ASSESSMENT OF MANAGEMENT CONTROL SYSTEM IN BREWERY COMPANIES: A CASE STUDY ON HEINEKEN BREWERY S.C.ETHIOPIA

Abstract

In today’s brewery industry, customers are becoming more and more demanding on timely deliveries, zero defects and short-lead times which are becoming the norm in almost all industries. Furthermore, market environment has come to be competitive; markets are becoming more international, dynamic and customer driven. This research paper examined Heineken Ethiopia on three selected elements of management control system specifically, out came control group Strategy Planning, Performance Measurement and Evaluation, Incentives, reward and motivations through evaluating the practice, identifying and relying on theoretical propositions derived from the literature and finally, to recommend on how to improve these elements in the organization. The researcher used a qualitative type case-based descriptive study aims to assess MCS. A case study is important especially in situations when the focus of the study is to answer why and how questions and when the researcher wants to cover contextual conditions relevant to the phenomenon under study (Peta Darke, etal, 1998). Hence, in order to achieve the main and specific research objectives a mixed method that is qualitative and quantitative approach was adopted in collecting and analyzing data. The main findings and recommendation of the study were that the strategic planning practice being used by Heineken Ethiopia is in line with the theoretical propositions derived from the literature and its business level strategy has been changing due to deliberate or emergent change in the internal and external environment. The practice of performance measuring process for both entity and individual level, Heineken Ethiopia has been extensively using the one that relate to financial performance. For measuring individual’s performance, Heineken Ethiopia is using various criteria and performance indicators in measuring its employee performance. Since both customer requirements and the business environment are constantly changing management of the company has to assess how successful they are at meeting the customers' needs, as well as how successful the competitors are. Which will also help the company to identify new market. The researcher also recommend the company should have to give the same responsiveness and has to enhance using non-financial performance measurements system as one of major performance measurement system