by EssayRoyal, Nov. 12, 2019, 4:37 p.m.
Discuss the five key forces to consider when analyzing an industry. How do these forces impact the balanced scorecard?
Analysis of an industry or market oftenly entails an exploration of the weaknesses, profitability the attractiveness and the intensity of competition in the industry. The Porter's Five Forces Model is oftenly used for the analysis of the above-mentioned factors. The Balanced Scorecard, on the other hand, takes into consideration the learning measures, the customer and learning measures in addition to the financial measures. The balanced scorecard is a performance measurement tool used to pinpoint and improve the various aspects of internal business functions. This paper focuses on Porter's five key ...
by EssayRoyal, Nov. 10, 2019, 1:09 p.m.
“Strategy, plans, and budgets are unrelated to one another.” Do you agree? Explain. Explain how the manager’s choice of the type of responsibility center (cost, revenue, profit, or investment) affects the behavior of other employees.
Business plans, strategies, and budgets are essential elements of organizational success. The three elements are used concurrently and effectively to serve the purpose of the organization. Therefore, the statement that strategies, plans, and budgets are unrelated is disagreeable. This paper intends to explain the reason for disagreeing with the statement. The paper further explains how the manager’s choice of the type of responsibility center affects the behavior of employees.
Lee (2016) noted that a strategy is a plan of action taken by the managers of a company in order to ...
by EssayRoyal, Nov. 9, 2019, 12:02 p.m.
“Companies should focus on financial measures of quality because these are the only measures of quality that can be linked to bottom-line performance.” Do you agree? Explain. How are financial measures and quality related? What other factors should be considered?
Performance measurement is a crucial aspect of any company. For a very long time, companies have used financial measures such as profits and liquidation to assess their success. However, the tradition cost accounting measures provide limited information that can support company quality. Successful measurement of performance in an organization should therefore entail steady measurement of improvements by the customers as well as the results delivered to the shareholders and the stakeholders (Darwish & Potocnik, 2016). In addition to measuring, other measures of performance include defining and understanding the metrics, the ...
by EssayRoyal, Nov. 8, 2019, 11:51 a.m.
“A customer-profitability profile highlights those customers a company should drop to improve profitability.” Do you agree? Explain. Are all customers important? What other options does the organization have instead of “dropping” the customer?
Organizations rank their customers based on their revenue contribution, the frequency of purchases and other factors like creditworthiness. According to Cokins (2015), a customer-profitability profile is a rank used as a management tool to improve customer satisfaction as the operating income. Therefore, it is disagreeable that customer-profitability profile highlights those customers a company should drop to improve profitability. On the contrary, the profile enables the companies to monitor the frequent and loyal customers to make them happy in various ways. For instance, some companies have free usage of luxury hotel ...
by EssayRoyal, Nov. 7, 2019, 3:15 p.m.
The controller of a retail company has just had a $50,000 request to implement an ABC system quickly turned down. A senior VP, in rejecting the request, noted, “Given a choice, I will always prefer a $50,000 investment in improving things a customer sees or experiences, such as our shelves or store layout. How does a customer benefit by our spending $50,000 on a supposedly better accounting system?”. How would you respond to the VP? What value does ABC provide to customers, if any? What are “selling” point that should be noted about the benefits of ABC?
Cost allocation is an important function in any firm. It determines the amount the firm is going to spend in order to deliver the products to the customer. Resources are always scarce. In the case study, the VP suggests that the $50,000 could be used to improve customer experience, the benefits may be instant. However, in the long term, some costs activities may not be clearly identified hence the loss of resources. The use of Activity Based Costing (ABC) system is inevitable as it provides accuracy and efficiency in the ...