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Refer to the Scenario Below to Answer the Questions That

Question 10

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Refer to the Scenario below to answer the questions that follow.
Control Systems at Statco (Scenario)
Statco is a statistical software company based in British Columbia.This publicly traded firm has grown dramatically over its 25-year history,and it now has more than 12,000 employees worldwide.As it has grown,the company has adopted a hierarchical structure,which emphasizes organizational authority.Management relies heavily on administrative rules,regulations,and policies in order to meet its goals.However,the company has struggled to meet projected revenues for each of the past 10 quarters.While it is true that world financial markets have been very turbulent over the past three years,demand for the firm's products has typically been recession-proof in the past.Now,the board of directors is growing increasingly impatient with the management team.The firm's president,Susan Wong,is concerned that recent performance may indicate that management has lost control of the work force.She has hired Mark Adams,an expert in control system design,to evaluate Statco and offer suggestions to improve the firm's performance.
-Mark suggests to Susan that each division of the company should be turned into a profit centre and be evaluated by the percentage of total corporate profits each contributes.This approach is most representative of ________ control.


A) economic
B) bureaucratic
C) clan
D) environmental
E) market

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