Internet mini case Essay Example for Free

Internet mini case Essay Williams-Sonoma (WSM) was a specialty retailer of products for the home. The company’s products were sold through two channels: the retail channel and the direct-to-customer channel. The retail segment comprised four retail concepts: Williams-Sonoma, Pottery Barn, Pottery Barn Kids, and Hold Everything. The direct-to-customer segment sold though eight retail catalogs: Williams-Sonoma, Pottery Barn, Pottery Barn Kids, Pottery Barn Bed + Bath, PB Teen, Hold Everything, West Elm, and Williams-Sonoma Home (which incorporated elements from the previously separate Chambers) as well as through four e-commerce sites. The catalogs reached customers throughout the United States, and the four retail businesses operated 522 stores in 42 states and Washington, DC. The retail segment accounted for 58.9% of total sales; the direct-to-customer segment accounted for 41.1% in fiscal 2003. Charles E. Williams, Director Emeritus of the company in 2003, founded Williams-Sonoma in 1956 to offer high-end culinary and serving equipment in an upscale retail environment. The company entered the direct-to-customer channel in 1972, with the introduction of its flagship catalog, â€Å"A Catalog for Cooks,† which marketed the Williams-Sonoma brand. In 1983, the company internally developed the Hold Everything catalog to offer innovative and stylish storage solutions for home and home office. The success of the catalog led to the opening of the first Hold Everything retail store in 1985. In 1986, the company acquired Pottery Barn, at that time a marginally successful retailer and direct-to-customer merchant featuring a large assortment of casual home furnishings and accessories including furniture, lamps and lighting fixtures, rugs, window treatments, linens, dinnerware, and glassware. In 1989, Williams-Sonoma created Chambers, a direct-to-customer merchandiser of high-quality, premium-priced linens, towels, robes, soaps, and accessories for bed and bath. This case was prepared by Professor Maryanne M. Rouse, MBA, CPA, University of South Florida. Copyright  © 2005 by Professor Maryanne M. Rouse. This case cannot be reproduced in any form without the written permission of the copyright holder, Maryanne M. Rouse. Reprint permission is solely granted to the publisher, Prentice Hall, for the books, Strategic Management and Business Policy – 10th and 11th Editions (and the International version of this book) and Cases in Strategic Management and Business Policy – 10th Edition by the copyright holder, Maryanne M. Rouse. This case was edited for SMBP and Cases in SMBP – 10th Edition. The copyright holder is solely responsible for case content. Any other publication of the case (translation, any form of electronics or other media) or sold (any form of partnership) to another publisher will be in violation of copyright law, unless Maryanne M. Rouse has granted an additional written reprint permission. In early 1999, the company launched both its Williams-Sonoma Internet wedding and gift registry web site and its Williams-Sonoma e-commerce site. Later that year, the company launched a separate Pottery Barn Kids catalog to offer well-made, stylish children’s furniture and decorative accessories. (Pottery Barn Kids was one of the first concepts to market in what is expected to be a major growth segment during the next decade, as birthrates in the United States. are expected to surpass rates achieved at any time in the past 30 years. Birthrates among older women are soaring, and older moms tend to be wealthier and more willing to splurge on their children.) Pottery Barn Kids stores were opened adjacent to Pottery Barn stores across the United States, and by September 2004, there were 78 stores. Edward Mueller, Williams-Sonoma CEO, expected Pottery Barn Kids to be the primary growth vehicle for the company over the next several years. Williams-Sonoma launched its Pottery Barn web site and created a separate Pottery Barn Bed + Bath catalog in 2000. In 2001, the company added a Pottery Barn Kids web site, and a Pottery Barn online gift and bridal registry, and it opened five new retail stores in Toronto, Ontario. In line with its related diversification growth strategy, Williams-Sonoma tested a new catalog in summer 2002, under the West Elm brand. This new brand targeted young, design-conscious customers seeking to furnish first homes/apartments/lofts with quality furniture and accessories at affordable price points. West Elm product categories included furniture, decorative accessories, and an extensive textiles collection. In 2003, Williams-Sonoma expanded its catalog mailings for West Elm, added a web site, and opened its first retail store. Williams-Sonoma launched PB Teen with a catalog and web site in late April 2003. PB Teen was intended to fill the market space between Pottery Barn and Pottery Barn Kids with hip, exclusively designed furniture, rugs, lighting, bedding, and accessories promoted with its catalog, interactive web site, special sales campaigns, and contests. The company’s newest concept, Williams-Sonoma Home, was introduced in third quarter 2004 to tap into what company Chairman William H. Lester noted had been an empty space between the Pottery Barn demographic and designer home furnishings. Lester hoped to position this brand extension as an upscale furniture concept that would be more classic and less fashion-forward than Pottery Barn. Dave DeMattei, Williams-Sonoma’s President of Emerging Brands, noted that the look of casual elegance was â€Å"aspirational,† using an industry term for a product that helps a consumer trade up without necessarily spending top dollar. This new home collection, put together by Steven Brady, former President for Home Design at Ralph Lauren Home, featured down-plumped sofas ranging from $2,200 to $5,800 and $3,000 leather headboards as well as crystal lamps, cashmere throws, and the upscale linens formerly featured in the company’s Chambers catalog. (The company planned to fold the Chambers catalog into the Williams-Sonoma Home catalog.) Although some industry watchers questioned whether consumers would be willing to buy somewhat pricey furnishing sight-unseen, the company’s alliances with decorators, who would get trade discounts, were expected to help overcome initial resistance. The first Williams-Sonoma Home retail stores were expected to open early in 2 005. Retail Stores As of September 2004, Williams-Sonoma operated a total of 522 retail stores located in 42 states, the District of Columbia, and Toronto, Ontario: 242 Williams-Sonoma, 176 Pottery Barn, 82 Pottery Barn Kids, 7 Hold Everything, 1 West Elm, and 14 outlet stores. The company leased rather than owned its retail space. As of September 2004, the company’s gross leased square feet totaled 4,292,000, with 2,705,000 â€Å"selling† square feet. Lease terms ranged from 3 to 23 years. The average square feet per retail location increased from 7,660 in 2002 to 8,200 by August 2004, as the company replaced older, smaller Pottery Barn stores with larger stores carrying a wider variety of merchandise, including furniture. Direct-to-Customer Operations The direct-to-customer segment sold a variety of products through eight catalogs and e-commerce web sites. The company sent its catalogs to addresses from its proprietary customer lists as well as to names it received in exchange (or purchases) from other mail-order merchandisers, magazines, and other companies. The direct-to-customer business complemented the retail business by building customer awareness of the brand and acting as an effective promotional vehicle. Williams-Sonoma also used its catalogs and e-commerce sites as a cost-efficient means of testing market acceptance of new products. As of 2004, of the eight merchandising concepts, the Pottery Barn brand and its extensions had been the major source of sales growth in this segment for the previous several years. A good deal of Pottery Barn’s success was attributed to its ability to create a â€Å"lifestyle brand.† A brand gained â€Å"lifestyle† status via style, innovation, and appeal to customers who wanted to lead a particular style of life; in short, it allowed the company to reach a higher level in terms of the connection it made with the customer. Facilities/Locations Williams-Sonoma leased centralized distribution facilities in Olive Branch, Mississippi (2,152,000 square feet), and Memphis, Tennessee (1,515,000 square feet), and call centers in Las Vegas, Oklahoma City, and Camp Hill, Pennsylvania (approximately 36,000 square feet in each location). Distribution centers served both the company’s retail locations and fulfillment operations. The company also leased office, warehouse, design/photo studio, and data center space in California, New York, and Florida. In February, Williams-Sonoma purchased headquarters offices in San Francisco. Suppliers The company’s sourcing strategy included relationships with manufacturers in over 40 countries. Approximately 58% of merchandise purchases were from non-U.S. vendors, most of which were located in Europe and Asia. Substantially all of the company’s foreign purchases of merchandise were negotiated and paid for in U.S. dollars. Any event causing a sudden disruption or delay of imports from foreign vendors, including the imposition of additional import restrictions, restrictions on the transfer of funds and/or increased tariffs or quotas, or both, against home-centered items could increase the cost or reduce merchandise availability. No supplier accounted for more than 4% of Williams-Sonoma’s total purchases. Finance In fiscal 2003 (fiscal year ended February 1, 2004), Williams-Sonoma reported a 16.7% increase in net revenues over the prior year, the highest pretax operating margin and earnings per share in the company’s history and an increasing return on assets. Williams-Sonoma’s profit for the quarter ended August 1, 2004, jumped 55% as sales surged at the company’s Pottery Barn and outlet stores. Revenue for second quarter 2004 increased 19%, to $689.6 million, with direct-to-customer sales up an impressive 27%. Pottery Barn and Pottery Barn Kids drove second quarter retail growth with same-store sales increases of 10.2%; however, same-store sales at the company’s Williams-Sonoma stores slid 1.6%. The closing price for Williams-Sonoma stock on October 14, 2004, was $36.33. (Note: Williams-Sonoma’s annual and quarterly reports and SEC filings are available via the company’s web site, www.williams-sonomainc.com, and www.wsj.com ) The Industry The specialty retail business was highly competitive and characterized by a number of challenges, including: Anticipating and quickly responding to changing consumer demands Maintaining favorable brand recognition and effectively marketing products to consumers in diverse market segments Developing innovative, high-quality products in colors and styles that appealed to consumers of varying age groups and tastes Competitively pricing products and achieving customer perception of value Providing strong and effective marketing support Specialty retail exhibited the low entry barriers characteristic of fragmented industries, barriers that may be all but eliminated with the increased popularity of the Internet. Favored products for online shopping included computers, books, CDs, electronics, toys, and housewares. Over time, industry analysts expected catalog retailing to merge with e-tailing as web sites become electronic catalogs. For successful companies with strong brand names, the combination of stores and web sites would be a powerful one; however, expenditures for e-commerce sites would hurt profitability in the short run. Competitors Williams-Sonoma’s specialty retail stores, mail-order catalogs, and Internet web sites competed with other retail stores, other mail-order catalogs, and other e-commerce web sites that marketed similar lines of merchandise. The company competed with national, regional, and local businesses as well as traditional furniture stores, department stores and specialty stores. The substantial sales growth in the direct-to-customer industry within the past decade had encouraged both the entry of new competitors and an increase in competition from established companies. Direct competitors included such national companies as Crate Barrel, Restoration Hardware, Pier 1 Imports, and Bombay Company, as well as regional companies such as the Door Store, Rolling Pin Kitchen Emporium, Home Elements, and Expressions. Crate Barrel A counterculture story of the 1960s, Crate Barrel opened its first store in Chicago’s Old Town in 1962 and mailed its first catalog in 1967. Privately held Crate Barrel prided itself on designing beautiful store displays that were difficult to copy and worked diligently to find products from smaller, out-of-the way factories that made beautiful products that consumers could afford. Although the company had significantly fewer brick-and-mortar locations (84 retail and outlet stores) than the Williams-Sonoma retail concepts with which it competed, Crate Barrel marketed nationwide via its catalogs and web site. Restoration Hardware Restoration Hardware grew from just 20 stores in 1997 to 104 at the end of 2001, barely 37 behind Pottery Barn in brick-and-mortar locations; however, the company had had a difficult time managing growth. Its aggressive expansion between 1998 and 2000 cost it two years of profits and sank the value of its stock to as low as $.50 a share in December 2000, from $37 a share in 1998, the year it went public. The closing price for its stock on May 19, 2002, was $10.19. Both Restoration Hardware and Pottery Barn sold high-dollar, vintage-style furniture and home furnishings and had many other characteristics in common, including significant growth in direct-to-customer sales. Industry observers estimated that while Pottery Barn targeted the wealthiest 20% of Americans, Restoration Hardware targeted the wealthiest 10%. Whimsical nostalgia had been a big seller for Restoration Hardware for several years, with such items as retro tools, steamer chairs that could have come straight from the set of Titanic, shot glasses decorated with optometrists’ eye charts, and down-filled â€Å"foot duvets† proving hugely popular with shoppers. Restoration Hardware’s not-so-secret weapon in the battle for upscale customers could well have been Gary Friedman. In spring 2001, Friedman, who managed Pottery Barn’s explosive growth in the 1990s, was named CEO of Restoration Hardware after having been passed over for the top job at Williams-Sonoma. Pier 1 Imports Pier 1 Imports comprised three chains of retail stores operating under the names Pier 1 Imports, The Pier, and Cargo. Products offered included a wide variety of furniture, decorative home furnishings, dining and kitchen goods, bath and bedding, and other specialty items for the home. During the fiscal year ended February 28, 2004 (fiscal 2003), it operated 1,015 Pier 1 stores in the United States and 68 Pier 1 stores in Canada, and it also supported 8 franchised stores in the United States. In addition, it operated 29 stores located in the United Kingdom under the name The Pier and 40 Cargokids stores located in the United States. Pier 1 also supplied merchandise, and it licensed the Pier 1 Imports name to Sears Mexico and Sears Puerto Rico, which sold Pier 1 merchandise in a store-within-a-store format in 20 Sears Mexico stores and in 7 Sears Puerto Rico stores. The Bombay Company The Bombay Company’s retail stores and catalog emphasized classic traditional furniture, wall decor, and accessories. Furniture included both wood and metal ready-to-assemble furniture designed for the bedroom, living room, dining room, and home office. Functional and decorative accessories included lamps, jewelry, baskets, candles, scents, ceramics, frames, and desktop items. Wall decor included prints and mirrors. On January 31, 2004, the company operated 415 stores in 42 states and 56 stores in 9 Canadian provinces, as well as 46 outlet stores. The company viewed the outlets as an opportunity to increase sales to a different customer base, to assist in the orderly clearance of merchandise, and to further capitalize on its strength in designing and sourcing proprietary products. Accessories, the broadest category offered by the company, accounted for 43% of sales in 2003, while large furniture accounted for 31%, and ready-to-assemble products 14%, with wall decor accounting for the remaining 12%. Door Store The privately held Door Store operated nine retail locations in New York, New Jersey, and Connecticut. Its products included contemporary and traditional case goods and upholstered furniture; it competed with both Pottery Barn and Hold Everything. The company’s product strategy was to anticipate trends in furniture and to make quality furniture available to style-conscious customers at â€Å"prices almost too good to be true.† The Door Store also marketed via its web site and shipped nationwide. Rolling Pin Kitchen Emporium This privately held franchise kitchen and housewares concept, with headquarters in Little Rock, Arkansas, had store locations in regional and upscale malls in Arkansas, North Carolina, South Carolina, and Florida. In addition to retail sales, the company marketed nationwide via catalogs and its web site. The Rolling Pin competed with Williams-Sonoma. Other Competitors Other competitors across retail concepts included local and regional furniture and specialty stores, department stores, and direct-ship manufacturers. Williams-Sonoma’s expansion from the kitchen into the rest of the home with its flagship brand via the new Williams-Sonoma Home concept was expected to reorder a landscape dominated by traditional retailers such as Ethan Allen and Room Board and by â€Å"tastemakers† such as Martha Stewart for Bernhardt and Ralph Lauren Home.

Back Ground of the Company Xerox

Back Ground of the Company Xerox Haloed Corporation was renamed in 1961 as XEROX. Photocopier was their main product which was introduced in 1959.Xerox was the only company in the market providing photocopier. The company monopolized the market as the only seller of photocopier and this monopoly was well protected by patents. The logical result of this monopoly was the over confidence of the company. They made their own standards and trusted heavily on them. Joint ventures were the method adopted by XEROX to hit the international market. In 1959 RANK XEROX was registered and was assigned a target to hit the market European and African market. In 1962 FUJI XEROX worked in the domain of FAR EAST and ASIAN PACIFIC. Average and high level market was the target of XEROX and had nothing to do with low level market. Competition Monopoly complaint against XEROX was filed by the Federal Trade Commission in 1973. In 1975 XEROX took away its patents. Many other companies jumped in and between1971 and 1980 about 147 companies got hold of the market. The result was obvious and XEROX lost about50%of the market share. Middle and high level market was captured by IBM and Eastman Kodak . New technology was introduced by these companies and took a   good share of the market from XEROX. The low level market was captured by Japanese firms. The products for the low level market were not in the domain of XEROX and that is why it could not compete the Japanese companies. The Japanese then came into the middle and high level industry. Their product was favored because it was easy to use and preserve. Diversification In 1969, Xerox assumed technological information system also called scientific data system. With the help of scientific data system, Xerox developed mainframe computers. They afterward traded it off in 1975 at loss of 1.4 billion. In 1970 the company bought disables system; it developed daisy wheel printer and computer memories. Xerox merged memory writer, a company which was producing typewriters. This   was   a successful deal, as the company was able to capture 20% of the typewriter market. The Xerox developed its own research center which designed a new electronic printing technology. This also a lot the company to hold majority of the market purchasing foster in 1983, and then acquiring van Kampen market, company got good position in the market. Xerox in the 1950 Peter McCullough wanted to implement quality circle activity in the company which he observed during his stay in Japan. A team was sent to Japan to study the activity in 1978, the team also Study General Motors and the other US manufactures. The result of the study was the involvement of the employees in the company would be fruitful in future. To implement the decision of involvement of employees in company. Dr. Harold J. Tragash was hired in 1979. The 30% of the work force was given training in 1980.the employees were divided into 100 groups. These groups participated into the fairs of company and the result were as listed: Cost reduction. Employee satisfaction. Improvement in product quality. In 1982, David Keans become the CEO of the company, he placed off employees and quitted 2100 employees by 1983, Business effectiveness in 1980, Dwight F. Ryan was made the dead of business effectiveness department. He was given the following tasks: Improve productivity Reduce cost Improve customer satisfaction. The policy of the involvement of the employees in the affairs of the company became the first step towards the business effectiveness. Company structure was changed in Ju8ly 1981 abd the business was made into strategic Business unitys. Business system department was handed over to Dwight F.Ryan. fifty Top managers along with David Kean held a meeting in September 1981.which was ended to strong suggestion s to implement business effectiveness with force on employee involvement and competitive benchmarking. Keans, Rechired and Teagash worked very hard on three goals i.e. increase in productivity cost, effectiveness and customer orientation. Fuji Xerox Fuji Xerox was facing new competition in the world market in 1970. Japan being the leader in business activity, posed though competition for Fuji Xerox which h had base in Japan. The solution came in 1976 in the shape of â€Å" the New Xerox Movement â€Å". Demining award for quality was awarded to Fuji Xerox in 198. This was the result of this new movement. David Kearns visited Japan to find out the causes of winning the   award . He studied deeply the Fuji Xerox model. In 1982 Targash Richard d and their staff worked o a business strategy effectiveness for Xerox. Theyir study was based upon the Fuji Xerox model.   They had a number of meeting with David Kearns and finely on July 1980, a new strategy called â€Å"Pursuit og Execellence†was put   forward by the team.the team consisted of Senior managers which worked hard to form   new stretgy adnn method of its implementation .In 1982 David Nadler and Delta consulting groups was hired to follow the Fuji Xerox model. Blue Book (a management-Change) In1983, Kearns held a meeting with cooperate management committee and operating units heads about Blue Book. Twenty five executives gave their opinion about Blue Book. The wuality experts Phil Crosly and W. Edwards were also invited to speak at   the meeting. The main objective of the blue book were: Quality improvement, by doing things right and doing them well. To improve long term business success. Quality determined by customers. Provide training by all levels. To make the senior managers as role models. A system of employee quality reward system to be set up. Leadership throughQuality: Quality strategy became the responsibility of 25 executives to whom David Kearns held a meeting in February in 1983.he explain the meaning of Quality as doing things right the first time.The blue book was not presented as finished product ,instead it was used for briefing product and discussion. The exective of Xerox were divided into two parts. One worked for communication and the other worked for reward and recognition. The outcome of these groups were as follow: The concept of â€Å"Leadership through quality† was introduced. The idea of Xerox quality was given. Quality ws defined as meeting customer existing and their requirements in future. Improving quality means understanding and working to satisfy the customers requirements. Kearns emphasized on Quality as well as on keeping eye on the challenges going around in other industries. He was the opinion that is was the time to change the culture and timae to introduced the quality culture at Xerox . In august 1983, the system for Xerox was changed to insure quality. Cooperate Quality Office On March 29, 1983, cooperate quality office started functioning. Fred. B. Henderson became vice president for quality. He was also elected as cooperate office by the board of directors. Henderson emphasized on employee involvement, competitive benchmarking and leadership through quality. According to John Kelsch quality award business strategy are closely related. A change in quality would be a change in strategy. Quality strategy is more useful than product strategy. Quality implantation team was selected which was working in cooperate quality office. Each business group was given representation in the office. Nine erecutive were from the field and six executives were from the cooperate office including Tragash and Richard.Each member was named as vice president for quality and had to report its departmental head. In April 1983 a six a six month strategy was implanted by QIT. The member had their concern over its implantation. Firstly would it work and secondly will the company stick to the changes. There was another very important concern and that was about timeframe. There were of the view that it would change the culture and than larger period of time will be required for adjustment. And other sections of member were of the opinion that too much work is required for this applications and the original task will be showed. After the formation of quality implementation team (QIT),the quality training task force was made. The range of work set for QIT was to implement the change and quality training task force (QITF) would provide training to the employees. The member of QIT will share ideas, get input from the parent department.adn establish the home office stake in process. In 1983 the team produce second blue book for implementation at the end of the meeting, they had a strategic plan in their hand and was named as green book. The green book gave stress in quality strategy, and short term programs which produce long term leadership. The goals of green book were as follow: Setting goals which are yet to achieve. There must be a strategy for quality and implement. The working method. The green book was consisted on 92 pages its range of study was consisted of 92 pages. Its range of study was the cost of quality, outline for quality implement process problem solving process and tool for served strategically problems. It gave the idea that competitive bench marking is the key tool for several statistical problems. it gave the idea that competitive bench marking is   the key tool for evaluating Xerox. This green book was implanted from 1983 to 1987. The most important and positive aspect of this whole exercise was the training. Each training was given a problem they would have to solve them. The training was given from top to bottom. Managers were trained first and then they participated in the training of their subordinates this training was named as cascade. Changes and Opportunities Occurred In 40 Years Strength in the Past: In the beginning, Xerox enjoyed pure monopoly; there was no competitor in the market. The product of company was well protected by patents. This pure monopoly gave the following benefits to the Xerox. There was no price pressure from the competitors. It could fix and alter the price according to its own will. The company could increase their price by decreasing its production. There was no risk of over production. Other company completely controlled the market. During first fifteen years the main products were Xerox 914, the first plane paper Xerox 813, the first desktop plain paper and first photocopier. By 1965, company revenues crossed $500 million. In 1975, Xerox was forced by the federal trade communication to license its copies to other manufactures. Xerox monopolized the upper level market for a long time and during this period; the company extended its product line. Strength Today: The strength of the company lays the following facts: It had a good brand name image. The company was the pioneer in its filed. Good quality products, best technologies and good services gave a stronger out look to the company. Even Japanese companies did not enjoy such a strong image. The slogan of total satisfaction guarantee according to which instead of monetary refund the products are replaced, became a reason for its bigger image. The company had excellent quality management team. Employees participation in operational decisions made a very strong image of the company in local and international market. The people working in the organization are proactive in nature then re active. The employee participation in the affair of company to find out the demands of customers. Weakness in the past The company got over confident because of the monopoly enjoyed by it for a long time. The company started taking things causally. For Example â€Å"the receipt provided to purchaser had only product code on it rather than the product name. The purchaser would not know if he caught what he asked for. Internal competition was another weakness in the past. There was a competition among the employees which badly affected the organization effectiveness. And knowledge management practices. The other result of this internal competition were the isolation of the information, lose of employees, breaks in the organizational flow charts and corporate disloyalty. Another weakness of the company was that it was not targeting the low level market. Xerox only targeted higher market. Xerox could have increased its profits if they would have targeted low markets. With the arrival of new competition, Xerox tried to improve its quality. It failed to do so because of its scattered efforts. There was a lack of collective efforts. Weakness Today The following are the weaknesses of Xerox Corporation: Total quality management implementation resulted in high over head costs. Financial position of Xerox is not very good. 100% quality concept created a negative competitive position for Xerox. As customers are not ready to pay for exceptional quality and services. Fixed asset turn over as increase in recent years. But the total asset turnover ratio has decreased. It is because of the reason that the company has increased its inventory requirements by its product replacement concepts. Leverage ratios are increased where as profitability ratios are decreased.   Opportunities in The Past Since Xerox enjoyed monopoly in its products therefore the whole world was its market. The company availed its opportunities and targeted the different regions of the world. This goal was achieved by joint ventures with other companies, the details of which furnished below: Xerox got into joint venture with a British company named as Rank Organization in 1959. The joint venture came in the market with the name Rank Xerox. The target of this company was to manufacture and market Xerox equipment in Europe, Africa and Asia. Modi Xerox (Xerox India) was a joint venture between Rank Xerox and Modi group in India and its rang was Indian subcontinent. Fuji Xerox was established in 1962. Which was a joint venture of Rank Xerox and the Japanese photography firm Fuji Photo Film Co. They aimed Far East and Asia Pacific region for the xerographic and document related products and services in these regions. Opportunities Today Following may be the opportunities of Xerox Corporation: Diversification into more product lines. Expansion into more production foreign market. By diversifying into more product lines and by finding new potation markets such as Europe and South East Asia, the company can increase its business and establish its credibility in the international market. Threats in the Past There was no self benchmark in the company and it heavily relied own internal benchmark. There are positive points in internal benchmarking as it is cost effective. It is easy to gain access to all the information required. The negative aspect of the internal benchmarking is that we cannot get information about the competitors and the other outside parties. Internal benchmark may not be adequate to face the external pressure. Keeping in mind the drawbacks it is better to use external benchmarking. External benchmarking is a useful way of studying of performance measured taken by successful organizations with in the same industries or the different industry and learning for them. It is also useful for studying the various systems and processes. The idea that benchmarking is done against in the company in the same industry is a miss concept.   Monopoly case was registered to Federal Trade Commission in 1973 and as a result of this Xerox had to take away its patents in 1975. Monopoly was changed into monopolistic competition in the market which was a great threat to the company. Between 1971 and 1978, 77 different plain paper copiers came into the market and between 1978 to 1980, 70 more companies listed their mark in the market. This shattered the shares of the company which dropped from 100 % to 50 %. After the removal of monopoly of Xerox, many Japanese companies entered in photocopy business. And targeted the low level markets. Xerox could not compete as it had no product to offer the low level market. Japanese after getting the good position in the lower market, started to move toward the mid and upper level markets. Their products were better, easy to use, easy t maintain and more efficient. It was a big blow to Xerox.

Ray Bradburys Something Wicked This Way Comes Essay -- essays research

Ray Bradbury's Something Wicked This Way Comes David Glasgo Modules 15-16 Dec 20, 1996 Someone knows your secret dream, that one great wish that you would pay anything for. That person suddenly makes your dream come true - before you learn the price you have to pay. Ray Bradbury's, Something Wicked This Way Comes, is a chilling and suspenseful thriller, making a boy's secret dream come true right before his own eyes and that of his friend's too. The story in this book continually jumps back and forth between three characters; two which are always together and the other the library janitor and father of the one. Bradbury's style keeps the book flowing smoothly throughout all of his hopping and skipping around. He seems to be a mastermind of writing as the story develops before your eyes and you get drawn in never wanting to leave, until the book is over and you know the ending. I felt like I was sitting right there on the clouds watching all of this take place. Bradbury pulls you into the book and makes it "our place, too." All of this starts off quite interesting. It is October, the month of Halloween, and in this strange year Halloween came early. A lightning rod salesman, come to the town predicting a humongous storm that is coming this way. The clouds speak their own words, telling the same. Jim Nightshade and William Halloway, neighbors and best friends, one born a minute before October thirtieth and...

Developing an Advertising Program Essay

In developing an advertising program, marketing managers must always start by identifying the targetmarket and buyer motives. Then they can make the five major decisions, known as ? the five Ms?. y Mission:It states the objectives of the advertising. It also includes the sales goals of thecompany. The different company has its own mission, and its own marketing plan. y Money:It gives an idea that how much money should be spent by the company for theadvertisement. Factors to be considered for this are stage of product life cycle, market shareand consumer base, competition, advertisement frequency and product substitutability. Organizations use several methods for determining advertising budgets including:affordable method, percentage-of-sales, competitive-parity method, objective-and-task method : y Message: Message includes what message should be spent in advertisement. It includesmessage generation, message evaluation and selection, message execution and socialresponsibility review. Media:It includes which media should be used for the advertisement.  It also includes reach,frequency, and impact of the advertisement. It also contains major media types, mediavehicles, media timing and geographical media allocation. y Measurement: it is nothing but evaluation of the results. It measures communicationimpact and sales impact by an advertisement. 1) Setting The ObjectivesThe advertising objectives must flow from prior decisions on target market, brand positioning and themarketing program. Informative advertising:The prime objective of the advertising is to inform the existing and potentialcustomers about the product. Persuasive advertising:It aims to create liking preference, conviction and purchase of a product orservice. Persuasion will create demand of the product. Reminder advertising:It aims to simulate repeat purchase of products and services. This will remind thecustomers that the product may be needed in the near future. Reinforcement advertising:It aims to convince current purchases that they made the right choice.

Napoleon Bonaparte: a True Tyrant Essay

Ideals of the Enlightenment and the French Revolution were both rooted from the desire to abolish absolute authority, ensure the natural rights of men, and develop a stable government. Napoleon Bonaparte, a prominent military general and French Emperor, strived for these political ideologies, but was corrupt in his way of approaching them. He was strictly egotistical and selfish; these characteristics served only as a catalyst to his abolition. Mohandas Gandhi, a pacifistic revolutionary that led India’s emancipation, stated that â€Å"power based on love is a thousand times more effective and permanent then the one derived from fear of punishment†. Napoleon, however, seized control over France by ruling oppressively and ruthlessly; citizens followed him only in fear of his boundless power. Although Napoleon did help establish political and social equality in France, his uncontrollable desire for personal supremacy suppressed the ideals of the revolution and violated th e basic principles of the enlightenment. Napoleon’s personal greed for power drove him to infringe the basic principles of the revolution on the rights to hereditary and absolute rule. Robespierre, an enlightened leader of the Jacobins, stated that the purpose of the French Revolution was to abolish absolute monarchy and institute a â€Å"democratic or republican government† that could help increase political equality within a nation (Robespierre). However, Napoleon rejected any republican form of government; he was solely concerned with maintaining a â€Å"hereditary power, which†¦ may endure for generations, even for centuries† (Selected). Ironically though, in hopes to gain popularity among members of the 3rd estate, he abolished the power of the nobility and appointed governors that were loyal to the central government. Not only did he crown himself emperor of France, but also, â€Å"he established an imperial court and the members of his family were made royalty, while other titles and honors were given to his supporters† (Sarti). He was â€Å"not content merely to create a dynasty for France†, but was constantly looking for ways to improve his family’s reputation (Axelrod). Napoleon’s advice in a letter to his brother, Jà ©rà ´me Napolà ©on, revealed his obsessive concern over his own reputation and greed for the â€Å"strength of [his] monarchy†. This unenlightened behavior reflecting unequal treatment of the people strictly goes against the revolution’s purpose, and thus, proves that Napoleon was an extremely authoritarian and ruthless emperor. Consumed by his insecurity and unbounded ego, Napoleon stripped away the natural rights of his citizens to prevent France from entering utter chaos. In The Second Treatise on Government, John Locke, a prominent Enlightenment philosopher, emphasized on the importance of preserving the â€Å"lives, liberties, and estates of the people† when governing a nation. Napoleon, on the other hand, was a strong anti-advocate of the freedom of speech and press; he believed that in order to maintain power over his people, it was necessary to â€Å"never allow the newspapers to say anything contrary to [his] interests† (Leader). In effort to maintain peace within the nation, he also â€Å"banished discussion and proscribed the freedom of press†, and stole his citizens’ rights to the freedom of expression (Selected). Although this prevention helped preserve serenity within France, it caused them to live in oblivion of the rest of Europe. He most proudly stood against the ideas conveyed in the Declaration of the Rights of Man and of Citizens on the people’s right to â€Å"unrestrained communication of thoughts and opinions†, because he was strictly concerned with his reputation among his citizens. In order to gain the affection of his people, he also constructed the French Civil Code in 1804, which promised â€Å"equality under the law†. However, this project created to promote equality within the nation, developed â€Å"conditions that were very unfavorable to wives†; it clearly was not â€Å"designed for†¦ the good of the people† (French Civil Code) (Locke). By restricting the people’s access to their natural rights of mankind and constructing laws for certain groups, Napoleon hoped he could gain admiration from his followers and earn the recognition of his neighbors. This, however, only proved that he was a dictator who oppressed the most fundamental and enlightened ideals of the revolution. Napoleon was not only egotistical and selfish, but he was also a reckless military dictator who maintained stability using violence and unnecessary invasions. Although he strived for social equality and a utopian society, in reality, very few beneficial changes were made during the time of his rule. In fact, during his invasion of Russia, over 300,000 French soldiers were killed: it weakened the entire French army. A passage summarizing the French-Russian war stated: â€Å"Although [Napoleon] managed to preserve himself and the core of his Grand Army, much of his forces were destroyed or had deserted him †¦ fewer than 10,000 men fit for combat remained in [the] main force† (Phillips). War general, Philippe de Sà ©gur, who accompanied Napoleon on many of his military campaigns, described him as an insensitive, callous dictator who valued his own life far more than of his soldiers: â€Å"He rapidly descended the northern staircase†¦ and gave orders for a guide to conduct him out the city †¦ to the imperial castle of Petrowsky† (Selected). Benjamin Constant, an active participant of French politics, also thought of Napoleon as a barbaric conqueror who robbed â€Å"us of the heritage of all the enlightened generations† and took advantage of the French army for his own benefit (Selected). Napoleon’s foreign policies, such as the Continental System that boycotted all British goods, and his unsophisticated military invasions on Russia further reflected qualities of a self-absorbed dictator; he was selfish, uncaring, and insensitive to the physical well being of his citizens. Although Napoleon helped improve the lives of many, his excessive lust for power and egotistical character deprived him of the admiration from his citizens. By restoring hereditary rule within the nation, he directly violated the main purpose of the revolution; equality was certainly not established. He went against the ideals of the Enlightenment protecting the natural rights of every individual by stripping away his citizens’ right to life and liberty. Napoleon was, in fact, a dictator who ruled unconstitutionally and was constantly preoccupied with the thought of personal success; his selfish personality and overbearing ego served as a strong foundation to his authoritarian rule over France.

Management Accounting

Overall requirement * Explain how management accounting can supply information to assist the management of the organisation. * You are not required to investigate and report on the organisation’s actual management accounting system (even if you can find out). * You are to write a 1500 word report as though you were a management consultant writing to the board of directors. * WE DO NOT WANT ANY NUMBERS UNLESS YOU CREATE THEM TO DEMONSTRATE AN IDEA * This is like assessment 1a – you are to imagine and create! This is a report * It has an introduction A main body (see the next slides) * A conclusion How your marks will build up * Background to the organisation showing good reading of appropriate sources 25% * Review of the nature and role of management accounting 10% * An analysis of the organisation, showing its information needs, the management accounting techniques it might use and decisions it could then make. 50% * The strengths and weaknesses of your analysis  œ for example the additional information you would have liked in order to improve your analysis. 15% Background to the organisation The reason for this is to introduce your organisation (briefly) and to show what a manager in this organisation will do. Later you will show how m. a. helps. * A manager will make decisions about the organisation’s products, processes etc. – therefore your introduction will cover this. * This introduction will reveal the kind of problems that your organisation faces and must overcome. * We do not want the history of the organisation and any information that you will not use later. * Choose your organisation carefully – one that you can understand. You need to be able to imagine the kinds of decisions that a manager might make. Review of the nature and role of management accounting * A definition (with reference) * Some idea of what management accounting does and what it does not do. * Some examples of the techniques and methods of m. a. * You have been studying this since week 5 and so it should not be a problem * DO NOT TRY TO BE TOO CLEVER. IN PREVIOUS YEARS STUDENTS HAVE MENTIONED ABC, JUST IN TIME AND THROUGHPUT ACCOUNTING. Do not do this as you probably do not understand these techniques and will only show that this is so. Keep to what you know! An analysis of the organisation, showing its information needs, the management accounting techniques it might use and decisions it could then make. * This is the hard part that attracts the most marks * You are to link part 1 and part 2 – you organisation’s needs to the techniques and methods of management accounting * What does m. a. Do that will help this organisation? * How can it improve processes? * How can it compete better? * How can it choose between products? * How can it use m. a. for pricing? Planning, controlling, motivating, organising etc * Difficult – but you are applying what you have learned to the problems of the organisation. The strengths and weaknesses of your analysis * This was badly done in assessment 1b * WE DO NOT WANT THE S&W OF THE COMPANY * What aspects of your analysis are strong. Where do you feel that your recommendations are strong and secure? Give examples. * Where do you feel your recommendations are weak perhaps due to lack of information about the company or lack of your knowledge and experience of management accounting. Give examples. Management Accounting Use the following to answer question 1: Marger, Inc. , provided the following data for two recent months: [pic] |1. |Which of the following classifications best describes the behavior of Cost T? | |A) |Variable | |B) |Fixed | |C) |Mixed | |D) |None of the above | 2. |The following data pertains to activity and maintenance costs for two recent years: | | | | | |[pic] | | |Using the high-low method, the cost formula for maintenance would be: | |A) |$1. 50 per unit. | |B) |$1. 25 per unit. | |C) |$3,000 plus $1. 50 per unit. | |D) |$6,000 plus $0. 75 per unit. | |3. Rible Company has observed that at an activity level of 8,000 units the cost for maintenance is $15,000, and at 10,000 units the| | |cost for maintenance is $16,500. Using the high-low method, the cost formula for maintenance is: | |A) |$15,000 plus $0. 15 per unit. | |B) |$9,000 plus $0. 75 per unit. | |C) |$1. 65 per unit. | |D) |$1. 875 per unit. | |4. |Which of the following types of firms likely would have a high pr oportion of variable costs in its cost structure? | |A) |Public utility. | |B) |Airline. | |C) |Fast food outlet. |D) |Architectural firm. | |5. |Factory overhead is an example of a: | |A) |mixed cost. | |B) |fixed cost. | |C) |variable cost. | |D) |irrelevant cost. | Use the following to answer question 6: Buffo Company fabricates metal folding chairs. Data concerning the company's revenue and cost structure follow: [pic] |6. |If Buffo plans to produce and sell 3,000 units next month, the expected contribution margin would be: | |A) |$30,750. |B) |$74,250. | |C) |$26,750. | |D) |$96,500. | Use the following to answer question 7: Frank Company operates a cafeteria for its employees. The number of meals served each week over the last seven weeks, along with the total costs of operating the cafeteria are given below: [pic] Assume that the relevant range includes all of the activity levels mentioned in this problem. |7. |Using the high-low method of analysis, the variable cost per mea l served in the cafeteria would be estimated to be: | |A) |$1. 50. | |B) |$2. 0. | |C) |$2. 80. | |D) |$1. 00. | Use the following to answer question 8: Stewart Company is attempting to classify costs according to their cost behavior. Data concerning activity and costs are listed below: [pic] |8. |If Stewart Company sells 1,150 units in March and this activity is within the relevant range, the expected total cost would most| | |likely be closest to: | |A) |$2,610. 50. | |B) |$1,774. 00. |C) |$4,343. 92. | |D) |$4,384. 50. | |9. |A disadvantage of the high-low method of cost analysis is that: | |A) |it cannot be used when there are a very large number of observations. | |B) |it is too time consuming to apply. | |C) |it uses two extreme data points, which may not be representative of normal conditions. | |D) |it relies totally on the judgment of the person performing the cost analysis. | Use the following to answer question 10: Marger, Inc. provided the following data for two recent months: [pic] |10. |Which of the following classifications best describes the behavior of Cost U? | |A) |Variable | |B) |Fixed | |C) |Mixed | |D) |None of the above | |11. |Fox Company's contribution margin ratio is 20%. If the degree of operating leverage is 15 at the $225,000 sales level, net | | |operating income at the $225,000 sales level must equal: | |A) |$2,250. | |B) |$6,750. | |C) |$3,000. | |D) |$5,063. | |12. |Korn Company sells two products, as follows: | | | | | |[pic] | | |Fixed expenses total $300,000 annually. The expected sales mix in units is 60% for product Y and 40% for product Z. How much is | | |Korn's expected break-even sales in dollars? | |A) |$300,000 | |B) |$420,000 | |C) |$475,000 | |D) |$544,000 | |13. |Brown Company has sales of 2,000 units at $70 per unit. Variable expenses are 40% of the selling price. If total fixed expenses | | |are $44,000, the degree of operating leverage is: | |A) |0. 79. | |B) |1. 40. | |C) |3. 50. | |D) |2. 10. | Use the following to answer question 14: Budget data for the Bidwell Company are as follows: [pic] |14. |If fixed expenses increased $31,500, the break-even sales in units would be: | |A) |34,500 units. | |B) |80,500 units. | |C) |69,000 units. | |D) |94,500 units. Use the following to answer question 15: Evergreen Corp. has provided the following data: [pic] |15. |The number of units needed to achieve a target net operating income of $49,500 would be: | |A) |1,238 units | |B) |2,750 units. | |C) |3,200 units. | |D) |2,057 units. | Use the following to answer question 16: A manufacturer of premium wire strippers has supplied the following data: [pic] |16. The company's degree of operating leverage is closest to: | |A) |20. 09 | |B) |7. 73 | |C) |1. 86 | |D) |55. 64 | Use the following to answer question 17: Consider the following budgeted data f or Urqhart Corporation: [pic] |17. If the unit contribution margin is increased by 10%, the total fixed expense is decreased by 20%, and all other data remain as | | |in the budget, net operating income will be: | |A) |$102,500. | |B) |$105,000. | |C) |$ 90,000. | |D) |$ 93,750. | Use the following to answer question 18: The costs of publishing a grade school textbook can be assumed to be as follows: [pic] Each book sells for $10 per copy. |18. |The unit contribution margin for each copy of the book is: | |A) |$5. 5. | |B) |$4. 15. | |C) |$5. 40. | |D) |$7. 15. | |19. |If a company decreases the variable expense per unit while increasing the total fixed expenses, the total expense line relative | | |to its previous position will: | |A) |shift downward and have a steeper slope. | |B) |shift downward and have a flatter slope. | |C) |shift upward and have a flatter slope. | |D) |shift upward and have a steeper slope. | Use the following to answer question 20: A company that makes organic fertilizer has supplied the following data: [pic] |20. |The company's degree of operating leverage is closest to: | |A) |3. 50 | |B) |1. 49 | |C) |9. 54 | |D) |2. 41 | |21. Trumbull Company budgeted sales on account of $120,000 for July, $211,000 for August, and $198,000 for September. Collection | | |experience indicates that none of the budgeted sales will be collected in the month of the sale, 60% will be collected the month| | |after the sale, 36% in the second month, and 4% will be uncollectible. The cash receipts from accounts receivable that should be| | |budgeted for September would be: | |A) |$169,800. | |B) |$147,960. |C) |$197,880. | |D) |$194,760. | Use the following to answer question 22: Young Enterprises has budgeted sales in units for the next five months as follows: [pic] Past experience has shown that the ending inventory for each month should be equal to 10% of the next month's sales in units. The inventory on May 31 fell short of t his goal since it contained only 400 units. The company needs to prepare a Production Budget for the next five months. |22. |The desired ending inventory for August is: | |A) |540 units. |B) |680 units. | |C) |720 units. | |D) |380 units. | Use the following to answer question 23: Balmforth Products, Inc. makes and sells a single product called a Bik. It takes three yards of Material A to make one Bik. Budgeted production of Biks for the next five months is as follows: [pic] The company wants to maintain monthly ending inventories of Material A equal to 20% of the following month's production needs. On January 31, this target had not been attained since only 2,000 yards of Material A were on hand. The cost of Material A is $0. 80 per yard. The company wants to prepare a Direct Materials Purchases Budget. |23. |The desired ending inventory of Material A for the month of March is: | |A) |9,300 yards. | |B) |7,140 yards. | |C) |3,100 yards. | |D) |8,400 yards. | Use the following to answer question 24: The Gomez Company, a merchandising firm, has budgeted its activity for December according to the following information: * Sales at $500,000, all for cash. * Merchandise Inventory on November 30 was $250,000. * The cash balance at December 1 was $20,000. Selling and administrative expenses are budgeted at $50,000 for December and are paid for in cash. * Budgeted depreciation for December is $30,000. * The planned merchandise inventory on December 31 is $260,000. * The cost of goods sold represents 75% of the selling price. * All purchases are paid for in cash. |24. |The budgeted cash receipts for December are: | |A) |$125,000. | |B) |$375,000. | |C) |$530,000. | |D) |$500,000. | Use the following to answer question 25: Young Enterprises has budgeted sales in units for the next five months as follows: [pic] Past experience has shown that the ending inventory for each month should be equal to 10% of the next month's sales in units. The inventory on May 31 fell short of this goal since it contained only 400 units. The company needs to prepare a Production Budget for the next five months. |25. |The beginning inventory in units for September should be: | |A) |460 units. | |B) |6,800 units. | |C) |540 units. | |D) |680 units. | Use the following to answer question 26: May Company, a merchandising firm, has budgeted sales as follows for the third quarter of the year: [pic] Cost of goods sold is equal to 65% of sales. The company wants to maintain a monthly ending inventory equal to 130% of the Cost of Goods Sold for the following month. The inventory on June 30 is less than this ideal since it is only $65,000. The company is now preparing a Merchandise Purchases Budget. |26. |The desired beginning inventory for September is: | |A) |$117,000. |B) |$ 76,050. | |C) |$ 91,000. | |D) |$ 59,150. | Use the following to answer question 27: Smith Company makes and sells a single product called a Pod. Each Pod requires 1. 4 hours of labor at a labor rate of $9. 60 per hour. Smith Company needs to prepare a Direct Labor Budget for the second quarter of the year. |27. |The budgeted direct labor cost per Pod would be: | |A) |$13. 44. | |B) |$9. 60. | |C) |$7. 38. | |D) |$11. 00. | |28. Self-imposed budgets typically are: | |A) |not subject to review by higher levels of management since to do so would contradict the participative aspect of the | | |budgeting processing. | |B) |not subject to review by higher levels of management except in specific cases where the input of higher management is | | |required. | |C) |subject to review by higher levels of management in order to prevent the budgets from becoming too loose. | |D) |not critical to the success of a budgeting program. |29. |Shocker Company's sales budget shows quarterly sales for the next year as follows: | | | | | |[pic] | | |Company policy is to have a finished goods inventory at the end of each quarter equal to 20% of the next quarter's sales. | | |Budgeted production for the second quarter of the next year would be: | |A) |7,200 units. |B) |8,000 units. | |C) |8,800 units. | |D) |8,400 units. | |30. |The Carlquist Company makes and sells a product called Product K. Each unit of Product K sells for $24 dollars and has a unit | | |variable cost of $18. The company has budgete d the following data for November: | | | | | | | | |* Sales of $1,152,000, all in cash. | | | | | | | |* A cash balance on November 1 of $48,000. | | | | | | | | |* Cash disbursements (other than interest) during November of $1,160,000. | | | | | | | |* A minimum cash balance on November 30 of $60,000. | | | | | | | | |If necessary, the company will borrow cash from a bank. The borrowing will be in multiples of $1,000 and will bear interest at | | |2% per month. All borrowing will take place at the beginning of the month. The November interest will be paid in cash during | | |November. | | | | | |The amount of cash that must be borrowed on November 1 to cover all cash disbursements and to obtain the desired November 30 | | |cash balance is: | |A) |$20,000. | |B) |$21,000. | |C) |$37,000. | |D) |$38,000. | Use the following to answer question 31: The following materials standards have been established for a particular product: pic] |31. |What is the materials quantity variance for the month? | |A) |$1,740 U | |B) |$4,350 U | |C) |$4,590 U | |D) |$1,836 U | Use the following to answer question 32: The following standards for variable manufacturing overhead have been established for a company that makes only one product: pic] |32. |What is the variable overhead spending variance for the month? | |A) |$3,010 F | |B) |$3,010 U | |C) |$10,435 U | |D) |$10,435 F | Use the following to answer question 33: The following materials standards have been established for a particular product: [pic] |33. What is the materials quantity variance for the month? | |A) |$5,050 U | |B) |$5,125 U | |C) |$9,292 U | |D) |$9,430 U | Use the following to answer question 34: Arrow Industries employs a standard cost system in which direct materials inventory is carried at standard cost. Arrow has established the following standards for the prime costs of one unit of product. [pic] During May, Arrow purchased 160,000 pounds of direct material at a total cost of $304,000. The total direct labor wages for May were $37,800. Arrow manufactured 19,000 units of product during May using 142,500 pounds of direct material and 5,000 direct labor hours. |34. |The direct material price variance for May is: | |A) |$16,000 favorable. |B) |$16,000 unfavorable. | |C) |$14,250 favorable. | |D) |$14,250 unfavorable. | |35. |Perkins Company, which has a standard cost system, had 500 pounds of raw material X in its inventory at June 1, purchased in May| | |for $1. 20 per pound and carried at a standard cost of $1. 00 per pound. The following information pertains to raw material X for | | |the month of June: | | | | |[pic] | | |The unfavorable materials purchase price variance for raw material X for June was: | |A) |$ 0. | |B) |$130. | |C) |$140. | |D) |$150. | |36. |If variable manu facturing overhead is applied on the basis of direct labor-hours and the variable overhead spending variance is | | |favorable, then the: | |A) |actual variable manufacturing overhead rate exceeded the standard rate. |B) |standard variable manufacturing overhead rate exceeded the actual rate. | |C) |actual direct labor-hours exceeded the standard direct labor-hours allowed for the actual output. | |D) |standard direct labor-hours allowed for the actual output exceeded the actual hours. | Use the following to answer questions 37-38: The Odle Company makes and sells a single product called a Kitt. Odle employs a standard costing system. Each Kitt has a standard cost of 5 pounds of material at $12 per pound and 0. 9 direct labor hours at $15 per hour. There were no inventories of any kind on June 1. During June, the following events occurred: – Purchased 17,000 pounds of material at a total cost of $190,000. – Used 15,000 pounds of material to produce 2,400 Kitts. – Used 1,900 hours of direct labor time at a total cost of $38,000. |37. |To record the incurrence of direct labor cost and its use in production, the general ledger would include what kind of entry to | | |the Labor Rate Variance account? | |A) |$ 9,500 credit. | |B) |$ 9,500 debit. | |C) |$15,200 debit. | |D) |$ 2,000 debit. | |38. |Odle Company purchased material on account. The entry to record the purchase of materials will include a: | |A) |credit to Work in Process. | |B) |debit to Accounts Receivable. | |C) |credit to Accounts Payable. | |D) |credit to Raw Materials Inventory. | Use the following to answer question 39: The Geurtz Company uses standard costing. The company makes and sells a single product called a Roff. The following data are for the month of August: – Actual cost of direct material purchased and used: $65,560 – Material price variance: $5,960 unfavorable – Total materials variance: $22,360 unfavorable – Standard cost per pound of material: $4 Standard cost per direct labor hour: $5 – Actual direct labor hours: 6,500 hours – Labor efficiency variance: $3,500 favorable – Standard number of direct labor hours per unit of Roff: 2 hours – Total labor variance: $400 unfavorable |39. |The labor rate variance was: | |A) |$3,900 favorable. | |B) |$3,900 unfavorable. | |C) |$3,100 unfavor able. | |D) |$3,100 favorable. | |40. |Home Company manufactures tables with vinyl tops. The standard material cost for the vinyl used per Type-R table is $7. 80 based | | |on six square feet of vinyl at a cost of $1. 30 per square foot. A production run of 1,000 tables in January resulted in usage of| | |6,400 square feet of vinyl at a cost of $1. 20 per square foot, a total cost of $7,680. The quantity variance resulting from the | | |above production run was: | |A) |$120 favorable. | |B) |$480 unfavorable. | |C) |$520 unfavorable. | |D) |$640 favorable. | Use the following to answer question 41: The Chase Company has a standard cost system in which manufacturing overhead is applied to units of product on the basis of direct labor-hours (DLHs). The company recorded the following activity and cost data relating to manufacturing overhead for October: [pic] |41. |The fixed overhead budget variance for September was: | |A) |$2,700 favorable. | |B) |$2,700 unfavorable. | |C) |$5,400 favorable. | |D) |$5,400 unfavorable. | Use the following to answer question 42: A furniture manufacturer has a standard costing system based on machine-hours (MHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below: [pic] |42. What was the fixed overhead budget variance for the period to the nearest dollar? | |A) |$2,440 F | |B) |$1,200 U | |C) |$1,999 U | |D) |$704 F | Use the following to answer question 43: A manufacturing company has a standard costing system based on direct labor-hours (DLHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below: [pic] |43. |How much overhead was applied to products during the period to the nearest dollar? | |A) |$79,118 | |B) |$76,035 | |C) |$77,440 | |D) |$80,145 | Use the following to answer question 44: The Chase Company has a standard cost system in which manufacturing overhead is applied to units of product on the basis of direct labor-hours (DLHs). The company recorded the following activity and cost data relating to manufacturing overhead for October: [pic] |44. |The amount of fixed overhead cost contained in the company's overhead budget for September was: | |A) |$45,900. | |B) |$54,768. | |C) |$49,920. | |D) |$47,703. | |45. |Baxter Corporation's master budget calls for the production of 5,000 units of its product monthly. The master budget includes | | |indirect labor of $144,000 annually; Baxter considers indirect labor to be a variable cost. During the month of April, 4,500 | | |units of product were produced, and indirect labor costs of $10,100 were incurred. A performance report utilizing flexible | | |budgeting would report a spending variance for indirect labor of: | |A) |$1,900 unfavorable. | |B) |$700 favorable. | |C) |$1,900 favorable. | |D) |$700 unfavorable. | Use the following to answer question 46: Wicks Company has established a flexible budget for manufacturing overhead based on direct labor-hours. Budgeted costs at 100,000 direct labor-hours are as follows: [pic] |46. |If Wicks Company plans to operate at 90,000 direct labor-hours during the next period, the flexible budget would show indirect | | |labor costs of: | |A) |$144,000. | |B) |$63,000. | |C) |$90,000. | |D) |$81,000. | Use the following to answer questions 47-48: The Steff Company has the following flexible budget (in condensed form) for manufacturing overhead: [pic] The following data concerning production pertain to last year's operations: – The company used a denominator activity of 15,000 direct labor-hours to compute the predetermined overhead rate. – The company made 6,850 units of product and worked 14,200 actual hours during the year. – Actual variable overhead was $15,904 and actual fixed overhead was $30,850 for the year. – The standard direct labor time is two hours per unit of product. |47. The fixed overhead budget variance was: | |A) |$3,450 unfavorable. | |B) |$3,450 favorable. | |C) |$850 unfavorable. | |D) |$1,200 favorable. | |48. |The fixed element of the predetermined overhead rate was (per DLH): | |A) |$4. 15. | |B) |$3. 00. | |C) |$2. 00. | |D) |$1. 15. | Use the following to answer question 49: Barrick Company has established a flexible budget fo r manufacturing overhead based on direct labor-hours. Total budgeted costs at 200,000 direct labor-hours are as follows: [pic] |49. |At an activity level of 170,000 direct labor-hours, the flexible budget for factory overhead would show the budgeted amount for | | |utilities as: | |A) |$ 85,000. | |B) |$140,000. | |C) |$160,000. | |D) |$100,000. | Use the following to answer question 50: The Steff Company has the following flexible budget (in condensed form) for manufacturing overhead: [pic] The following data concerning production pertain to last year's operations: – The company used a denominator activity of 15,000 direct labor-hours to compute the predetermined overhead rate. – The company made 6,850 units of product and worked 14,200 actual hours during the year. – Actual variable overhead was $15,904 and actual fixed overhead was $30,850 for the year. – The standard direct labor time is two hours per unit of product. |50. |The fixed overhead cost applied to work in process was: | |A) |$27,400. | |B) |$30,000. | |C) |$30,850. | |D) |$13,700. | Management Accounting Overall requirement * Explain how management accounting can supply information to assist the management of the organisation. * You are not required to investigate and report on the organisation’s actual management accounting system (even if you can find out). * You are to write a 1500 word report as though you were a management consultant writing to the board of directors. * WE DO NOT WANT ANY NUMBERS UNLESS YOU CREATE THEM TO DEMONSTRATE AN IDEA * This is like assessment 1a – you are to imagine and create! This is a report * It has an introduction A main body (see the next slides) * A conclusion How your marks will build up * Background to the organisation showing good reading of appropriate sources 25% * Review of the nature and role of management accounting 10% * An analysis of the organisation, showing its information needs, the management accounting techniques it might use and decisions it could then make. 50% * The strengths and weaknesses of your analysis  œ for example the additional information you would have liked in order to improve your analysis. 15% Background to the organisation The reason for this is to introduce your organisation (briefly) and to show what a manager in this organisation will do. Later you will show how m. a. helps. * A manager will make decisions about the organisation’s products, processes etc. – therefore your introduction will cover this. * This introduction will reveal the kind of problems that your organisation faces and must overcome. * We do not want the history of the organisation and any information that you will not use later. * Choose your organisation carefully – one that you can understand. You need to be able to imagine the kinds of decisions that a manager might make. Review of the nature and role of management accounting * A definition (with reference) * Some idea of what management accounting does and what it does not do. * Some examples of the techniques and methods of m. a. * You have been studying this since week 5 and so it should not be a problem * DO NOT TRY TO BE TOO CLEVER. IN PREVIOUS YEARS STUDENTS HAVE MENTIONED ABC, JUST IN TIME AND THROUGHPUT ACCOUNTING. Do not do this as you probably do not understand these techniques and will only show that this is so. Keep to what you know! An analysis of the organisation, showing its information needs, the management accounting techniques it might use and decisions it could then make. * This is the hard part that attracts the most marks * You are to link part 1 and part 2 – you organisation’s needs to the techniques and methods of management accounting * What does m. a. Do that will help this organisation? * How can it improve processes? * How can it compete better? * How can it choose between products? * How can it use m. a. for pricing? Planning, controlling, motivating, organising etc * Difficult – but you are applying what you have learned to the problems of the organisation. The strengths and weaknesses of your analysis * This was badly done in assessment 1b * WE DO NOT WANT THE S&W OF THE COMPANY * What aspects of your analysis are strong. Where do you feel that your recommendations are strong and secure? Give examples. * Where do you feel your recommendations are weak perhaps due to lack of information about the company or lack of your knowledge and experience of management accounting. Give examples. Management Accounting Running Head: MANAGEMENT ACCOUNTING The Management Accountant in Business [Name of the Writer] [Name of the Institution] The Management Accountant in Business Introduction Tesco Public Limited Company is a merchandising retailer and a grocery retailer multinational chain which has it’s headquarter in Cheshunt in the United Kingdom. Tesco as compared to its counterparts, Walmart and Carrefour, is the world’s third largest retail store with regard to the revenues that it generates. Tesco stands as the second largest retail stores of the world with regard to its profits, with Walmart being the first.Tesco has its retail stores spread across almost 14 countries of the world of Asia, North America and Europe. Tesco public limited company is the market leader in its home country United Kingdom with a market share of almost 30%. Tesco was founded by Jack Cohen in 1919 which operated as a group of stalls in the market. After its inception today Tesco plc operates across diverse areas of clothing, electronics, furniture, books, financial services and internet services. Tesco is listed at the London Stock Exchange and is a part of the FTSE 100 index having a market capital of approximately ? 24. billion and a symbol of TSCO. Tesco has been operating with seven business segments, namely, Tesco Superstores, Tesco express, Tesco metro, Tesco extra, One stop, Tesco Homeplus, and Dobbies. The market share of Tesco as recorded in 2012 was 30. 2% which was the highest as compared to its European counterparts. Tesco has developed its marketing headline to be, â€Å"Every little helps†. The tag line is represented in all the print and TV advertisements of Tesco which represents the value that Tesco offers to its customers against the price that they pay, with the value being more than the price of the products.Tesco not only works for company profits but also for the community at large in which it operates. Tesco has a value of contributing 1. 8% of its profi ts to the charitable organizations. Tesco has a culture based on its values of trust and respect. Tesco employees and management believe that the customers would come back to visit the stores for their shopping if they are satisfied with the products and the service. Tesco believes that the success of the company as a whole depends on the contribution of the employees and the customer satisfaction.Management accounting is also used in making strategic management decisions (Dixon & Smith, 1993) . Tesco has seven core strategies on which it operates in the long run. The foremost strategy of Tesco is to grow the United Kingdom core business from where it started its operations and expanded globally. The United Kingdom being the largest business operating unit of Tesco generates the largest share of revenues and profits; therefore Tesco needs to develop this major segment of the business.Tesco also has a goal of being the world’s largest retailer which it has been able to achieve since 1997 and has become the leading retail store in almost eight of its international retail stores. Tesco was originally a food retailer when it started operating and from then onwards it has aimed at becoming the strongest brand in the non-food items as well. Besides the growth in the United Kingdom segment Tesco has also a strategy of growing its retail stores in the other markets in which it has presence. Tesco believes in serving the community and working for its welfare so that the corporate responsibility of Tesco is fulfilled.Tesco also aims to make high value brands at very competitive prices. Tesco aims to build brands that are highly appealing to the customers and also in providing the customers with quality products. Tesco also builds teams that are very committed to their work and has developed leaders who are dedicated and hard working. The leaders at Tesco have a major responsibility of building teams and working for the attainment of the organizational goals (Tesc o, 2013). Tesco works closely with the customers and continuously collects their feedback by engaging focus groups in the feedback collection process.The research center facilitates the identification of the research areas and the areas of concern in the profit centers. The customer feedback collected enables Tesco to make changes to the business processes so that they better meet the customer needs. Tesco also works closely with its suppliers to develop the best brands and also bring in a variety of offers for the customers. Tesco works with a number of suppliers including the FMCG companies and the local suppliers providing goods for the regional retail stores.Management Accounting Functions at Tesco Management Accounting is distinguished from Financial Accounting as being an accounting constituent that is concerned with the measurement, analysis and the reporting of information regarding the financial and non-financial operations of the business, and taking decisions which are ne cessary for the attainment of goals of the organization (Bhimani & Langfield, 2007). Management accounting is concerned with the attainment of organizational goals and for serving the strategies of the organization (Durden, n. , p. 2). Hence, management accounting is concerned with the accounting information which is intended to be used within the organization and for the achievement of the goals of the organization. Management accounting is used in organizations to make decisions regarding the competitiveness of the business by the collection, processing, and the communication of the information which will hence help the management of the business in planning, controlling and evaluating the processes of the business and the strategies of the company.The controllers in the large organizations are basically the leaders who run the management accounting function of the company and the controller then reports the accounting information to the finance heads which helps them in taking or ganizational wide decisions. At Tesco the management accountants are known for having a number of responsibilities including the collection of information from the different cost and profit centers, evaluation of the information, and the identification of the appropriate solutions to the problems faced by the cost or profit centers.The management accountants have a responsibility of identifying the appropriate and the most cost efficient distribution systems. This role of management accounting in Tesco is related to the establishment and administration of effective control mechanisms. Another management accounting function of Tesco is the sales forecasting, which is related to the identification of the needs of the customers, sales volumes and the effects of seasonal fluctuations on the sales. The management accountants have also the responsibility of ordering the right quantity of supplies at the right time.The management accountants are also responsible for developing cost, sales and profit budgets and to make capital investment plans. The management accountants also are responsible for the comparison of the plans and budgets with the benchmarks set and the identification of the discrepancies. The management accountants work towards taking the corrective measures in case of variances between the actual and the standard budgets. The task of standard costing is assigned to them which they use to take decisions which are useful for achieving the organizational goals.The group strategy section of the financial reports shows the management roles in Tesco. The customer researches are conducted to know the extent of their satisfaction and their needs. The management accountants also plan the growth rates in the different markets across the world. The management roles are also highlighted in the capital expenditures section of the annual reports of Tesco. The capital expenditure plans are made by the management accountants. Tesco has planned for major capital expend itures which will enable it to diversify and move into expansion phases worldwide throughout all its retail chains.The management accountants are also responsible for evaluating and critically analyzing the cash position of Tesco. The management accountants are charged with the responsibility of generating cash sources and reducing the capital expenditures of the retail stores. The working capital is reduced in 2012 which has enabled Tesco to have increased cash inflows (TESCO, 2012). Functions of Modern Management Accounting at Tesco The roles of management accountants in the modern era have increased and have been very diverse in the organizations.The management accountants have many responsibilities including the formulation of accounting policies, statistical reports, administration of tax policies, coordination of the reports, preparation and the interpretation of the annual reports and the financial statements of organizations, audit of the accounting transactions and the reco rds, compilation of the business costs, costing and planning of inventories, and the interpretation of the statistical reports of the organization.At Tesco the management accountants are engaged in making budgets including annual as well as monthly budgets. The budgets prepared are used for planning the resources and the supplies required for the operations of the business. The management accountants at Tesco are responsible for looking ahead and predicting the future of the business. The management accountants prepare reports which are used within Tesco and are intended for internal use by the management rather than the outside stakeholders.The reports prepared are kept confidential because they serve as the basis of the development of the strategies of Tesco. The management accountants have a dual reporting role within Tesco in that they are responsible for developing and managing the teams within Tesco and at the same time reporting to the chief financial officers and the financi al departments. The management accountants at Tesco provide information related to the forecasts and plans, they perform variance analysis and monitor the cost centers.Therefore they serve to be the controllers as well as the financial planners for Tesco. The management accountants gather financial information from all the department of Tesco, organize the data, analyze and interpret and then report their findings to the financial departments of Tesco. Therefore, the management accounting plays a very key role in Tesco. The management accounting over the years have also developed many management systems (Anthony & Govindarajan, 2007).The management accountants are reported to by all the accounting departments and they are responsible for presenting their financial suggestions to the financial executives for the implementation of the plans. The management accountants at Tesco are therefore charged with the overall responsibility of managing and interpreting very large amounts of acco unting information, and then reporting their findings to the chief financial officers. References Tesco PLC. (2013). Our Strategy. Retrieved from: http://www. tescoplc. com/index. asp? pageid=12 Tesco PLC. (2012).Annual Report and Financial Statements. Retrieved from: http://www. tescoplc. com/files/reports/ar2012/files/pdf/tesco_annual_report_2012. pdf Durden, C. (n. d). The role of management accounting in organizational Control systems: preliminary evidence of an organic Approach. pp. 1-50. Retrieved from: http://www. afaanz. org/openconf/2008/modules/request. php? module=oc_proceedings&action=view. php&a=Accept+as+Paper&id=570 Anthony, R. N. , & Govindarajan, V. (2007). Management control systems. USA: Irwin/McGraw-Hill. Bhimani, A. , & Langfield-Smith, K. (2007). Management Accounting Running Head: MANAGEMENT ACCOUNTING The Management Accountant in Business [Name of the Writer] [Name of the Institution] The Management Accountant in Business Introduction Tesco Public Limited Company is a merchandising retailer and a grocery retailer multinational chain which has it’s headquarter in Cheshunt in the United Kingdom. Tesco as compared to its counterparts, Walmart and Carrefour, is the world’s third largest retail store with regard to the revenues that it generates. Tesco stands as the second largest retail stores of the world with regard to its profits, with Walmart being the first.Tesco has its retail stores spread across almost 14 countries of the world of Asia, North America and Europe. Tesco public limited company is the market leader in its home country United Kingdom with a market share of almost 30%. Tesco was founded by Jack Cohen in 1919 which operated as a group of stalls in the market. After its inception today Tesco plc operates across diverse areas of clothing, electronics, furniture, books, financial services and internet services. Tesco is listed at the London Stock Exchange and is a part of the FTSE 100 index having a market capital of approximately ? 24. billion and a symbol of TSCO. Tesco has been operating with seven business segments, namely, Tesco Superstores, Tesco express, Tesco metro, Tesco extra, One stop, Tesco Homeplus, and Dobbies. The market share of Tesco as recorded in 2012 was 30. 2% which was the highest as compared to its European counterparts. Tesco has developed its marketing headline to be, â€Å"Every little helps†. The tag line is represented in all the print and TV advertisements of Tesco which represents the value that Tesco offers to its customers against the price that they pay, with the value being more than the price of the products.Tesco not only works for company profits but also for the community at large in which it operates. Tesco has a value of contributing 1. 8% of its profi ts to the charitable organizations. Tesco has a culture based on its values of trust and respect. Tesco employees and management believe that the customers would come back to visit the stores for their shopping if they are satisfied with the products and the service. Tesco believes that the success of the company as a whole depends on the contribution of the employees and the customer satisfaction.Management accounting is also used in making strategic management decisions (Dixon & Smith, 1993) . Tesco has seven core strategies on which it operates in the long run. The foremost strategy of Tesco is to grow the United Kingdom core business from where it started its operations and expanded globally. The United Kingdom being the largest business operating unit of Tesco generates the largest share of revenues and profits; therefore Tesco needs to develop this major segment of the business.Tesco also has a goal of being the world’s largest retailer which it has been able to achieve since 1997 and has become the leading retail store in almost eight of its international retail stores. Tesco was originally a food retailer when it started operating and from then onwards it has aimed at becoming the strongest brand in the non-food items as well. Besides the growth in the United Kingdom segment Tesco has also a strategy of growing its retail stores in the other markets in which it has presence. Tesco believes in serving the community and working for its welfare so that the corporate responsibility of Tesco is fulfilled.Tesco also aims to make high value brands at very competitive prices. Tesco aims to build brands that are highly appealing to the customers and also in providing the customers with quality products. Tesco also builds teams that are very committed to their work and has developed leaders who are dedicated and hard working. The leaders at Tesco have a major responsibility of building teams and working for the attainment of the organizational goals (Tesc o, 2013). Tesco works closely with the customers and continuously collects their feedback by engaging focus groups in the feedback collection process.The research center facilitates the identification of the research areas and the areas of concern in the profit centers. The customer feedback collected enables Tesco to make changes to the business processes so that they better meet the customer needs. Tesco also works closely with its suppliers to develop the best brands and also bring in a variety of offers for the customers. Tesco works with a number of suppliers including the FMCG companies and the local suppliers providing goods for the regional retail stores.Management Accounting Functions at Tesco Management Accounting is distinguished from Financial Accounting as being an accounting constituent that is concerned with the measurement, analysis and the reporting of information regarding the financial and non-financial operations of the business, and taking decisions which are ne cessary for the attainment of goals of the organization (Bhimani & Langfield, 2007). Management accounting is concerned with the attainment of organizational goals and for serving the strategies of the organization (Durden, n. , p. 2). Hence, management accounting is concerned with the accounting information which is intended to be used within the organization and for the achievement of the goals of the organization. Management accounting is used in organizations to make decisions regarding the competitiveness of the business by the collection, processing, and the communication of the information which will hence help the management of the business in planning, controlling and evaluating the processes of the business and the strategies of the company.The controllers in the large organizations are basically the leaders who run the management accounting function of the company and the controller then reports the accounting information to the finance heads which helps them in taking or ganizational wide decisions. At Tesco the management accountants are known for having a number of responsibilities including the collection of information from the different cost and profit centers, evaluation of the information, and the identification of the appropriate solutions to the problems faced by the cost or profit centers.The management accountants have a responsibility of identifying the appropriate and the most cost efficient distribution systems. This role of management accounting in Tesco is related to the establishment and administration of effective control mechanisms. Another management accounting function of Tesco is the sales forecasting, which is related to the identification of the needs of the customers, sales volumes and the effects of seasonal fluctuations on the sales. The management accountants have also the responsibility of ordering the right quantity of supplies at the right time.The management accountants are also responsible for developing cost, sales and profit budgets and to make capital investment plans. The management accountants also are responsible for the comparison of the plans and budgets with the benchmarks set and the identification of the discrepancies. The management accountants work towards taking the corrective measures in case of variances between the actual and the standard budgets. The task of standard costing is assigned to them which they use to take decisions which are useful for achieving the organizational goals.The group strategy section of the financial reports shows the management roles in Tesco. The customer researches are conducted to know the extent of their satisfaction and their needs. The management accountants also plan the growth rates in the different markets across the world. The management roles are also highlighted in the capital expenditures section of the annual reports of Tesco. The capital expenditure plans are made by the management accountants. Tesco has planned for major capital expend itures which will enable it to diversify and move into expansion phases worldwide throughout all its retail chains.The management accountants are also responsible for evaluating and critically analyzing the cash position of Tesco. The management accountants are charged with the responsibility of generating cash sources and reducing the capital expenditures of the retail stores. The working capital is reduced in 2012 which has enabled Tesco to have increased cash inflows (TESCO, 2012). Functions of Modern Management Accounting at Tesco The roles of management accountants in the modern era have increased and have been very diverse in the organizations.The management accountants have many responsibilities including the formulation of accounting policies, statistical reports, administration of tax policies, coordination of the reports, preparation and the interpretation of the annual reports and the financial statements of organizations, audit of the accounting transactions and the reco rds, compilation of the business costs, costing and planning of inventories, and the interpretation of the statistical reports of the organization.At Tesco the management accountants are engaged in making budgets including annual as well as monthly budgets. The budgets prepared are used for planning the resources and the supplies required for the operations of the business. The management accountants at Tesco are responsible for looking ahead and predicting the future of the business. The management accountants prepare reports which are used within Tesco and are intended for internal use by the management rather than the outside stakeholders.The reports prepared are kept confidential because they serve as the basis of the development of the strategies of Tesco. The management accountants have a dual reporting role within Tesco in that they are responsible for developing and managing the teams within Tesco and at the same time reporting to the chief financial officers and the financi al departments. The management accountants at Tesco provide information related to the forecasts and plans, they perform variance analysis and monitor the cost centers.Therefore they serve to be the controllers as well as the financial planners for Tesco. The management accountants gather financial information from all the department of Tesco, organize the data, analyze and interpret and then report their findings to the financial departments of Tesco. Therefore, the management accounting plays a very key role in Tesco. The management accounting over the years have also developed many management systems (Anthony & Govindarajan, 2007).The management accountants are reported to by all the accounting departments and they are responsible for presenting their financial suggestions to the financial executives for the implementation of the plans. The management accountants at Tesco are therefore charged with the overall responsibility of managing and interpreting very large amounts of acco unting information, and then reporting their findings to the chief financial officers. References Tesco PLC. (2013). Our Strategy. Retrieved from: http://www. tescoplc. com/index. asp? pageid=12 Tesco PLC. (2012).Annual Report and Financial Statements. Retrieved from: http://www. tescoplc. com/files/reports/ar2012/files/pdf/tesco_annual_report_2012. pdf Durden, C. (n. d). The role of management accounting in organizational Control systems: preliminary evidence of an organic Approach. pp. 1-50. Retrieved from: http://www. afaanz. org/openconf/2008/modules/request. php? module=oc_proceedings&action=view. php&a=Accept+as+Paper&id=570 Anthony, R. N. , & Govindarajan, V. (2007). Management control systems. USA: Irwin/McGraw-Hill. Bhimani, A. , & Langfield-Smith, K. (2007). Management Accounting Running Head: MANAGEMENT ACCOUNTING The Management Accountant in Business [Name of the Writer] [Name of the Institution] The Management Accountant in Business Introduction Tesco Public Limited Company is a merchandising retailer and a grocery retailer multinational chain which has it’s headquarter in Cheshunt in the United Kingdom. Tesco as compared to its counterparts, Walmart and Carrefour, is the world’s third largest retail store with regard to the revenues that it generates. Tesco stands as the second largest retail stores of the world with regard to its profits, with Walmart being the first.Tesco has its retail stores spread across almost 14 countries of the world of Asia, North America and Europe. Tesco public limited company is the market leader in its home country United Kingdom with a market share of almost 30%. Tesco was founded by Jack Cohen in 1919 which operated as a group of stalls in the market. After its inception today Tesco plc operates across diverse areas of clothing, electronics, furniture, books, financial services and internet services. Tesco is listed at the London Stock Exchange and is a part of the FTSE 100 index having a market capital of approximately ? 24. billion and a symbol of TSCO. Tesco has been operating with seven business segments, namely, Tesco Superstores, Tesco express, Tesco metro, Tesco extra, One stop, Tesco Homeplus, and Dobbies. The market share of Tesco as recorded in 2012 was 30. 2% which was the highest as compared to its European counterparts. Tesco has developed its marketing headline to be, â€Å"Every little helps†. The tag line is represented in all the print and TV advertisements of Tesco which represents the value that Tesco offers to its customers against the price that they pay, with the value being more than the price of the products.Tesco not only works for company profits but also for the community at large in which it operates. Tesco has a value of contributing 1. 8% of its profi ts to the charitable organizations. Tesco has a culture based on its values of trust and respect. Tesco employees and management believe that the customers would come back to visit the stores for their shopping if they are satisfied with the products and the service. Tesco believes that the success of the company as a whole depends on the contribution of the employees and the customer satisfaction.Management accounting is also used in making strategic management decisions (Dixon & Smith, 1993) . Tesco has seven core strategies on which it operates in the long run. The foremost strategy of Tesco is to grow the United Kingdom core business from where it started its operations and expanded globally. The United Kingdom being the largest business operating unit of Tesco generates the largest share of revenues and profits; therefore Tesco needs to develop this major segment of the business.Tesco also has a goal of being the world’s largest retailer which it has been able to achieve since 1997 and has become the leading retail store in almost eight of its international retail stores. Tesco was originally a food retailer when it started operating and from then onwards it has aimed at becoming the strongest brand in the non-food items as well. Besides the growth in the United Kingdom segment Tesco has also a strategy of growing its retail stores in the other markets in which it has presence. Tesco believes in serving the community and working for its welfare so that the corporate responsibility of Tesco is fulfilled.Tesco also aims to make high value brands at very competitive prices. Tesco aims to build brands that are highly appealing to the customers and also in providing the customers with quality products. Tesco also builds teams that are very committed to their work and has developed leaders who are dedicated and hard working. The leaders at Tesco have a major responsibility of building teams and working for the attainment of the organizational goals (Tesc o, 2013). Tesco works closely with the customers and continuously collects their feedback by engaging focus groups in the feedback collection process.The research center facilitates the identification of the research areas and the areas of concern in the profit centers. The customer feedback collected enables Tesco to make changes to the business processes so that they better meet the customer needs. Tesco also works closely with its suppliers to develop the best brands and also bring in a variety of offers for the customers. Tesco works with a number of suppliers including the FMCG companies and the local suppliers providing goods for the regional retail stores.Management Accounting Functions at Tesco Management Accounting is distinguished from Financial Accounting as being an accounting constituent that is concerned with the measurement, analysis and the reporting of information regarding the financial and non-financial operations of the business, and taking decisions which are ne cessary for the attainment of goals of the organization (Bhimani & Langfield, 2007). Management accounting is concerned with the attainment of organizational goals and for serving the strategies of the organization (Durden, n. , p. 2). Hence, management accounting is concerned with the accounting information which is intended to be used within the organization and for the achievement of the goals of the organization. Management accounting is used in organizations to make decisions regarding the competitiveness of the business by the collection, processing, and the communication of the information which will hence help the management of the business in planning, controlling and evaluating the processes of the business and the strategies of the company.The controllers in the large organizations are basically the leaders who run the management accounting function of the company and the controller then reports the accounting information to the finance heads which helps them in taking or ganizational wide decisions. At Tesco the management accountants are known for having a number of responsibilities including the collection of information from the different cost and profit centers, evaluation of the information, and the identification of the appropriate solutions to the problems faced by the cost or profit centers.The management accountants have a responsibility of identifying the appropriate and the most cost efficient distribution systems. This role of management accounting in Tesco is related to the establishment and administration of effective control mechanisms. Another management accounting function of Tesco is the sales forecasting, which is related to the identification of the needs of the customers, sales volumes and the effects of seasonal fluctuations on the sales. The management accountants have also the responsibility of ordering the right quantity of supplies at the right time.The management accountants are also responsible for developing cost, sales and profit budgets and to make capital investment plans. The management accountants also are responsible for the comparison of the plans and budgets with the benchmarks set and the identification of the discrepancies. The management accountants work towards taking the corrective measures in case of variances between the actual and the standard budgets. The task of standard costing is assigned to them which they use to take decisions which are useful for achieving the organizational goals.The group strategy section of the financial reports shows the management roles in Tesco. The customer researches are conducted to know the extent of their satisfaction and their needs. The management accountants also plan the growth rates in the different markets across the world. The management roles are also highlighted in the capital expenditures section of the annual reports of Tesco. The capital expenditure plans are made by the management accountants. Tesco has planned for major capital expend itures which will enable it to diversify and move into expansion phases worldwide throughout all its retail chains.The management accountants are also responsible for evaluating and critically analyzing the cash position of Tesco. The management accountants are charged with the responsibility of generating cash sources and reducing the capital expenditures of the retail stores. The working capital is reduced in 2012 which has enabled Tesco to have increased cash inflows (TESCO, 2012). Functions of Modern Management Accounting at Tesco The roles of management accountants in the modern era have increased and have been very diverse in the organizations.The management accountants have many responsibilities including the formulation of accounting policies, statistical reports, administration of tax policies, coordination of the reports, preparation and the interpretation of the annual reports and the financial statements of organizations, audit of the accounting transactions and the reco rds, compilation of the business costs, costing and planning of inventories, and the interpretation of the statistical reports of the organization.At Tesco the management accountants are engaged in making budgets including annual as well as monthly budgets. The budgets prepared are used for planning the resources and the supplies required for the operations of the business. The management accountants at Tesco are responsible for looking ahead and predicting the future of the business. The management accountants prepare reports which are used within Tesco and are intended for internal use by the management rather than the outside stakeholders.The reports prepared are kept confidential because they serve as the basis of the development of the strategies of Tesco. The management accountants have a dual reporting role within Tesco in that they are responsible for developing and managing the teams within Tesco and at the same time reporting to the chief financial officers and the financi al departments. The management accountants at Tesco provide information related to the forecasts and plans, they perform variance analysis and monitor the cost centers.Therefore they serve to be the controllers as well as the financial planners for Tesco. The management accountants gather financial information from all the department of Tesco, organize the data, analyze and interpret and then report their findings to the financial departments of Tesco. Therefore, the management accounting plays a very key role in Tesco. The management accounting over the years have also developed many management systems (Anthony & Govindarajan, 2007).The management accountants are reported to by all the accounting departments and they are responsible for presenting their financial suggestions to the financial executives for the implementation of the plans. The management accountants at Tesco are therefore charged with the overall responsibility of managing and interpreting very large amounts of acco unting information, and then reporting their findings to the chief financial officers. References Tesco PLC. (2013). Our Strategy. Retrieved from: http://www. tescoplc. com/index. asp? pageid=12 Tesco PLC. (2012).Annual Report and Financial Statements. Retrieved from: http://www. tescoplc. com/files/reports/ar2012/files/pdf/tesco_annual_report_2012. pdf Durden, C. (n. d). The role of management accounting in organizational Control systems: preliminary evidence of an organic Approach. pp. 1-50. Retrieved from: http://www. afaanz. org/openconf/2008/modules/request. php? module=oc_proceedings&action=view. php&a=Accept+as+Paper&id=570 Anthony, R. N. , & Govindarajan, V. (2007). Management control systems. USA: Irwin/McGraw-Hill. Bhimani, A. , & Langfield-Smith, K. (2007).