Planning and control method used Currently, the main method of central control that can be used to drive profit margin improvement is the budget system in each division. The budgeting method used is to take the previous year's figures and simply increment them by estimates of growth in the market that will occur over the next year. These growth estimates are set by the financial managers at group level. Errors in setting budgets Divisional managers complain that budgets are not set properly by head office as they include errors and targets set are too high so not attainable. Total variances are used to control performance of divisional managers. Managers complain that despite all efforts made the targets are still not attainable so they are interested to improve the variance report.