Multinational organizations operate in multiple countries, creating separation between ownership and management that is influenced by diverse cultural, institutional, and political factors across countries. This challenges MNOs to maintain adaptability and consistency in resource management and accountability. The document requests a critical examination of how cultural differences between countries influence the management control systems of MNOs, including an evaluation of key issues from cultural variations and the role of local institutions and business environments.

1. Multinational organisations (MNOs) operate their activities in more than one country. These
organisations are classic examples of a high degree of separation between ownership and
management. In addition to this distance between owner and manager, management control is
substantially influenced by diversified institutional, cultural and political factors across countries.
Thus, adaptability and consistency in resource management and accountability remains a key
issue for MNOs. Required: Critically examine the influence of culture on the management
control system of MNOs. In your discussion, you should identify and evaluate key issues
associated with cultural differences between countries. Consider also the role of local institutions
and the business environment in different countries.