The companys management control system is not soefficient due to following reasons:
The 3 product divisions OEM sales department areseparate leading to high inventory costs.
AM being a marketing division has different target to be met than the OEMs sales departments.
AM has to meet annual ROI target.
OEM sales departments have to meet annual sales revenuetarget.
Beginning of the year net assets are being used for ROIcalculation