these dimensions for the successful promotion of an environmentally driven mode of business development in large companies. The article concludes with some suggestions as to how the model can be used in further research.

Accountability in Local Government : a Principal-Agent Perspective

The purpose of the article is to survey and analyze the chain of accountability to be reviewed by the auditors and through the use of principal-agent (PA) theory to identify the problems that ma ...

Introduction to the Cases: Theories, Concepts and Models

In 2005 the book titled Understanding competitive advantage: The importance of strategic congruence and integrated control, by Fredrik Nilsson and Birger Rapp, was published. In the introduction to the book, the authors (p. 3) present the principal elements of their starting point and their overall contribution as follows:

On Locations of Call Centres

Call centres are a key business form in the modern information society. Call centres, based on e-work, allow flexibility in space concerning organisational locations. The long-term aim of our study is to understand factors behind establishments, locations and continued existence of call centres, and this paper is one step in this process. The paper illustrates call centre locations in two rural regions, Ljusdal in Sweden and Kuusamo in Finland. In the analysis we use a model for call centre location, based on our earlier studies in the field. The model consists of five factors that affect call centre location, or relocation, in a specific region; Business Environment and Community Related Factors, Communications and Organisation Related Considerations, Market Existence and Access, Resource Availability and Entrepreneurship. The paper illustrates how two regions give different prerequisites for call centre location.