ACCG828: Management Control Systems - BOQ Operations Case Study

This case study examines the operations of the Bank of Queensland (BOQ), analyzing the significance of technology as a contingent factor, its influence on controls like customer service, capital management, and revenue generation. It explores the impact of technology on direct and indirect costs and identifies BOQ's strategic approach as a prospector strategy, emphasizing detailed risk management. The analysis considers environmental uncertainty, organizational structure, and size as contingent factors, highlighting their impact on the bank's operations. The study references relevant literature to support its findings, providing a comprehensive overview of the factors influencing BOQ's management control systems and performance.

Operations of Bank of
Queensland

Significance of technology as a
contingent factor:
 Technology plays a very significant
role in the contingency operations
in multinational companies like
Queensland Bank which is one of
the leading banks in Australia.
 The bank markets several products
which includes both asset products
and liability products.

Controls likely to be be influenced
 The use of technology would affect several controls.
 The controls which would be influenced by the application of
technology would be customer services, capital management and
revenue generation.
 The bank can generate immense revenue by serving customers on its
digital platforms.

Extent to which technology may
influence direct and indirect costs
 Use of technology have direct impact on the direct and indirect costs.

Strategy as a contingent factor
 Appropriate strategic approach taken by Queensland Bank is that of
prospector strategy.
 The management of the bank also conducts a detailed risk
management before launching new products.
 The prospector’s strategy which the management of Queensland Bank
uses to decision making have direct influences on the direct and
indirect cost the company.

Environmental certainty or
uncertainty as a contingent factor
 Environmental certainty or uncertainty would have direct impact on the
Queensland Bank.
 The challenges like political hostilities and economic turbulence have
negative impacts on the business generation of the bank.
 Environmental uncertainties are important contingent factors. This is
because they have negative influences on the business of the bank

Organisational structure of
Queensland Bank as a contingent
factor
 The organizational structure of the Queensland Bank is a tall structure
with the CEO at its helm.
 The present interim CEO and COO of the bank is Anthony Rose while
Matt Baxby is the current CFO.

Size as a contingent factor
 As far as the size of the Queensland Bank is concerned, it can pointed
out that the bank is multinational bank with operations both within
Australia and in foreign nations.
 Size is a contingent factor because larger size means more resources to
counteract market challenges. Thus, size is an important contingent
factor.

References
 Boq.com.au. (2019). Retrieved from https://www.boq.com.au/content/dam/boq/files/shareholder-centre
/financial-results/2018/FY2018_Annual_Report.pdf
 Chenhall, R. H. (2003). Management control systems design within its organizational context: findings from
contingency-based research and directions for the future. Accounting, organizations and society, 28(2-3), 127-
168.
 Fuentelsaz, L., Maicas, J. P., & Montero, J. (2018). Entrepreneurs and innovation: The contingent role of
institutional factors. International Small Business Journal, 36(6), 686-711.
 Malmi, T., & Brown, D. A. (2008). Management control systems as a package—Opportunities, challenges and
research directions. Management accounting research, 19(4), 287-300.
 Ong, T. S., Teh, B. H., & Lee, A. S. (2019). Contingent Factors and Sustainable Performance Measurement (SPM)
Practices of Malaysian Electronics and Electrical Companies. Sustainability, 11(4), 1058.
 Pavlatos, O. (2018). Strategic cost management, contingent factors and performance in services. Journal of
Accounting and Management Information Systems, 17(2), 215-233.
 Peters, L. D., Pressey, A. D., & Johnston, W. J. (2016). Contingent factors affecting network learning. Journal of
Business Research, 69(7), 2507-2515.

Thank You