Final answer:
Management control systems, such as performance measurement, financial controls, and information systems, are required to implement a differentiation strategy in business.
Step-by-step explanation:
When implementing a differentiation strategy, management control systems play a crucial role in ensuring its success. These control systems help in monitoring and managing the various activities that contribute to the differentiation strategy. Some key management control systems that are required to implement a differentiation strategy include:
- Performance Measurement: This system helps in measuring and evaluating the performance of different units and departments to ensure they are aligned with the differentiation strategy. It includes metrics such as customer satisfaction, product quality, and innovation.
- Financial Controls: Financial controls are essential to allocate and manage resources effectively. They ensure that adequate funds are allocated to support activities related to differentiation, such as research and development, marketing, and product design.
- Information Systems: Information systems provide data and information required for decision-making and monitoring the differentiation strategy. They help in tracking customer preferences, market trends, and competitor activities, which are crucial for making strategic decisions.