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lorah, a district manager for a commercial food distributor, is in charge of implementing the company’s plan to reduce cost of goods sold by 12%. lorah is reviewing quarterly expense reports to determine how each section of her district is progressing toward the cogs reduction, thus lorah is controlling the direction by

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anthougo

Lorah is controlling the direction by comparing results with the plan.

  • This is the first phase of the planning/control cycle where Lorah, as the district manager, reviews the expense reports so that she could assess if the reduction of the cost of good sold (cogs) for the quarter had been effective.

  • The next cycle in the planning/control phase will involve Lorah carrying out the following activities:
  1. Correct observed deviations
  2. Improve future plans
  3. Make and implement new plans
  4. Increase synergy and diversity within the organization
  5. Undertake research to increase profitability.

Thus, with the controlling of the direction by comparing results with plan and correcting deviations and improving production factors, the district under her control will become profitable and effective.

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