Corporate management systems based upon financial targets and budgetary controls tend to work best in multibusiness companies with relatively few,closely-related,technology-intensive businesses

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Corporate management systems based upon financial targets and budgetary controls tend to work best in single-business companies with less complexity, as they can easily measure and monitor the financial performance. In multibusiness companies with diverse and technology-intensive businesses, other factors like market share, innovation, and product development are equally important, which cannot be just measured in financial terms. Therefore, a more agile and flexible management system is needed, which focuses on achieving strategic objectives rather than just financial targets.

Corporate Management Systems Based Upon Financial Targets and Budgetary Controls