The design of a CMS is influenced by the

• organizational form through, for example, laws that determine who within the organization is en¬ titled to be a decision maker.

• organizational structure because it

>- determines how authority and responsibility are distributed in an organization.

>- indicates who is accountable, what they are accountable for, and the nature of informa¬ tion needed by each decision maker.

• organizational culture because it determines

>- how people interact with each other in the organization.

>- the extent to which individuals take author¬ ity and assume responsibility for organiza¬ tional outcomes.

• organizational mission.

• organizational core competencies.

• external environment because it determines the nature and extent of competitive pressures bearing on the organization.

industry’s competitive dimensions and the bases on which organizations compete.

• organizational strategies that influence the organizational cost structure.

managerial preferences in responding to competitive pressures. LO.1