1. (Mt) – MGMT 3123 Arizona State University Management Control Process
Questions
MGMT 3123 PRINCIPLES OF MANAGEMENT-FALL 2019 ASSIGNMENTS FOR WEEK 9 (week
of October 14, 2019) Item 2: Watch the videos below to gain a better understanding of the
Management Control Process. Effective Control Systems
https://www.youtube.com/watch?v=QdGfMrdE4f8 Management Control
https://www.youtube.com/watch?v=x2dALE8QGVs The Control Process
https://www.youtube.com/watch?v=Xaf4iNOKRyU Key Points from Chapter 16 Control: 1.
Control is the fourth Management Function (Plan, Organize, Lead and Control). This is the
function that is used by managers to insure that the goals and plans that a manager
develops for the organization are actually achieved. 2. In order to achieve the goals of any
organization, an appropriate Control Systems must be developed to assure that the goals of
the organization are being met; and if they are not being met, corrective action is taken to
get performance back on track before it is too late to recover. 3. Defining what to control in
an organization is the starting point of any effective control system. Each type of business
has a unique set of activities or outcomes that must be controlled (managed) to insure
success. For a few examples: In manufacturing it is employee productivity and product
quality; in a retail business it is customer service, inventory and operational costs. 4. There
are three basic types of Control Systems that can be used to monitor performance against
goals: Feedback (measuring results after the event); Concurrent (monitoring results as a
process is occurring); and Feed-forward (controlling process inputs before the process
begins). Each of these methods of control are applicable, depending on the nature of work
to be controlled. 5. Organizations have overall control systems or philosophies to control
the overall performance of their organization. Some use Policies and Procedures
(Bureaucratic Controls); Goal Setting and Performance Measures (Objective Controls);
Organization Culture (Normative Controls); and Self-directed work groups (Concertive
Control and Self-Controls), as overall philosophies of how they will manage overall control
in their organizations. The culture and leadership of the organization determines what type
of overall control system an 1|Page organization uses. 6. The Balanced Scorecard is a
management control system that can be used for an entire business that balances all facets
of the business to achieve long-term results. It blends (or balances) financial performance
goals with customer service goals, internal operational goals, and organizational
development goals, so that all aspects of the business are given equal attention by

2. management. Companies that use this overall control and goal setting approach have better
long term performance that those who do not. Southwest Airlines, the most successful
airline in the U.S., has used the balanced score card for a number of years and sets goals in
each of the four performance areas and leads all of their employees to focus on achieving
the goals. ITEM 3: Discussion Board: Imagine that you are owner of a Food Truck that sells
specialty gourmet sandwiches traveling around to local events throughout the state of
Arkansas during the summers. In order to assure that your business is successful what are
three things that must be controlled? What Standard would you set for each of the three
items? What Method of Control would you use (feedback, feed-forward, or concurrent) for
each of the items? Describe in some detail how you would control each of the three? Post on
Week 9 Discussion Board, your answers to each of these questions as your initial post.
Comment of s of three other student posts on their selection of items to control and their
method of control. As your Final Post, comment on what you learned from the other student
posts and how you might change your control plan. Discussion Board is due by Friday at
midnight. LATE ASSIGNMENTS ARE NOT ACCEPTED ITEM 4: Post to your Weekly Learning
Journal Week 9 Entry by end of week. 2|Page 3|Page ` BIZ CAFÉ SIMULATION
INSTRUCTIONS-ONLINE Biz Café is a business simulation that gives you real world business
management experience by setting up and operating a coffee shop near a college campus. In
the Biz Café simulation, you will be making a number of business decisions each week. After
each round, the weekly results are summarized, including: revenues (sales), cups of coffee
sold, coffee usage, total operating costs, customer satisfaction, brand recognition, cash
balance, and net income. Reviewing the results from each week gives you an opportunity to
analyze why you got the results, and use that knowledge gained to adjust your decisions for
the next week. Based on what you learned from the prior week’s round, and any new
information presented, you will make new decisions and/or changes to prior decisions for
the next weekly round, and again review and analyze the results for any changes for the
next week’s round. There will also be weekly News posted after each round that can affect
your decisions for the next round. Each round will also present you will present you with
Incidents and/or opportunities that need to be dealt with. As in a real business, things
happen each week that must be given management attention. The information below
outlines how you should approach the simulation to gain from the most from the learning
experience. There is also an outline of what information will be required for your paper
upon completion of the Live Rounds. REGISTER-Begin by registering for the simulation and
paying the $29.95 fee. You should have received an email from Interpretive Simulations
inviting you to register. If you did not, notify me by email and I will have an invitation sent.
1. Once you have registered and logged in to the site, Read the Student Manual. You can
access the manual at any time online. The Student Manual has an Introduction (which gives
an overview of the Biz Café simulation and how to navigate the software) and three major
sections: • Business Essentials-a brief introduction to the business and the management
concepts that will be used in the simulation. • The Biz Café Case-information-background
information on the business that you will be setting up and running. • Biz Café Operations
Guide-outlines the operational aspects of using the Biz Café simulation software including
how to get started, the various menus and help features, and a detailed description of each

3. decision screen and report. To successfully complete the Biz Café simulation it is important
that you gain a good understanding of both the operation of the simulation software as well
as the basics of the Biz Café business. 1|Page 2. BIZ CAFÉ QUIZ-After you have read and
reviewed the Student Manual, you should take the online quiz to confirm that you
understand the basics of the business and how the simulation software functions. You may
take the quiz up to 5 times, as it will help assure that you understand the basics of the
business before you begin the simulation. This will help you make better decisions and
avoid mistakes. The quiz grade is not recorded and will not affect your course grade in any
way. 3. PRACTICE ROUNDS-. You can complete up to 6 practice rounds to become familiar
with how the simulation works, what kind of decisions you are to make, and what results
you are getting. You may also replay any of the Practice Rounds to change any decisions you
want and see how the results change. Take full advantage of the practice rounds, as this will
have a big effect on the results your get in the live rounds. In the past, those students who
did not do the practice rounds struggled with the simulation, and made many bad decisions
due to the lack of understanding how the simulation software works, and how various
decisions affect the results. Resources are available at Interpretive Simulations if you have
any problems with the software or with any of the functions of the software. They can be
contacted through the website at any time. As you complete each PRACTICE ROUND, keep a
record of each of the decisions you make (initial business setup and strategy decisions;
management decisions-number of managers and servers and pay; marketing decisions-
pricing and advertising; and operations decisions-shop hours and pounds of coffee to
purchase, and number of coffee cups to purchase); the reasons why you made each decision
(what facts and information you used to make each decision); and the results you got. This
information will give you a better understanding of the interrelationship amongst the
various variables, and help you make better decisions in the live rounds. 4. LIVE ROUNDS-
START-UP DECISIONS- Begin the live rounds by selecting a strategy for your business and
make the Start-Up Decisions to support your chosen strategy (choice of coffee maker,
furniture/décor selection, etc.). As an example: are you going to be a low cost coffee shop, a
modern moderate priced coffee shop, or a higher quality, upscale coffee shop? Explain why
you chose your strategy and how your start-up decisions support that strategy. Name your
coffee shop, and you can also create a logo if you like (but this is not required). In order to
play the live rounds, you must have a name for your coffee shop. Chapter 6 in our textbook
will give you some idea of what the basic strategies are that can be selected. 5. LIVE ROUND-
PLAY. After you make your start-up decisions, you are ready to open your coffee shop and
begin the first week of business. Opening Decisions-to start up the coffee shop (Round 1),
make the decisions in each of the decision categories that you will start the business with:
days and hours of operation; 2|Page number and pay of managers and servers; advertising;
number of special logo cups to order; type of coffee and number of pounds to order; and
pricing of coffee. Understanding what decision you made and why you made them. What
facts did you use to make the decisions, including any principles that you applied from this
management course or other business courses you have had such as marketing, operations,
accounting, or finance. How do your opening round 1 decisions support your strategy? Use
the tools available such as the Coffee Calculator, Decision Summary, Service Capacity

4. Report, and Cash Budget Analysis, and Breakeven Worksheet to help make decisions and
evaluate results. Using these tools will help you make better decisions and avoid major
mistakes. Your round 1 decisions should support your overall business strategy and you
should have a sound business decision for each of the Round 1 Decisions. Handle the Biz
Café Special Incidents or Decisions that come up for each of the live rounds, and keep a
record of the decision you make and why you made them. Special Incidents are things that
occur each week and/or opportunities that are presented that you may or may not choose.
Also Review any News that is available after each round to see if there is any news that
might affect your business decisions for the next round. Before you advance each round,
check the Decision Summary, which provides you with a summary of your decisions. If you
want to change any of them based on this summary, you can before you advance to the next
round. Once you ADVANCE, decisions become final for that round and cannot be changed.
Review the results from each round (look at all the metrics provided), and determine why
you got the results and decide, based on the results, what you will change in the next round.
Also consider the Incidents, News and any other reports presented. Complete this process
for all 16 Live Rounds. It is not recommended that you do all of the rounds at one time or
even on the same day, as you need to take time to carefully evaluate the results to
determine why you got them, then decide what you need to change to get better results for
the next round. Student who rush through all the rounds, do not do very well. 6. FINAL
PAPER-You will complete a final paper on the Biz Café simulation following the guidelines
for written assignments for this course. Additional outside references will be not required
for this paper, but all other APA requirements apply. The paper should include the
following: • An ABSTRACT for the paper (see sample in Course Guidelines posted
Blackboard for format and content requirements) 3|Page • • • • • Week No. Week’s
Revenues Week’s Cups Sold An INTRODUCTORY PARAGRAPH stating the purpose of the
paper and a brief description of what you will be covering in the paper. A brief BIZ CAFÉ
CASE BACKGROUND (background of the Biz Café case, objectives, $25,000 loan, location,
etc.) The BUSINESS STRATEGY that you selected for your coffee shop, why you selected the
strategy and supporting Startup Decisions. OPENING DECISIONS-Week 1 decisions. What
was each decision for the first week of operation in all of the decision categories, and why
you made each one? (Management-manager’s salary, number of managers, number of
servers and their pay; Marketing-pricing of coffee, and advertising type and frequency;
Operations-days and hours of operation, type of coffee purchased, number of logo cups
purchased; number of pounds of coffee purchased). How do your start-up decisions support
your strategy? SIMULATION RESULTS-the overall results for the entire simulation (all 16
weeks); and an explanation of why you got them in each of the measurement categories
(ending cash balance; cumulative total revenues (sales); Brand Awareness; cumulative net
income (or loss); total cups of coffee sold for all rounds; Customer satisfaction at end of last
round; Brand Awareness at end of last round). Include a table with data for each week. Also
total on the table the Revenues, and Cups sold for all 16 weeks. Discuss the overall results
and explain the major reasons why you got the results in each of the metric categories
(revenues, cups sold, net income, cash balances, customer satisfaction, and brand
awareness). Week’s Net Income Price for Medium Cup Cash Balance Customer Satisfaction

5. Severs Hourly Wage Adv ertisi ng. No. Servers $ Week’s revenues and Week’s Net Income
should be totaled at the end of table for all 12 weeks. Also include in your results a summary
of the Special Decisions for each week: Week No. Issue Decisions and Reason 4|Page Brand
Awareness These two tables will help you to fully analyze and explain the reasons for your
final simulation results. This section of the paper should also include an analysis of the
results including some information of why you got the results that you did. • • • DONE
DIFFERENTLY-based on the analysis of your results, what might you have done differently if
you could start the simulation over? What mistakes did you make and how could you have
made better decisions? LEARNED ABOUT MANAGING A BUSINESS -as a result of doing the
simulation, what did you learn about managing a real business? What are some of the things
that you would do differently if it was a real business and you were the owner and spending
your own money? SUMMARY AND CONCLUSIONS-a closing paragraph that summarizes the
key points of the paper. Submit paper through Blackboard as an assignment under Biz Café
Assignment by due date. 5|Page 6|Page Biz Cafe-Second Chance-Principles of Management
Principles of Management Students: Now that everyone has completed their Biz Cafe
Analysis Papers and have shared their results and learning with other students through this
week’s Discussion Board, you all have an opportunity to apply what you have learned and
complete another set of 16 Live Rounds over the next two weeks. I would encourage
everyone to consider what mistakes they made in the first set of Live Rounds, and what was
learned from other students, and also to take time to analyze the results after each round
and end of with a successful, profitable business. BIZ CAFÉ SIMULATION 1 Biz Café
Simulation for Good Times Coffee Shop Abstract 1 BIZ CAFÉ SIMULATION 2 Using Biz Café
Simulation to Make Important Decisions on Modern Moderate-Priced Coffee Shop: Making
Periodical Decisions at Good Times Coffee Shop Biz Café is an evitable tool for all
entrepreneurs. The unique features of this software include the provision of making
decisions at each decision category. At the initial stages, the Good Times Coffee Shop makes
essential decisions regarding the best days and hours of operations. Additional the
simulation process enables the coffee shop to come up with the right number of all the
workers that would operate the business to get the maximum profit. The wages for each
worker and the number of resources such as cups to start with also make part of the initial
decisions. The subsequent stages of the decisions such as analysis of the previous
operations based on efficiency. The operators of the Good Times Coffee Shop use the
simulation results on such factors as the salaries, logistics on resources, and the production
quantity to make further analysis of the viability of the decision. Depending on the results
versus the expectations, the coffee shop may decide to either make changes to the prior
choices or make new decisions. This tool aids this process by creating a summary by
displaying coffee calculator, capacity report on service, breakeven worksheet, and cash
budget analysis. Introduction BIZ CAFÉ SIMULATION 3 Good Times Coffee Shop is a modern
moderate-priced shop that is reliant on Biz Café to guide its daily operations. Its
establishment and activities have to respect several factors to become successful. Being a
new venture, managers can easily make poor decisions based on their thoughts and
understanding. The initial conclusions about the establishment of the shop have a
significant impact on its overall operability. Uninformed choices at this stage is an

6. implication of an early failure. The subsequent steps are not any different. The prior
decisions may be valid for the success of the business. However, poor analysis and following
solutions may change the whole course of the operations. Biz Café is a tool that the shop
uses to guide all its activities from the initial planning to the final execution of the project. It
helps in filling the decision gaps that may make the business not successful. Using this tool
effectively can make the coffee shop implement all its operational activities without leaving
anything to chance. At the same time, the device works to eliminate the gaps that
groupthink theory by the managers may present. This study aims to analyse the
effectiveness of the Biz Café Simulation software in decision making. It helps in making
workable decisions on factors such as timesaving, cost-saving and giving the shop a
competitive advantage. Biz Café Case Background Biz Café is a leading computer program
for simulation of the decisions. The software is an essential tool that equips students with
the necessary skills of creating and running businesses. In particular, the stimulation
process leads the users into learning skills needed for managers, operators, marketers, and
accountants, these skills are improved by running their coffee shops for a maximum of 16
simulated weeks. This duration is a reasonably long period to make the student gain all the
necessary decisions regarding the management, operations, marketing, and accounting
techniques. BIZ CAFÉ SIMULATION 4 The setting up this venture requires approximately
$25000. This amount calls for external sourcing. The entrepreneur seeks a loan from any
financial institution and commits to paying within the specified duration of time. Also, Good
Times Coffee Shop intends to open its premises within the institution with the target
customers being the students. The entrepreneur of the Good Times Coffee Shop is a young
businessman. He may lack the necessary skills that he requires for the proper management
of this venture. Some of the factors that contribute to this inadequacy are lack of experience,
new investment, and lack of specific approach to the business. However, he uses the
software to help him come up with various essential management techniques that ensure
the success of the venture. Objectives Engaging in a new venture may be tasking and
demanding. However, laying an appropriate foundation is a big step towards success. The
foundation includes specifying the objectives of the investment. These objectives inform the
direction the business takes by keeping it on course concerning its overall target. The
principal goals include: • To maximize the decision automation process of the Biz Café
simulation. • To establish the most effective ways of remaining competitive in the business
operation cost based on the simulated decisions. • To construct proper evaluation
techniques on the project. • To come up with a modern moderate-priced sustainable coffee
shop. BIZ CAFÉ SIMULATION 5 Business Strategy Good Times Coffee Shop chose the
strategy of gaining a technological advantage. This strategy is to ensure that the
implementation of the plans of the business respect the dynamic technology environment.
The business sector is not static any more. There are changes that all the organizations must
keep up with to be successful. The choice of the strategy is a critical element in ensuring
that all the vital decisions regarding the business are keenly made. The start-up process
acknowledges that all the decisions made impact the organization differently. However, at
the start-up, the entrepreneur tends to lack enough information that facilitates the
conclusive right decision-making process. As such, the entrepreneur identifies the right

7. decisions based on the options got from the simulator. Here, he can identify potential
customers. Afterwards, there is an identification of the available options. The prospect that
the entrepreneur comes up concerning the values of the start-up. The simulation helps him
to gather the information that is relevant in operation. These pieces of information are
necessary for implementing any decisions to either proceed with the project or not. The last
stage is the evaluation, where the entrepreneur evaluates all the possible outcomes. The
assessment informs the decision to execute the plan and all the requirements. BIZ CAFÉ
SIMULATION 6 Opening Decisions: Week 1 Decisions Management The venture needs the
service of two managers who are to be paid not more than $100 per month. On the other
hand, the enterprise needs a total of seven servers who will earn $40 each per month. This
decision comes from the fact that human resources need motivation. However, the total
cash inflow should be substantially different from the outflow so that the business
continues operating and making a profit. The decision on the number of employees is based
on the fact that the managers should help one another in making decisions. The servers
should not be seven to facilitate the smooth serving process. Marketing The price per cup of
coffee should be $5. This is a fair price to all classes of people and does not lock any possible
customer out. The venture finds social media advertisements are handy in operation
because of the bigger audience it reaches over a short period. Social media is a cheap
platform that encourages advertisements of the venture every day. It has a provision of
efficiently adding new features easily and quickly to the current coffee information daily. It
also has the requirement for getting all the feedbacks that can also inform some decisions.
Operations The business operates from Monday to Saturday. The working hours are from 6
a.m. to 10 p.m. The days are chosen because of the many sales that occur on them. The
working hours accommodate all the early risers to all those who stay awake till late in the
evening. Peet’s coffee and McCafe lead the coffee brands that the coffee shop deal in. These
are the targets favourite brands and are cheap concerning the goals of the business.
However, the shop intends to use no logo cup as a way of saving on the cost. Any container
can do so long as the customers get a fair treatment at the shop. The venture intends to use
three pounds of coffee per week. BIZ CAFÉ SIMULATION 7 The three pounds yield
approximately twelve pots of strong coffee. The servers deliver six coffee cups per cup,
thereby making a total of 216 serving per week. The value of pounds is dependent on the
fact that the venture targets at least 200 customers per week. The startup decisions support
the strategy by outlining a fair balance between the expenses and the income. The strategy
decisions ensure that the implementation of the policy is fulfilled. BIZ CAFÉ SIMULATION 8
Simulation Results Sever Advertisi No. Customer s ng. Satisfactio Hourl n y Price Week’s
Week’s Week’s Week Revenu No. for Cash Net Cups Sold es Mediu Server Brand s Balance
Income Awareness $ m Cup Wage 1 1040 208 297 5 405 5/5 5 20 7 3/5 2 995 199 302 5
382 5/5 5 20 7 3/5 3 1005 201 313 5 391 5/5 5 20 7 4/5 4 1015 203 310 5 366 5/5 5 20 7
4/5 5 1050 210 306 5 390 5/5 5 20 7 4/5 6 1080 216 312 5 395 5/5 5 20 7 4/5 7 1065 213
305 5 399 5/5 5 20 7 5/5 8 1045 209 302 5 397 5/5 5 20 7 5/5 9 1095 219 304 5 390 5/5 5
20 7 5/5 10 1075 215 313 5 391 5/5 5 20 7 5/5 11 1120 224 315 5 394 5/5 5 20 7 5/5 12
1055 211 312 5 396 5/5 5 20 7 5/5 13 1065 213 304 5 400 5/5 5 20 7 5/5 14 1050 210
311 5 398 5/5 5 20 7 5/5 15 1070 214 303 5 396 5/5 5 20 7 5/5 16 1085 217 306 5 389

8. 5/5 5 20 7 5/5 BIZ CAFÉ SIMULATION Week Issue 9 Decisions and Reason No. . 1
Management There should be two managers. The managers can work together to come up
with a concrete solution 2 Price The cheapest coffee brands chosen. They will maximize the
profits 3 Advertisement Creation of brand awareness using social media. Social media is
cheap, widespread and quick. 4 Logistics Purchase of production requirements on monthly
basis. Enjoying discount 5 Feedback Analysis of the customers’ reviews. Identification of
any gaps present. 6 Policy Considering government policies. To avoid fines 7 Technology
Adopting modern equipment. To remain efficient. 8 Market Market analysis. To establish
what the venture can do differently 9 Production Steady production rate. To avoid
depletion. 10 Employees Ensure employees’ flexibility. To adapt to any changes. 11
Employee’s welfare Ensure employees’ welfare. BIZ CAFÉ SIMULATION 10 To ensure
constant productivity. 12 Production Defined production hours. For consistency. 13 Sales
Steady sales. To measure all the risks that may be available. 14 Logos Use no logo To allow
avoid unnecessary expenses. 15 Hygiene Ensure the best hygiene practices. To raise
customer impression. 16 Auditing Regular internal audits To avoid any financial loopholes.
Discussion The overall results show a growth in sales. As a consequence, the revenue, the
net income registered a rising trend. Customers’ satisfaction and brand awareness also
overly increased. The results can be attributed to the fact that the simulator guided the
decisions regarding all these factors efficiently. BIZ CAFÉ SIMULATION 11 Done Differently
The venture would have used the logo as a way of identification. However, the enterprise
made the mistake of not providing all the brands to accommodate all the consumers. All the
gaps would have been filled by performing a prior market analysis. The analysis would
reveal the real expectations of the potential consumers. Learned About Managing a Business
Managing a real business is an involving task. It requires a combination of several factors.
They all depend on the decisions that the managers make. The choices are the true
cornerstones of all the business operations. If it were a real business, things would have
been done differently. There should be a prior analysis of the market so that the right
expectations of the consumers are respected. Summary and Conclusion Biz Café is an
essential tool that aids the process of decision-making. With it, the entrepreneurs can be
sure to get the accurate picture of a business operation. It uses its features to display all the
essential components that the managers analyse critically. Afterwards, essential solutions to
the problems are developed. However, the simulation process is different from the real
world execution of the project. In the real world project, an implementation of a business
venture requires more than just relying on the observations that are seen on the operations.
The real-world business uses other factors such as own judgement and implementation of
other supportive activities. BIZ CAFÉ SIMULATION 12 References DeMicco, F., & McCracken,
J. D. (2017). The BizCafe Interpretive Simulation case study to teach strategic
entrepreneurship. Journal of foodservice business research, 20(5), 579594. Felton, E.
(2018). Filtered: Coffee, the Café and the 21st-Century City. Routledge. Herriott, L. (2007).
1,000 Restaurant Bar and Cafe Graphics: From Signage to Logos and Everything in Between.
Rockport Publishers.