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Management Control Systems: Performance Measurement, by Kenneth Merchant, Wim Van der Stede

By Kenneth Merchant, Wim Van der Stede

The book's key strengths are its actual international, useful examples, the large variety of foreign case fabric, insurance of foreign matters and multinational businesses, and the assurance of ethics and not-for-profit matters. The booklet is perceived as thorough, logical, and straightforward to learn.

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Extra info for Management Control Systems: Performance Measurement, Evaluation and Incentives (2nd Edition)

Sample text

With franchising, business ownership, with all of its risks and rewards, is passed to a franchisee. So are the decision rights, although these are constrained by the franchise contract to ensure that franchisees do not deviate from the franchise concept. For example, McDonald’s hamburger franchisees must offer Big Macs, which are an important element of the menu concept used around the world. But the control advantage of franchising is that franchisers can spread the use of their concept and earn fees and royalties with minimum control risk because franchisees’ rewards stem directly from the profits they earn.

Personal training clients paid $50 per hour for their instruc- This case was prepared by Professor Kenneth A. Merchant. Copyright © 2001 by Kenneth A. Merchant. 20 tor and use of the club during prime time. m. ) the price was $35 per hour. The price per student for each hour-long fitness class was $12. Some quantity discounts were offered to clients who prepaid. Unlike the large health clubs, Private Fitness did not offer memberships for open access to fitness equipment and classes. Prior to starting Private Fitness Rosemary had been working as an aerobics instructor and fitness model.

The performance problems seemed to have begun approximately at the time when a large drugstore chain opened a branch two blocks away. This case was prepared by Professor Kenneth A. Merchant. Copyright © 1996 by Kenneth A. Merchant. Case Study Private Fitness, Inc. I don’t know how much money I might have lost because of Kate. She is a long-time friend whom I thought I could trust, but I guess that trust was misplaced. Now I’ve got to decide whether or not to fire her. And then I’ve got to figure out a way to make my business work effectively without my having to step in and do everything myself.

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