Global competition that occurs along with advances in technology continue to significantly alter the scope of business and internal reporting requirements. Reduction in national trade barriers on an ongoing basis, a floating currency, sovereign risk, restrictions on sending funds across national borders, differences in national tax systems, the difference in interest rates and commodity prices and the effect of changing equity to assets, earnings , and the cost of capital is a variable that complicates management decisions. At the same time, developments such as the Internet, video conferencing, and electronic transfer change the economics of production, distribution, and financing. Global competition and rapid dissemination of information to support the limited national differences in management accounting practices.
business model is the big picture, and consists of the formulation, implementation and evaluation of long-term business plan of a company. It includes four main dimensions.
A. Identify the major factors relevant to the company’s progress in the future.
2. Formulate an adequate technique to predict future developments and analyze the company’s ability to adapt or take advantage of these developments
3. Develop data sources for menditkung strategic choices.
4. Certain choices translate into a series of specific actions.

Planning and management control is critical for the company, in this multinational company. However, the reduction in national trade barriers continuously, a floating currency, sovereign risk, restrictions on sending funds across national borders, differences in national tax systems, differences in the level of interest rates and commodity prices and the effect of changing equity to assets, earnings , and the cost of capital is a variable that complicates management decisions. And rapid global Persaingn penyebarn the limited information supports national differences in management accounting practices. Additional pressures include, among others, changes in markets and technologies, the growth of privatization, incentive costs, and performance as well as coordination of global operations through joint ventures and other strategic links.
Company in the conduct of management control requires a planning tool that can identify the relevant factors in the future, scanning the external and internal environment. The tool helps companies identify opportunities and challenges. One such tool is the WOTS-UP analysis regarding the strengths and weaknesses of the company relating to the company’s operating environment. Accountants can also help corporate planners to obtain useful data in strategic planning decisions.
Then, the decision to invest abroad is a very important element in the global strategy of a multinational company. Investment risk, followed by the foreign environment, complex and constantly changing. Formal planning is a must and is generally performed in a capital budgeting framework that compares the benefits and costs of the proposed investment yng. Differences in tax law, accounting system, the rate of inflation, the risk of nationalization, currency framework, market segmentation, restrictions on the transfer of retained earnings, and differences in language and culture adds to the complexity of elements that are rarely found in domestic environments. Adaptation (adjustment) by multinational companies for investment planning models have traditionally been carried out in three areas of measurement: (1) determine the relevant returns for multinational investments, (2) measure of cash flow expectations, and (3) calculate the cost of multinational capital.
A manager must determine the relevant rate of return on foreign investment opportunities mengalisis remedy. However, the relevant rate of return is a matter of perspective: a project or parent companies abroad. Returns from these two viewpoints may differ significantly because of several reasons: (1) restrictions on repatriation of profits by the government and capital, (2) license fee, royalt, and other payments which is the profit for the parent company but is a burden for the subsidiary, (3) differences in national inflation rate, and (4) changes in foreign exchange rates, and (5) differences in taxes. Financial managers need to meet multiple objectives by providing a response to investor groups and noninvestor in the organization and the environment. If siatu not promise the return of foreign investment that has risk-adjusted returns that value is obtained from local competitors, the parent company’s shareholders would be better to invest directly in local companies.
For managers of multinational companies, measuring the expected cash flows of a foreign investment is quite a challenge. Revenue estimates are based on projected sales and billing experience antipasti. Operations and local tax burden equally predictable. However, there are additional complexities that must be considered:
– Project cash flow versus the parent company
– The parent company’s cash flows related to financing
– Funding for subsidized
– Political risks
This process should also consider the impact of changes and fluctuations of the currency on expectations of return on foreign currency.
The main source of cash flow covers loans from the parent holding company, dividends, license fees, overhead expenses, royalties, transfer pricing for purchases from or sales to the parent company, and the estimated final value of the project. Measurement of cash flows requires an understanding of the differences in national accounting, repatriation policy of the government, inflation, and potential future exchange rate and tax differences.
Differences in accounting principle be relevant if the fund managers rely on the pro forma financial statements with a local basis when estimating the future cash flows. If the rules of measurement used to compile these accounts differ from the rules used in the parent company’s country of origin, they can lead to differences in the estimated cash flows.
Preparation of the world’s information system of a company is crucial in supporting the corporate strategy, including the planning process. Circumstances of geography, formal information communication generally replace the personal contact between the local operations manager with the central office manager. Developments in information technology should reduce, but will not completely eliminate this hassle. The design of the system affect the success achieved:
A. – The spread of low to high centrality, used by smaller organizations with limited international business operations and information systems that dominate the domestic needs.
2. – Deployment of a centralized high-low, are used by multinational companies with operations in different geographical areas vary.
3. – Deployment of a high high centrality, run by the company with strategic alliances throughout the world.

Management control system is basically a system that is used by management to build the future of the organization. to build the future of the organization, need to be determined in advance in the business of what the organization will try. Jabawan to that question is the mission of the organization so the organization’s mission is the chosen track to bring the organization realize its future. Expected to dilaksanakannnya management system structure will create a company vision and mission of the organization and then implement them.
The problems that arise in the implementation of the structure of management control systems that can be identified right now is the weakness lies in the structure and process weaknesses. Management control systems can not realize the purpose of the system possibly because its structure does not fit with the environment facing the company, may also occur purpose of management control system is not achieved due to the weak management control system.
Impacts that arise because the company does not impose a structure of management control systems, among others, enterprise organizations will be difficult facing radical changes sharply, the constant, rapid, simultaneous so that the organization will not work and can not make a variety of planning, organizational objectives can not predict the future
Structures necessary to deal with the management control system starts from the observation and pengindetifikasian spur change (change drivers) that affect the environmental characteristics that will enter the company.) Structural components of the system is closely related to each other that together are used to realize the goal of system as claimed Mulyadi, Johny (2001: 8) that the management control structure consists of three components, namely the organizational structure, network information and reward systems. Rerangka designing the structure of designing management control systems use the contingency approach to human resource approach and leverage.
Issues of management control system structure is important to study because it gives hope that the ability for management to map out a comprehensive enterprise business environment that will be entered by corporate organizations in the future, make changes quickly map the trip according to the changing demands that are expected to occur and multiply enterprises as wealth creators institution, so the company has an enormous ability to always make the necessary changes.
Management accounting information for management to prepare a number of companies ranging from data collection to reporting of liquidity and operational forecasts of the various types of expenditure weights. Environmental factors also affect the use of internally generated information. For example, the influence of culture. Cultural, uncomfortable with uncertainty and ambiguity tend to be more ready to accept information technology than those who are not comfortable. Translational factors also affect the use of information generated. FAS No. 52 requires the use of temporal translation method when doing a translation of the accounts of foreign affiliates located in high-affiliated environment. However, the provision does not meet the information needs of companies operating in countries with high inflation because it tends to cause distortion of reality through:
– Assess the rate is more or less revenue and expenses
– Report translation gains or losses that are difficult to interpret large
– Distorts the intertemporal comparison of performance.
Why do we need to pay attention to this distortion?
– The traditional reporting system has a bad influence on the behavior of salespeople
Trandisional-reporting system does not provide motivation for salespeople to memfakturkan and send the first of the month
– System is manipulating the results
For a control system for a multinational company to function properly, the system typically used by many multinational companies to control its foreign operations in many respects much the same as those used domestically. Parts of the system are generally shipped out include financial control and budget as well as the tendency to apply the same standard that was developed to evaluate the domestic operations.
Once the strategic goals and capital budgets are created, the management focus on short-term planning. Short-term planning includes making the operating budget or profit plan when needed in the organization. Plan earnings are the basis for forecasting cash management, operating decisions, and management compensation schemes. Plan of the company income statements of foreign affiliates is first converted according to accounting principles adopted in the parent company’s country of origin and translated from local currencies into the currency of the parent.
Structure of Management Control Systems
The structure of management control systems are the components associated with the other together form a system. Each component in the structure has a specific function to achieve the objectives of the system. A healthy structure is the structure of the system that each of the components designed in accordance with the demands of the business environment to be treated the system.
In building the organizational structure is built based on the functions required of the organization is concerned, if an organization built for the demanding business environment into decision-making speed in which the customer in control of business and the hiring knowlegde workes, the organizational structure that fits with the organization is a function that has characteristics, quick response, flexible and innovative.
The structure of management control systems as required by corporate organizations which require all companies memasukil environment has more power to compete. In order to be selected by customer, product and services companies need to have the advantage will not last long, because competitors will find ways to produce the best value for the customer. Therefore, to survive and thrive in a competitive business environment, companies are required to continuously reinvent a competitive advantage.
To be able to survive and grow in a competitive business environment, organizations are not enough companies are only able to be creators of wealth (wealth-creating institution) however, are required to have capabilities far more than that, the company claimed to be a proliferation of institutional wealth (wealth-multiplying institution) to build the company’s ability as a multiple of the multiplication of wealth, management needs to take advantage of the management system specifically designed for the purpose of multiplying wealth.
Effective control system is a system that is directed to two causes, the need for personnel in the control of the inability to achieve organizational goals through the expected behavior, the inability of personnel in the dtingkatkan can achieve through education and training, and provision of adequate technology, the inability of personnel to achieve goals organization through behavior that is expected to be reduced or eliminated through:
A. Formulation of mission, vision, basic beliefs and basic values of the organization are clear.
2. Communicating the mission, vision, core beliefs and values fundamental to the organization of company personnel through personal behaviors of organizational leaders and operational behavior.
Through the internalization process, mission, vision, basic beliefs and basic values can be embedded in the organization of all personnel within a shared mission, shared vision, shared beliefs and shared values.Shared mission, shared vision, shared values and shared belief makes people powerless to control behavior as expected in achieving the goals set.
3. Management control system also provides a variety of systems to implement the planning and implementation of the plan. Through the international system of management control, the main activities to make the whole enterprise as an institution has a wealth creator can be implemented in a structured, coordinated, scheduled and integrated so that the achievement of promising companies increasing wealth in sufficient quantity

Process Structure and Management Control Systems of management control system consists of the following six main stages:
Strategy Formulation
Stage of strategy formulation is a crucial stage survival and growth of the organization. In this stage was observed on the macro trends of environmental change and industrial environments. Based on the observation of these trends do formulation, mission, vision, purpose, basic beliefs, and values of the organization.
Strategic Planning
After formulating corporate strategy chosen to realize the vision and mission through the organization, the strategy is then needed to be implemented. The first step is to carry out strategic planning, in this step strategy has been formulated in the balance sheet is translated into a comprehensive strategic and coherent, which consists of three components: strategic goals, targets, strategic initiatives
Drafting Program
Preparation of the program is a long-term planning process to define the selected strategic initiatives to achieve strategic objectives. Implementation of strategic initiatives requires systematic planning steps to be taken by the company in the long run to the front along with the estimated resources required for the program, a long-term plan contains strategic measures chosen to achieve certain strategic objectives together with the estimated resources needed .
Preparation of the program is a long-term planning process to define the selected strategic initiatives to achieve strategic objectives. Implementation of strategic initiatives requires systematic planning steps to be taken by the company in the long run to the front along with the estimated resources required to execute these steps. preparation programs produce the program, a long-term plan containing measures chosen to achieve strategic goals and their specific strategic resources necessary to estimate it.
Budgeting is the process of planning short-term (usually for a period of one year) that lists the steps taken by the company in implementing a portion of the program in a particular program budgeting translated into action plans to be implemented in the fiscal year, the show manager and employee responsible for and allocated resources to carry out these activities.
Once the comprehensive plan is completed, the next step is the implementation of the plan. In the implementation phase of this plan, management and employees to implement the plan contained in the budget to the actual activity. Because the budget is part of the program, and the program is a translation of strategic objectives chosen as the translation strategy is formulated, then the implementation plan, management and employees must always be aware of close links between implementation, budgets, programs, initiatives, strategic objectives and strategies. This realization will maintain detailed steps are implemented in the implementation phase remains in rerangka chosen to realize the vision of the organization.
Implementation of the plan requires monitoring, the results of each step is planned to be measured to require feedback for monitoring the implementation of budgets, programs and strategic initiatives. The results of the implementation plan is also used to provide information for administrators on how far the target has been achieved, strategic objectives have been successfully realized and the organization’s vision can be achieved.

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