There are 6 reasons that controls are needed. But the real question is how do these 6 reasons actually help and organization? Controls are needed to (Kinicki & Williams, 2016) Adapt to change an uncertainty in consumer needs/wants, new competitors and technologies, new products, new regulations Uncover small irregularities and errors before becoming big issues Reduce costs, increase productivity and add value Discover new opportunities Deal with complexity especially in large organizations Decentralize decision-making and improve teamwork How are controls a competitive advantage?

Controls can be said to be a competitive advantage to the extent that they increase efficiency, production, quality, and reduce wastages hence customer retention and loyalty ahead of other competitors. When an organization implements a comprehensive controls system in their management, they are able to benefit more hence have a competitive advantage over the rivals. Organizations with disorganized and ineffective control systems are noncompetitive. Controls within the management of an organization can be competitive advantage when a firm has established measures to ensure that the cos of production is at the minimum cost possible. As a result, the prices of the commodities would be cheat but of high quality. The cheap prices of good quality would attract more consumers of the product. Good quality and cheap prices attracts consumer loyalty and retention hence increased profitability. Other competitor firms with no or ineffective control measures in production would produce expensive products maybe of the same quality hence lose customers thus reduce their market share.

 

 

 

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