Managerial Control Systems 55The 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.Important1. 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 questionsStatoil7- uagement model that is very well-suited COMPANY BACKGROUNDan turbulence and rapid change. It enablesrepr-lomize quickly So that we can fend Statoil, headquartered in Stavanger, Norway, was ai seize opportunities. This is much more larger multlnetlenal energy eomP3~”Y- The eempanyu-aditjm-ta] budget” worm, was formed in 1972 by the Norwegian governmentHelge Land, C50. smog; and was wholly state owned until 2001 when itsy shares were listed on both the Oslo and New Yorke Nerweglee energy eempaey’ ueee stock exchanges. After the 2007 merger with the oilE 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 energye” ‘ 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. StatoilA emee tlfe mefegemeet eeeee_pe‘”’ t _e was also the largest company based in Scandinaviareeerd and eeyend budgeting _ In measured by market capitalization (nearly US$703‘ . 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 – 53 = 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 drillingll? Core Values is to Challenge accepted .[mthS_ in harsh environments. Ov er the years, it div ersifiedl’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, suchHISMHCS implementing event-Clf’1Ven dyflalflic as wind power. In October 2010, Statoil spun off itsH” 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 & Retaipg:- -“dig 0“ thefbuslness 0‘ °Ee:aeen’lWe_ere Statoil’s strategy was to grow its long-term oil7 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. ThC. done as needed. We want our management leg e peel we In reeewa e_ nergy Pro “C me’ eto be bus-meSS_dn-wen’ not Ca13ndaI_dfiV€n_ This oil reserves on the Norwegian continental shelf, onaccounting. Our aim is to create the conditions Welch the Company has‘ felled for man)’ Years: wereit-. for teams in Statoil to perform to their ful] being depleted. International growth was a keystrategy. Statoil managers knew that the companywas entering a new more competitive and moreew Ambmon_to-Acuon recess had already unpredictable era, so faster responsiveness to changet many benefits. But Byarte acknowledgedwas deemed critical. iit e Statoil managers were still uncomfortablex Ambition-to-Actio1i process. “It’s a long3′, and it should be. Changing mindsets is not‘N ” ‘ fiX,” he Said. 1 Moreinformation on the company canbefound atwww.statoil.com.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.I197
Do you need a similar assignment done for you from scratch? We have qualified writers to help you. We assure you an A+ quality paper that is free from plagiarism. Order now for an Amazing Discount!Use Discount Code “Newclient” for a 15% Discount!NB: We do not resell papers. Upon ordering, we do an original paper exclusively for you.