The Use of Management Control Systems in the Hospitality Industry

Sammanfattning: Purpose: The purpose of the thesis is to describe and analyze the use of management control systems in the hospitality industry. Methodology: The study is mainly a descriptive, multiple case study based on deductive reasoning. However, explanatory elements occur. The nature of the study is to a large extent qualitative and is primarily based on interviews and analysis of current management control tools. The analytical strategy includes pattern matching, explanation building and cross-case synthesis. Theoretical Perspectives: The main text editions included are Anthony and Govindarajan (2003 & 2007), Lindvall (2001), Merchant and Van der Stede (2007) and Samuelsson (2004). Furthermore, the use of management control systems in the hospitality industry is examined using literature such as Harris (1995), as well as other articles. Empirical Foundation: There are four units of analysis included in this study: (1) BrewPub København; (2) Färs & Frosta Sparbank Arena; (3) Kulturmejeriet and; (4) Scandic Hotels. This organization is divided into three subunits; Scandic Kramer, Scandic Malmö City and Scandic Star Lund. Each organization is described in terms of background, situational factors, strategy & management philosophy, organizational structure and their use of management control systems. Research Findings: The design and use of management control systems were found to be different in each unit of analysis as the tools were tailored to the needs of the individual organization. Overall, the systems designed in the units of analysis were consistent to what has been presented in academic theory. The authors found there to be four key contingency factors that affect the design of control systems. The factors include strategy, size & structure, ownership and product life cycle.