Management Control
in Global Mass Market Retailers
Francesca Gennari*
Abstract
For large retail firms, management control is a valid tool with which to face the
competition of global markets and to manage corporate complexity. The management
control systems of global retailers have specific characteristics that stem from the
geographical dispersion of their organisational units and frequently from the existence
of cooperative alliances with other companies
Keywords: Management Control; Global Competition; Global Retailers; Mass
Market Retailers
1. Global Markets and Management Control
In recent decades, globalisation has also involved the marketing companies that
operate on mass retail markets. Global retailers are generally characterised by
product ranges that are able to satisfy increasingly broad and varied consumer
demand and by the territorial expansion of their sales network.
On global markets, where traditional space-time barriers are instable, and
competition space is constantly being redefined, strongly competition-oriented
logics are establishing themselves, in which time and the ability to anticipate one’s
rivals are the main critical success factors (market-space and time-based
competition)1
. Retailers who intend to maintain or improve their performance on
these markets, often find themselves having to deal with problems related to their
increasing complexity, in terms of both the composition of the product/market
combination (strategic complexity) and their organisational structure
(organisational complexity). In fact, the levels of complexity identified must also
be assessed from a broader viewpoint, i.e. one that does not only take the individual
company into account but also considers the relations established with other
companies (commercial and/or industrial). From a global perspective, processes to
produce commercial services may involve companies/groups of companies in
which the individual structures maintain their importance, although shared
transverse processes also acquire significance.
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