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Evaluate the effectiveness of the systems of management control in operation at Atlantic Surf - Leaving Cert Business - Question C - 2014
Question C
Evaluate the effectiveness of the systems of management control in operation at Atlantic Surf. Stock Control Stock Control is concerned with keeping optimum stock l... show full transcript
Worked Solution & Example Answer:Evaluate the effectiveness of the systems of management control in operation at Atlantic Surf - Leaving Cert Business - Question C - 2014
Step 1
Stock Control
Answer
Effective stock control is vital for Atlantic Surf as it ensures that they maintain an adequate level of stock without overstocking. This would help to minimize costs and meet customer demands effectively.
By having the right stock at the right time, Atlantic Surf can prevent production bottlenecks and lost sales opportunities. However, if stock levels are not managed properly, they may face issues such as excess stock of kite surfing equipment that remains unsold, which ties up valuable resources and could affect cash flow.
The high stock turnover indicates a successful management of branded beach clothing, but continuous monitoring is crucial to address unsold items promptly.
Step 2
Quality Control
Answer
Quality control is essential for maintaining the standards of products at Atlantic Surf. By implementing a strict quality control system, Atlantic Surf can ensure that their products meet customer expectations and regulatory requirements.
This would involve regular inspections and checks to minimize defects in products, which is crucial for customer satisfaction and brand reputation. Achieving a quality certification, such as ISO 9000, could enhance credibility and promote international marketing efforts, benefiting the overall business.