Q.A company 'M' limited is manufacturing mobile phones both for domestic Indian market as well as for export. It had enjoyed a substantial market share and also had a loyal customer following. But lately it has been experiencing problems because its targets have not been met with regard to sales and customer satisfaction. Also mobile market in India has grown tremendously and new players have come with better technology and pricing. This is causing problems for the company. It is planning to revamp its controlling system and take other steps necessary to rectify the problems it is facing.

Let’s break this down step by step.

a. Benefits of a good control system for Company M

A well-designed control system will help the company in several concrete ways. It will enable management to verify whether actual sales and customer satisfaction levels match the set targets. It will help in making efficient use of resources by reducing wastage and spoilage, since each activity is checked against predetermined standards. It will also aid in judging the accuracy of standards — if targets are consistently missed, the system will reveal whether the standards themselves need revision. Finally, it will improve employee motivation by linking performance to rewards and corrective action.

b. Relating planning with control

Planning and control are inseparable — they are often called the inseparable twins of management. For Company M, planning sets the sales targets, pricing strategies, and customer satisfaction benchmarks. Control ensures these plans are actually executed. The company must first set clear, measurable objectives (e.g., “achieve 15% market share in the domestic segment” or “reduce customer complaints by 20%”). Then, control measures such as monthly sales reviews, customer feedback audits, and competitor analysis will track progress. If a deviation is found — say, sales are 10% below target — the company can either adjust its strategy (e.g., revise pricing or launch a promotion) or tighten execution. This loop of plan → execute → check → correct is how planning and control work together.

c. Steps in the control process

The company should follow these five sequential steps:

• Setting performance standards — For example, monthly sales volume, customer satisfaction score (e.g., 4 out of 5), and market share percentage.
• Measurement of actual performance — Collect real data on sales figures, customer feedback, and competitor pricing. …

Let us begin with the context. M Limited is a mobile phone manufacturer serving both the domestic Indian market and export markets. It once enjoyed a strong market share and loyal customers, but now faces trouble: sales and customer satisfaction targets are not being met, while new competitors bring better technology and pricing. The company is right to look at revamping its control system. In management, control is not about policing people — it is about steering the organisation toward its goals. For a company in a fast-moving industry like mobile phones, where technology and customer preferences shift rapidly, a good control system is not a luxury; it is a necessity.

a. Benefits the company will derive from a good control system

A well-designed control system offers several concrete benefits to M Limited.

First, it helps in achieving organisational goals. By setting clear performance standards for sales, customer satisfaction, and quality, and then monitoring actual performance against them, the company can ensure that every department — from production to marketing to after-sales service — is pulling in the same direction. Without control, even the best plans can drift.

Second, it enables efficient use of resources. Mobile phone manufacturing involves significant investment in raw materials, labour, and technology. A control system helps identify wastage, delays, or underperformance early, so corrective action can be taken before losses mount.

Third, it improves employee motivation and accountability. When employees know that their performance is being measured fairly and that feedback will be given, they tend to work more responsibly. Clear standards also reduce ambiguity about what is expected.

Fourth, it facilitates better coordination. In a company that serves both domestic and export markets, different departments — production, sales, logistics, customer service — must work in sync. Control reports highlight where coordination is breaking down.

Fifth, it supports decision-making and adaptation. The mobile phone market is dynamic. A good control system provides timely information about changing customer preferences, competitor moves, and market trends. This allows management to revise plans and strategies proactively rather than reactively.

b. How the company can relate planning with control to ensure plans are implemented and targets attained

Planning and control are often described as two sides of the same coin. Without planning, control has no standards to measure against. Without control, planning becomes an academic exercise with no follow-through.

For M Limited, the link between planning and control can be strengthened in the following ways:

• Plans must be translated into specific, measurable standards. For example, if the plan is to increase domestic market share by 10% in the next year, the control system should set quarterly sales targets, customer satisfaction scores, and delivery timelines. These become the benchmarks.

• Control should provide feedback to planning. If actual sales fall short, the control system should not just flag the gap — it should also help identify why. Is it because of pricing? Technology? Distribution? This feedback then feeds into the next planning cycle, making plans more realistic and grounded.

• Budgets serve as a bridge. A budget is both a planning tool (allocating resources) and a control tool (comparing actual spending and revenue against projections). M Limited should use budgets for each product line and market segment.

• Regular review meetings and reports should be scheduled. Monthly or quarterly reviews of performance against targets allow the company to take corrective action before small deviations become large problems.

c. Steps in the control process that the company should follow to remove its problems

The control process consists of five logical steps. M Limited should follow these systematically.

Step 1: Setting performance standards. The company must first define what it expects. For sales, standards could be monthly units sold, revenue targets, or market share percentages. For customer satisfaction, standards could be based on feedback surveys, complaint resolution time, or repeat purchase rates. These standards should be realistic, clear, and aligned with the company's overall objectives. …