Managerial Control Systems 55

Managerial Control Systems 55

The main reference:
Merchant, K.A., Van der Stede, W.A. 2012, Management Control Systems Performance Measurement, Evaluation and Incentives, Third Edition, Prentice Hall

-Case study “Statoil”, p.487, Chapter 11 Remedies to the Myopia Problem.

1. Read the case study carefully, Case study “Statoil”
2. As an example, have a look at the case study " CATALYTIC SOLUTIONS, INC" p.458 in the same book and its questions and its answers to know out how to answer( the main points and the method). 3. have a look at Chapter 8 in the same book " Planning and Budgeting"
4. Answer the required questions

7- uagement model that is very well-suited COMPANY BACKGROUND
an turbulence and rapid change. It enables
repr-lomize quickly So that we can fend Statoil, headquartered in Stavanger, Norway, was a
i seize opportunities. This is much more larger multlnetlenal energy eomP3~”Y- The eempany
u-aditjm-ta] budget” worm, was formed in 1972 by the Norwegian government
Helge Land, C50. smog; and was wholly state owned until 2001 when its
y shares were listed on both the Oslo and New York
e Nerweglee energy eempaey’ ueee stock exchanges. After the 2007 merger with the oil
E iperfeenelfilee management Pmeess eaeee and gas division of Hydro, a Norwegian competitor,
feeeee te eeeelete the eemeeey S Statoil became the world’s largest offshore energy
e” ‘ ee mte eeetelgle eeleeeveej key. peg producer, the world’s third largest seller of crude oil,
L tn caters, neede actions, and 1nd1V1dUh and Eu1“ope’s second largest gas supplier. Statoil
A emee tlfe mefegemeet eeeee_pe‘”’ t _e was also the largest company based in Scandinavia
reeerd and eeyend budgeting _ In measured by market capitalization (nearly US$70
3‘ . f _ _ _ billion) and annual sales (US$70 billion). The com-
meeteeen e Fee Ame1eee“te’eeeee pany employed 20,000 people in 34 countries.
ltl taken a lon time but b 2010 it had – 5
3 = Statoil s original focus was on the exploration,
j”i ‘mp1emeetee_ eereee _Ste[ee’ In August production and development of oil and gas on the
‘Z-H‘ 3- Begeeee (vlee President’ Perfermeeee Norwegian continental shelf. The company’s dis-
I Deveieemem)’ Tepeeee thee tinctive competency was deep water offshore drilling
ll? Core Values is to Challenge accepted .[mthS_ in harsh environments. Ov er the years, it div ersified
l’1li- 7 gut our ammai budgeting process back in into refining and retailing of petroleum products
‘II z 2010, we decided to throw out the calendar. and production of alternative forms of energy, such
HISMHCS implementing event-Clf’1Ven dyflalflic as wind power. In October 2010, Statoil spun off its
H” g» No 1011361 €19 We require ‘c1I1)’_fofeCa5_lS ‘O retail business to create a separate public corpora-
A: v-r d at any fixed time, and the plannuig horizons t-Ion’ Stamil Fuel & Retaip
g:- -“dig 0“ thefbuslness 0‘ °Ee:aeen’lWe_ere Statoil’s strategy was to grow its long-term oil
7 in e mt‘ en He P‘.“°e55 7 S e ‘?g‘° p_emmg’ and gas production profitably while gradually build-
setting, action planning, forecasting totally . .t. . bl 6 d t. Th
C. done as needed. We want our management leg e peel we In reeewa e_ nergy Pro “C me’ e
to be bus-meSS_dn-wen’ not Ca13ndaI_dfiV€n_ This oil reserves on the Norwegian continental shelf, on
accounting. Our aim is to create the conditions Welch the Company has‘ felled for man)’ Years: were
it-. for teams in Statoil to perform to their ful] being depleted. International growth was a key
strategy. Statoil managers knew that the company
was entering a new more competitive and more
ew Ambmon_to-Acuon recess had already unpredictable era, so faster responsiveness to change
t many benefits. But Byarte acknowledged
was deemed critical. i
it e Statoil managers were still uncomfortable
x Ambition-to-Actio1i process. “It’s a long
3′, and it should be. Changing mindsets is not
‘N ” ‘ fiX,” he Said. 1 Moreinformation on the company canbefound
tease was prepared by Professor Kenneth A. Merchant and Wim A. Van der Stede.
jsv-I I © by Kenneth A. Merchant and Wirn A. Van der Stede.

Calculate your order
275 words
Total price: $0.00

Top-quality papers guaranteed


100% original papers

We sell only unique pieces of writing completed according to your demands.


Confidential service

We use security encryption to keep your personal data protected.


Money-back guarantee

We can give your money back if something goes wrong with your order.

Enjoy the free features we offer to everyone

  1. Title page

    Get a free title page formatted according to the specifics of your particular style.

  2. Custom formatting

    Request us to use APA, MLA, Harvard, Chicago, or any other style for your essay.

  3. Bibliography page

    Don’t pay extra for a list of references that perfectly fits your academic needs.

  4. 24/7 support assistance

    Ask us a question anytime you need to—we don’t charge extra for supporting you!

Calculate how much your essay costs

Type of paper
Academic level
550 words

How to place an order

  • Choose the number of pages, your academic level, and deadline
  • Push the orange button
  • Give instructions for your paper
  • Pay with PayPal or a credit card
  • Track the progress of your order
  • Approve and enjoy your custom paper

Ask experts to write you a cheap essay of excellent quality

Place an order

Order your essay today and save 7% with the discount code DISSERT7