The Competitive Worlds Growth Of A Business - 1456 Words

INTRODUCTION In the competitive world, growth of a business is based on its ability to generate revenue not just from the local market but also searching for opportunities in the international market. The similar can be magnified for a country, where some economies as whole are credit to International demand till a great extent. In case of few countries, namely Japan and South Korea, that initially functioned as Protectionist, looking after the domestic market, open their markets after WWII and adapted export driven attitude, since being endogenous can’t work well in small populated countries. South Korea proved to have a good model of how a low income country became high income country. When countries around the world where looking for Import Substitutes Korea took up the opportunity and created attractive environment for foreign investors. Japan, who were already leading the export market, has to be credited till a great extent for opening Korean market. The Japanese government `off shored for labour-intensive industries to more to Korea and continue to export to third countries, further Japan also allowed the Koreans to develop their own links with the US market at the time when they started approaching new markets (RJ Castley, 1995) With very similar functions and practices going on the both country few indicators like GDP Growth Rate, Export (percent of GDP) and Inflation will help point out the similarity and difference in last few years: GDP GROWTH (%) Figure 1Show MoreRelatedThe External Competitive Environment at Lenova1593 Words   |  6 Pagesespecially when the industry is extremely competitive or volatile. Industry evolution brings change in sources and nature of competition (Porter 1979). This essay will analyse the external competitive environment and critically evaluate the strategies employed by Lenovo, a Chinese technological corporation, in dealing with the overall declining trend of the PC (personal computer) market. Case study overview Recent years saw the worldwide PC market growth rate undergoing a drastic plummet (ArthurRead MoreVodafone: Out of Many, One1207 Words   |  5 PagesVodafones Vision Statement Our vision is to be the worlds mobile communication leader - enriching customers lives, helping individuals, business and communities be more connected in a mobile world. Executive Summary Vodafone Group, PLC is the worlds largest cell phone provider with 150 million customers and operations in 16 countries and minority stakes in companies in 10 other countries. Its first mover advantage and acquisition strategy along with its ability to continuously transformRead MoreAnalysis Of Honeywell s Strategic Planning1629 Words   |  7 Pagesincrease business and revenues through robust strategic planning. In an effort to continue that growth globally and maintain a strong competitive advantage, the CEO introduced an aggressive strategy, to align the organizations acquisitions with the current business model and those areas of the market that the organization is presently operates in. For that reason, the business has been able to grow leaps and bounds in the past 14 years (Inc, 2016). Over the next five years the business is focusingRead MoreGlobal Online Jewelry Market–Focus on the U.S., China and India: (2013-2018) - Daedal Research1310 Words   |  6 Pagesand Trends (2013-2018)† provides an in-depth analysis of the major jewelry markets like the U.S., China and India. It also accesses the key opportunities and underlying trends in the market and outlines the factors that are and will be driving the growth of the industry in the forecasted period (2013-18). Further, key players of the online jewelry industry like Blue Nile Inc., Tiffany Co., Signet Jewelers Limited, Zale Corporation, Jewelry Television, Ross-Simons and Bidz.com are profiled. GeographicalRead MoreOrganizing Function of Management Essay1016 Words   |  5 Pagesinteract in various business environments. Management uses organizing activities to allocate resources, define responsibility, establish expectations, and group employees. â€Å"At high-tech firms such as Google that rely on employee skills, knowledge, and creativity to remain competitive, the importance of people is evident as well† (Bate Snell,  ¶ 1, 2009). Human Resources Management at Google Human resources management is a formal system used to manage people in a business environment (Bate Read MoreNestle’s Sustainable Growth in Mature Market1512 Words   |  7 PagesNestle’s sustainable growth in mature market The company establishment Nestle was first founded by Henri Neslte in the 1860s by developing and producing food products for babies who could not adapt mother’s milk. Following the success in baby food products, Henri incorporated with an Anglo-Swiss condensed milk company to develop dairy products, especially for government supply in World War I. High sensitive and quick responding to the demand of consumer, Nestle continued to create and develop newRead MoreFedEx’s Value Creation Frontier and Building Blocks of Competitive Advantage1616 Words   |  7 PagesFedEx’s Value Creation Frontier and Building Blocks of Competitive Advantage A business model establishes how value is created for customers and a firm’s strategy to appropriate returns derived from that value. Typically, a business model identifies the firm’s value propositions for customers, partners and stakeholders, the processes and resources required to deliver these value propositions, and a profit formula. From a marketing theory perspective, customer value refers to the customer’s perceptionsRead MoreMajor Forces That Are Leading International Firms Essay743 Words   |  3 Pagescommunication and an increase flow of ideas. Through the internet and networks small companies can compete globally. Markets Companies use foreign countries to establish a business to avoid having their competition take their business. With the majority of the population being in foreign countries, outsourcing helps to generate growth. Cost Management utilizes lower cost by moving production lines to foreign countries because the labor is cheaper, and can also lower other parts of a company value chainRead MoreThe Curse Of The Mogul Essay1401 Words   |  6 Pagesitself in the center of the Internet culture, as the world’s leading search engine, Google is single handedly changing computing landscape. Jonathan Knee, Bruce Greenwald, and Ava Seave of Columbia University dismantle the myths stimulated in media economics. The growth of the unflattering results of The Curse of the Mogul argues, that the advantages and benefits are an illusion and media companies are unsuccessful in grasping the concept of competitive advantage. In Googled: The End of the World as WeRead MoreEssay about Cpw Cereal Case Study1390 Words   |  6 Pagesbrings the expertise and competence of upstream, including production and RD. The joint venture will profit a lot from the core competence of GM in upstream of the value chain. On the other side, the other partner of joint venture Nestle is the world’s largest global food and beverage company in terms of sale. The company is located in Europe acting on global basis. It has a very large product portfolio and a very wide spread sales marketing organization worldwide with 406 subsidiaries. CPW can

Ethics in Management Accounting - 2322 Words

ASSIGNMENT ON ASSURANCE OF LEARNING – ETHICS IN MANAGEMENT ACCOUNTING (CMA) Awoluyi Adekunle, Matric Number: 201403007 JUNE 29, 2015 MEMBA 3 LBS, Lagos AWOLUYI ADEKUNLE Matric Number: 201403007 Introduction The source of cost management ethical problems in any organization can be one or more of the following; 1. 2. 3. 4. Organisation’s management expectation Vs. professional ethics Personal desire for recognition / and promotion within the company Strife for quick money or cash Personal commitment or colleagues commitments In view of this, certain steps are required to be taken to ensure that strict adherence to business ethics is promoted within every organization. Several professional bodies have tried†¦show more content†¦It is important to note that all the information used by Wessling was deduced from the information generated by the Accounts department. Which reflects that the department have the required information to embark on adequate analysis for decision making in the company. Information gathered from the account’s department analysis was not sufficient enough to have made the decision made by Paul Hanson. Product 103 have more market share (10%) than any other product the company produces, a well-informed accountant would have taken the pain to further analyse and discuss the cost elements with the respective department to ensure that the organization either maintains its position in the market or improve it while remaining profitable. The effect of discontinuing Product 103 includes; 1. Loss of job to most factory workers – the possibility of Hanson to redeploy workers on product 103 to other lines maybe almost impossible, especially if the production line is saturated. AWOLUYI ADEKUNLE Matric Number: 201403007 2. Loss of Contribution Margin – the contribution margin of Product 103 would have also being lost and recovery of apportioned fixed cost would have no longer been feasible based on the discontinuation of the product. Generation Evaluation of Various Alternatives to address the ethical challenges More importantly in Hanson, the company needs to; 1. Engage a competent and well-seasoned cost accountant who canShow MoreRelatedManagement Accounting : Code Of Ethics1588 Words   |  7 PagesManagement Accountants’ Code of Ethics A code of ethics is necessary for the success of any type of business whether it be a professional service organization such as a law firm or an accounting firm, a manufacturing company such as Chrysler, Toyota, Apple or Microsoft, or a retail company such as Walmart or Target. Within each type of organization lie various types of services that are governed or controlled by a specific set of standards and code of ethics. Each set of standards and code of ethicsRead MoreAccounting Management: Cost Classification and Ethics2396 Words   |  10 PagesTASK 1: Cost Classification and Ethics The Sorrel Pharmaceuticals Corporation manufactures a variety of drugs that are marketed internationally. Inventories on May 31 and June 30 were as follows: May 31 June 30 Materials Inventory $354,100 $327,400 Work in Process Inventory 112,600 116,400 Finished Goods Inventory 138,500 142,800 Purchases of materials for June were $142,600. Direct labor costs were incurred and computed on the basis of 27,000 hours at $8 per hour. Actual overhead costs incurredRead MoreThe Ethical Framework Of Accounting897 Words   |  4 PagesBusinesses, investors, creditors rely on accounting ethics. The accounting profession requires honesty, consistency with industry standards, and compliance with laws and regulations. The ethics increase the responsibility and integrity of accounting professionals, and public trust. The ethical requirements influence the management behavior and decision-making. The financial scandal of Enron and Arthur Anderson demonstrates the failure of fundamental ethical framework, such as off-balance sheet transactionsRead MoreThe Effect Of Professional Ethics788 Words   |  4 PagesThe Effect of Professional Ethics in U.S. Accounting Businesses, investors, creditors rely on accounting ethics. The accounting profession requires honesty, consistency with industry standards, and compliance with laws and regulations. The ethics increase the responsibility and integrity of accounting professionals, and public trust. Ethical requirements influence the management behavior and decision-making. The financial scandal of Enron and Arthur Anderson demonstrates the failure of fundamentalRead MoreRole Of Corporate Ethics On Financial Performance945 Words   |  4 PagesAbstract. The article reviewed was The Role of Corporate Value Clusters in Ethics, Social Responsibility, and Performance: A Study of Financial Professionals and Implications for the Financial Meltdown. The key of the abstract is to demonstrate the influence of corporate ethics on financial performance. The financial meltdown negatively influenced top management mindset regarding professional ethics (p. 15). Introduction. The authors study 2008 collapse of financial system to analyze the link betweenRead MoreEthical Issues Of The Managerial Accounting Profession1186 Words   |  5 Pagesto its complexity in today s business world it may generates sort of excesses that can negatively affect the business environment as well as the social life. Therefore, it becomes necessary to stress on the ethics and morals that should be prevalent in the business community. The term ethics in the business environment expresses the expected attitude of the individuals in organizations that carry out certain activities and services. Clearly, today’s business environment has obvious ethical issuesRead MoreEthical Issues Faced by the Accountancy Profession Essay1747 Words   |  7 PagesEthics plays an essential and integral part in the accountancy profession. Professional conduct plays an important role in establishing public trust in financial reporting and business practise. Yet this can and has come under threat when clients and employees are exposed to the risk of fraud when accounting ethics are not adhered to. Codes of ethics are adopted to ensure the reliability, comparability and integrity of financial statements. Ethical standards exist to safeguard the fundamental principlesRead MoreWhy Ethics Are Important to Auditors1355 Words   |  6 PagesA qualified person, who inspects the accounting records and the practices of an organization, is the basic definition of a Company Auditor. In financial accounting, an audit is categorized by the self-governing evaluation of the justice by which a companys financial statements are presented and prepared by and to its supervisor. This task is largely performed by the trained, experienced, self-governed and intent persons, known as accountants or auditors. Auditors are on the whole very informedRead MoreFinancial Reporting Between The International Financial Index Standards ( Ifrs ) And U.s. Standards890 Words   |  4 Pagesof ethics and moral duties of the company top management. The researchers studied the financial scandals and the recent financial crisis to demonstrate the gap between the market processes and accounting standards. The IFRS and U.S. GAAP differ in a contrary nature of accounting standards. GAAP is considered as rule-based standards, while IFRS viewed as a principle-based. Therefore, the professional judgment on financial improprieties is highly important (p. 479). Moreover, the code of ethics andRead MoreEthical Concerns in Corporate Finance: A Closer Look at Earnings Management1640 Words   |  7 Pagesyears, the ethics of finance has been a concern in the corporate world. With the flexible accounting standards under the Generally Accepted Accounting Principles (GAAP) and International Accounting Standards (IAS), there are many grey areas of what is, and is not, ethical. Earnings management falls in this grey area. Earnings management is the term used to describe the process of manipulating earnings of the firm to achieve a target predetermined by management. The flexibility of accounting standards

Manufacturing of Business Product

Question: Discuss about the Report for Manufacturing of Business Product. Answer: 1. Fixed manufacturing overheads refer to those costs which are indirect in nature but related to the manufacturing of the product. These are typically fixed in nature and hence do not vary as per the volume of the output produced. In the event that output is lesser, then the fixed manufacturing cost allocated to each item would increase. However, since these are essentially fixed, hence they are not related to the production activity actually been undertaken (Drury, 2008). There are essentially two methods to compute the income statement i.e. Absorption costing and variable costing. In case of absorption costing, the fixed manufacturing overheads are included in the product cost and not the period cost. Hence, the fixed manufacturing overheads are computed by dividing the total fixed manufacturing overheads by the total production level of the product. Thus, the contribution margin is computed by deduction of fixed manufacturing overheads. In case the production is higher than the demand, then this method ensures that some of the fixed manufacturing overheads is transferred to the inventory cost and deferred to the next period and hence provide a boost to the profits of the company (Bhimani et. al., 2008). In case of variable costing, the fixed manufacturing overheads are not included in the product cost but as period cost. As a result, the per unit fixed manufacturing overheads does not need to be computed. Also, the complete fixed manufacturing overheads would be accounted for in the income statement and no component would be deferred to the future through the medium of inventories. Hence, typically this would lead to a lower profit figure as compared with the absorption costing since all the fixed manufacturing overheads would be accounted for in the income statement (Seal, Garrison Noreen, 2012). Maria indeed has vested interest in the given case which is why she is insisting on overproducing the product so as to cause a huge inventory and by adhering to the absorption costing, she would shift a host of the fixed manufacturing costs in the future through huge inventory. Clearly, this is incorrect and hence the absorption costing must not be used for external reporting (Petty et. al., 2015). External Reporting With regards to reporting to external stakeholders, it is recommended that the variable costing would be the preferred method as this ensures that an accurate picture is presented to the shareholders with regards to the performance of the company and the various costs already incurred (Parrino Kidwell, 2011). Internal Reporting With regards to internal reporting the firm has got a choice between absorption costing and variable costing. While taking decisions regarding pricing, the absorption costing is the most suitable since it takes into consideration all the costs actually involved in production and hence lead to better accuracy with regards to costing of an individual product. However, in cases of evaluating an external contracts in case of idle demands, it is recommended that the company deploys the variable costing into account as the fixed manufacturing cost is not an incremental cost and hence quote to external parties should not include this (Bhimani et. al., 2008). 2. It is apparent that there are three market segments of Cinto namely General Supermarket, Pharmacy Chains and Pharmacist owned single stores. Gross margin = (Gross Profit/Total Revenue) *100 Gross margin (General Supermarket) = (108000/3708000)*100 = 2.91% Gross margin (Pharmacy Chains) = (150000/3150000)*100 = 4.76% Gross margin (Pharmacist owned single stores) = (180000/1980000)*100 = 9.09% The cost per activity for the given activities is summarised in the table below (Brigham Ehrhardt, 2013). ACTIVITY LEVEL Activity General Supermarket Pharmacy Chains Pharmacist owned single store Total activity Total cost ($) Cost driver rates ($) Orders Processed (Number) 140 360 1500 2000 80000 40 Line items orders (Number) 1960 4320 15000 21280 63840 3 Store Deliveries made (Number) 120 360 1000 1480 71000 47.97 Cartons shipped to stores (Number) 36000 24000 16000 76000 76000 1 Shelf Stocking (Hours) 360 180 100 640 10240 16 Cost driver rates = Total cost/Total activity level The allocation of the other operating costs based on the above cost driver rates is shown below (Drury, 2008). Activity General Supermarket Cost ($) Pharmacy Chains Cost ($) Pharmacist owned single store Cost ($) Orders Processed (Number) 5600 14400 60000 Line items orders (Number) 5880 12960 45000 Store Deliveries made (Number) 5,756.76 17,270.27 47,972.97 Cartons shipped to stores (Number) 36000 24000 16000 Shelf Stocking (Hours) 5760 2880 1600 Total operating costs ($) 58,996.76 71,510.27 170,572.97 Operating Profit (General Supermarket) = 108000 58996.76 = $ 49,003.24 Operating profit as a % of revenue (General Supermarket) = (49,003.24/3708000)*100 = 1.32% Operating Profit (Pharmacy Chains) = 150000 71510.27 = $ 74,489.73 Operating profit as a % of revenue (Pharmacy Chains) = (74,489.73/3150000)*100 = 2.36% Operating Profit (Pharmacist owned single store) = 180000 170572.97= $9,427.03 Operating profit as a % of revenue (Pharmacist owned single store) = (9427.03/1980000) *100 = 0.48% From the above calculations, it is apparent unlike the gross profit margin which is the highest for pharmacist owned single stores, the operating profit margin is the highest for pharmacy chains and lowest for the pharmacist owned single stores. Thus, it is imperative that the overhead costs must be allocated correctly so as to identify the actual profitability of the various segments (Brealey,Myers Allen, 2008). Based on activity based costing, profitability margins are in the following order. Pharmacy chains General Supermarkets Pharmacist owned single stores. 3. The manager of Hair Suite III would be the most effective as he/she is displaying the participative approach of management which enables the team to arrive at a sustainable and mutually agreeable solution. This is because the manager put forward the problem before the stylists and has worked out as a solution which resolves the problem without disturbing their current job timings or quality. In case of Hair Suite 1, the manager follows a authoritative management style where it is recommended that the time per customer would be reduced and also the breaks without having any discussion with the stylists as to whether their work would be adversely impacted by such a schedule. Similarly, in case of Hair Suite II, the manager does not discuss the problem or ask for a feedback on a suggestion but goes and straight away directs that the stylists need to work one hour more on a daily basis (Bhimani et. al., 2008). The stylists would be unhappy with the directive given by managers of Suite I and Suite II. This would be because there has been no discussion with the core problem and the likely solutions but instead a particular solution has been forced upon the stylists without taking their inputs and feasibility of the idea considering the impact of customer quality and stylists performance. If the stylists are unhappy, it may lead to lower productivity from the stylists and also customer satisfaction may be adversely impacted. The motivation levels of stylists may be impacted and hence they can potentially quit the saloon and look for an alternate location. Additionally, there could be increased disputes between the stylists and also the respective managers which would be counter-productive for all the possible stakeholders. In case the stylists are not willing to share their suite, then the potential alternative solutions could be as follows. The appointment timings can be customised especially for regular customers as the time required is typically known. Further, some rationalisation as per the services offered may be done which could accommodate incremental customer atleast on some days. Introduction of the rule that in one month, on one of the holidays, each person would have be serve a half day which could bring in incremental revenue. Providing flexibility to stylists that they should work overtime on some days in the week instead of everyday. The concept of stretch target can be applied in case of manager of Suite 1. This is because now a difficult target of servicing eight customers in the daily shift has been provided to each stylist and they are expected to meet this in order to successfully discharge their obligations (Seal, Garrison Noreen, 2012). This is different from the regular target of serving seven customers in a daily shift. It may be likely that due ot the ongoing nature of the stretch target, the customer service may be adversely impacted and also the stylist may feel fatigued due to a break of only five minutes between the sittings. Thus, it is highly likely that the stretched target given to the stylists cannot be met on a daily basis without compromising the quality and also increasing the potential of burn out on the part of the stylists. References Bhimani, A, Horngren, CT, Datar, SM Foster, G 2008, Management and Cost Accounting 4th eds., Prentice Hall/Financial Times, Harlow Brealey, R, Myers, S Allen, F 2008, Principles of Corporate Finance, 9th eds., McGraw Hill Publications, New York Brigham, EF Ehrhardt, MC 2013. Financial Management: Theory Practice, 14th eds., South-Western College Publications, New York Drury, C 2008, Management and Cost Accounting, 7th eds., Thomson Learning, London Parrino, R Kidwell, D 2011, Fundamentals of Corporate Finance, 3rd eds., Wiley Publications, London Petty, JW, Titman, S, Keown, AJ, Martin, P, Martin JD Burrow, M 2015, Financial Management: Principles and Applications, 6th eds., Pearson Australia, Sydney Seal, WB, Garrison, RH and Noreen, EW 2012, Management Accounting, 4th eds., McGraw -Hill Higher Education, Maidenhead