E- Management essays Flashcards
Burritt and Schaltegger 2010
- Sustainability
Data collected and quantifying issues.
Highlight how this can impede effective sustainability reporting.
Complex to quantify some things like Human rights
Beusch et al 2022
- Sustainability
Committed CEOs and strong steer from strategic management can prevent sustainable focus. important to integrate into beliefs system to encourage managers to take on responsibility
Challenges of MA in sustainability (5)
- Short-term vs long-term
- Integration and implementation long time and commitment
- Lack of official standards (inconsistent and cant compare)
- Data collection and quantity
- Focus on internal operations but lots happen outside business
Strategic techniques in MA (5)
- Life-cycle costing (Unilever)
- Investment Appraisal
- Budgeting
- KPIs (BSC)
- Material flow costing accounting for circular economy
Benefits of interorganisational relationships
Reduce costs, Outsource, innovation, Risk sharing, market position, enhance flexibility and competitiveness in dynamic environments
IOR examples
Vertical - Rolls-Royce
Horizontal - Quantas & Emirates
Diagonal - Starbucks & Barnes and Noble
Fail - Volkswagen and Suzuki (2009-2011)
Drivers behind IOR (4)
Exploit Unique resources
Achieve specific outcomes
Globalisation
Technical complexity of new products (expertise)
Outsourcing can be cheaper
Outcome/results controls IOR
Use of integrated info systems,
Target costing
Inter-organisational cost management
Rank-basked rewards
Value chain analysis
Open-book accounting
Perceived performance risk in an IOR will be reduced more effectively by Output control than behaviour (Das and Teng 2001)
Why open book accounting for IOR
Reduce information asymmetry
Collaborative efforts create additional opportunities for cost reductions
BUT required high degree of cooperation and trust
Behaviour/Action controls
How parties should act and if these specifications have been followed
Policy docs, procedures, structures for regulating employment and training
Frequent meetings to discuss guidlines and joint projects
Focus on communication
Perceived relational risk will be reduced more effectively behaviour than output control
Social.Cultural Controls
values, norms, and culture that influence behaviour of people in companies
Cross-organisational teams are governed by social controls
Selection of partner - “matching” controls
Reduce both perceived relational and perceived risk
Trust, Risk, Control
High levels of trust can mitigate risks and reduce the need for stringent control mechanisms.
Effective control can enhance trust by providing assurances and safeguards but excessive control erodes trust and stifles collaboration.
How does MCS adapt for IOR
Incorporate overlapping responsibilities, Target Costing, Working Capital management, Performance measures, and cost management
Joint development with key partners is essential
Kraus and Lind (2007)
Importance of recognising unique dynamics of IOR when designing MCS. Advocate for balanced approach considering level of trust, nature of relationship and strategic objectives.
Risk IOR
Relational - Probability and consequences of not having satisfactory cooperation. Opportunistic behaviour, conflicts
Performance - Alliance objectives not achieved
