Adapting Planning and Control Systems to support internationalization: Evidence from SCM Group

In the contemporary competitive context, strongly marked by instability and discontinuity, the key variables to be controlled are increasingly numerous and constantly changing. A primary condition for companies operating in this context is possessing an adequate planning and control system capable of supporting the managerial decision-making process and guiding the firm toward its predetermined objectives. This necessity is amplified for multinational enterprises that must manage the tension between global integration and local responsiveness. This thesis conducts an empirical investigation into how the planning and control system of SCM Group, a leading Italian multinational enterprise, has been adapted to effectively support its profound internationalization process. Through in-depth qualitative interviews with two key members of the company's controlling department, the study analyzes the operational design and organizational mechanisms of the planning and control system in such multinational company. The findings reveal that SCM Group manages the tension between standardization and adaptation through three integrated strategies: (1) by establishing a "single version of the truth" via an integrated technological toolkit (ERP, CPM, and the custom FLASH report); (2), by adopting a matrix control structure where the local controller operates with a dual reporting line, acting as both a local business partner and a corporate rule guardian, thus enabling a powerful global community of practice; and (3) by employing a structured, iterative budgeting cycle that effectively blends top-down strategic guidelines with bottom-up operational reality through a data-driven negotiation process. This study contributes to the management accounting literature by offering concrete evidence of how a mid-sized global company utilizes organizational design and reporting rituals to achieve strategic alignment and managerial control across a complex international network.