Worms Inc. Control System

Executive Summary

Doug Worms has called on our consulting team to aide in the design and implementation of a control system that addresses 4 particular areas of concern within the company. In addition to this, Mr. Worms has asked that we support the Code of Ethics (COE) and provide a means to ensure the COE is all inclusive company wide. In this analysis we will identify the four areas of concern outlined by Mr. Worms, reveal our control system to remedy identified variations, and present a supplement to the COE that includes all employees of Worms Inc. that holds everyone accountable for themselves with respect to their conduct at Worms Inc.

Background

“Managerial training and development has been defined as the process by which people acquire various skills and knowledge that increases their effectiveness in a number of ways” (Skylar Powell, 2010). A training session took place at Worms, Inc. to show the managers how to be effective team leaders. Recognizing that managers that participated in the training session could have done no more than warm a seat, Doug Worms is requesting we set controls in place to track actual managerial learning and growth. In addition to deriving controls for improved managerial effectiveness, Mr. Worms has identified 3 additional areas he would like to incrementally be measured and monitored: customer satisfaction, pricing strategy, and inventory. Mr. Worms has also identified a need to ensure the COE is inclusive of all employees of Worms Inc. Agreeing with Doug Worms concerns, we have designed a control system that measures performance, contrasts current performance with the performance standard, and if deemed necessary- suggests and action plan to remedy the variation.

Analysis

It is necessary to design and implement a thorough control process as follows:

Indication of Improved Managerial Effectiveness Customer Satisfaction Pricing strategy on target with sales growth Inventory Management

Standard of Performance Using Q12, a variation of +- .50 in all aspects would be acceptable As our Vision statements states, “ develop top notch worms that out perform all other worms, staying in tune with our customers’ needs by continuously providing excellent customer service and products backed by our money back guarantee” To be priced competitively, reasonably, and profitability. To maintain inventory stock that will meet our customers’ demands without carrying an overstock that would result in more than a 5% spoilage.

Actual Performance All Q12 questions have a greater variance than -.50, except the two questions regarding co-workers. At this point, it is unmeasured At this point, it is unmeasured At this point, it is unmeasured

Compare Actual Performance with Standard of