Functions of Management, Strategic Control Term Paper

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At Johnson and Johnson, most of the traditional means of control are used. The most important form is the direct control. This means that regional managers, in charge of a certain geographic area, visit the company centers regularly in order to check the commercial and financial performance, to see how the respective plant is evolving in the competitive environment, etc.

The indirect control is realized at Johnson and Johnson by indirect communication, in the form of reports, evaluations from the staff in the field, etc. These are generally sent once month to the regional headquarters and decisions are made based upon them. At times, the central headquarters of the company are involved when significant decisions are to be made.

The third type of control used at Johnson and Johnson is the preventive control.

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In the fast paced business environment we live in nowadays, it is most important to be able to prevent an error before it occurs and to take the necessary means in order to make sure that it doesn't occur. This type of control is strongly linked to the strategic planning phase and implies a keen analysis of all information coming from different parts of the company, from the staff in the field, etc. For example, financial reports are keenly analyzed each month in order to make sure that any possible cash or debt-related problem is discovered at a time when measures can still be taken to prevent the problem occurring some time in….....

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