Evaluation of Management Control System in Brewery Companies: The Case of Harar Brewery Share Company
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Date
2018-03
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Addis Ababa University
Abstract
In today’s brewery industry, customers are demanding more and more on timely deliveries, zero
defects and short-lead times which are becoming the norm in almost all industries. Furthermore,
the business market environment has become competitive; markets are becoming more
international, dynamic and customer driven. This research paper evaluates Harar brewery SC
on the selected elements of management control system specifically, strategy planning,
performance measurement and evaluation, incentives, reward and motivations. The researcher
used a qualitative type case-based descriptive study that aims to evaluate the management
control system. Hence, in order to achieve the main and specific research objectives, survey
questionnaire and interviews have used as the main data collection techniques and tools. The
main findings and recommendation of the study were that the strategic planning practice being
used by Harar brewery SC is in line with the theoretical propositions derived from the literature
and its business level strategy has been changing due to deliberate or emergent change in the
internal and external environment. The practice of performance measuring process for both
entity and individual level, Harar brewery SC has been extensively using the one that relate to
financial performance. For measuring individual’s performance, Harar brewery SC is using
various criteria and performance indicators in measuring its employee performance. Since both
customer requirements and the business environment are constantly changing management of
the company has to assess how successful they are at meeting the customers' needs, as well as
how successful the competitors are. This will also help the company to identify new market. The
researcher also recommends the company should have to give the same responsiveness and has
to enhance using non-financial performance measurements system as one of major performance
measurement system.
Description
A thesis submitted to the department of accounting and
Finance (A.A.U) in partial fulfillment for the requirement of
The degree of Master of Science in accounting & finance
Keywords
Brewery Companies, Management Control