Cost Management Amp Strategic Decision Making

7/28/2019 Cost Management Amp Strategic Decision Making

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Cost Management andStrategic Decision Making

Evaluating Opportunities

and Leading Change


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There will be one or two mid-term exams (for 30 percentof your grade) and a comprehensive final exam (40percent of your grade).

Questions in exams are a combination of essays, multiple-choice and problems.

These questions require specific understanding of thematerials discussed in the textbook, class lectures andhandout materials.

Note: Student must use their own calculators for all

quizzes and exams.

TESTS

2


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There will be MANY unannounced quizzes during the semester. Each quiz contains one or more problem(s) from the most

recently lectured materials.

These quizzes are very similar to the problems at the end of

each chapter of your textbook with minor changes. These quizzes and projects count for 20 percent of your grade.

FCQ

3


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Every student is required to participate in the classdiscussions.

Students are encouraged to bring in to the class

articles from business journals.

During the first 15 minutes of every class meeting

students are allowed to discuss those article(s) in the

class.

Other students may comment or question thepresenter.

CLASS PARTICIPATION

4


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Attendance is as per Institute policy Do not enter after the class has started

Once Seated cannot leave the class, however, mayleave the class immediately after attendance

Your attendance is required for all announced examsand unannounced quizzes, however

ATTENDANCE POLICY

5


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Accounting

information

The accounting

process

Decision makers

Economic

activities

Actions

(decisions)

Accounting

links decision

makers witheconomic

activities andwith the results of

their decisions.


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Types of Accounting

Information

Financial

Managerial

Tax


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Information

Users

Investors

Creditors

ManagersOwners

Customers

EmployeesRegulatory

agencies-SEC

-IRS

-EPA

Decision Support

CVP analysisPerformanceevaluation

Incrementalanalysis

Budgeting

Capitalallocation

Earnings pershare

Ratio analysis

Information System

Cost & Revenue

Determination

Job costingProcess costing

ABC

Sales

Assets &

Liabilities

Plant andequipment

Loans & equity

Receivables,payables & cash

Cash Flows

From operations

From financingFrom investing


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Distinctions Between Management

Accounting and Financial Accounting

Management

Accounting

Organization managers

Costs versus benefits

Influence on managerial

behaviour

Future orientation

Flexible

Detailed

Less sharply defined

Financial

Accounting

External parties

G.A.A.P.

Measurement of

economic activity

Past orientation

Less flexible

Summary reports

More sharply defined

Primary Users

Choices

Behavioural

Implications

Time Focus

Time Span

Reports

Activities


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The Past

Cost Accounting

Focused On

Recording Data Measured And Reported Costs


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Information about decision-making

authority, for decision-making support, and

for evaluating and rewarding decision-makingperformance.

Information useful in assessing

both the past performance and futuredirections of the enterprise and information

from external and internal sources.

Information useful to help the enterprise

achieve its goal, objectives and mission.

Objectives

ofManagerial

Reporting


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Characteristics of Management

Accounting Information

Timeliness

Identify Decision-

Making Authority

Oriented Toward

Future

Measures -

Efficiency and

Effectiveness

A Means to an

End


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Management Accounting for Managers

Management accounting exists because managersrequire information to make decisions

Primary focus of management accounting istowards users within an organization

Management accounting does not exist to generatedata, but it exists because managers requireinformation for decisions

Framework for Management Accounting

Strategic Planning

Management Control

Operational Control

Focus on organizations objectives

Effectiveness and efficiency of resource use

Effectiveness and efficiency of tasks


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Frameworks for Management Accounting

OPERATIONAL MANAGEMENT STRATEGICCONTROL CONTROL PLANNING

Accounts receivable Budget analysis Tanker fleet mix

Order entry Short-term Warehouse and

forecasting factory location

Structured Inventory reordering Engineered costs

Inventory control Variance analysis Mergers and acquisitions

Semi-

Structured Production scheduling Overall budget Capital acquisition analysis

Bond trading Budget preparation New product planning

Cash management

Unstructured PERT COST systems Sales and production R and D planning


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Management Decision Process

1. Identify the problem.

2. Perform the necessary quantitative and qualitative

analyses.

3. Identify alternative solutions to the problem.

4. Evaluate the alternative solutions.

5. Recommend one of the alternative solutions.

6. Implement the recommendation.


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Management

Major Means:Accounting Information

1. Problem-solving

information

2. Attention-directing

information

3. Scorekeeping

information

Major Ends:Helping Decisions

1. Managers for long-range planning

and special decisions

2. Managers for planning and

controlling routine operations

3. Outsiders for investors, tax

collectors, regulators & others


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Planning and Controlling

Planning involves setting objectives and themeans to their attainment What is desired? When and how is it to be accomplished? How is success to be evaluated?

Controlling involves the implementation of plansand the use of feedback to monitorachievements

Planning

ActionEvaluation


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Product Life Cycle The various stages through which a product passes,

from conception and development throughintroduction into the market through maturationand, finally, withdrawal from the market

Product

Development

Introduction to

MarketMature

Market

Phase-Out

of Product

Salesover

Typical

Product

Life Cycle


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The Value Chain Value chain is the set of business functions that add value to the

products or services of an organization

CUSTOMER

FOCUS

Research

and

Development

Marketing

Production

Product& Service

Process

Design

Distribution

Customer

Service


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Question

What is now the primary objective of costmanagement?


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?

What is Cost Management?

Characteristics of Cost

Management


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?

What is Cost Management?

In addition to measuring

and reporting costs, it is

a philosophy, an attitude,

and a set of techniquesto

create more customer

value at a lower cost.

Characteristics of Cost

Management


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The Future

Cost Management

Will Provide Information for DecisionsRelated To:

? ? ?


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The Future

Cost Management


ImprovingProducts,

Services,and Use ofResources

? ?


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The Future

Cost Management


ImprovingProducts,Services,and Use ofResources

SupportingStrategies ?


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The Future

Cost Management


ImprovingProducts,Services,and Use ofResources

SupportingStrategiesSystematically

ReducingCosts


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Managerial accounting is the process of

Identifying

Measuring Analyzing

Interpreting

CommunicatingInformation in pursuit an organizations

goals

Define Managerial Accounting


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Managerial versus Financial

Accounting

Accounting System

(accumulates financial and

managerial accounting data)

Managerial Accounting

Information for decision

making, planning, and

controlling anorganizations

operations.

Financial Accounting

Published financial

statements and other

financial reports.

Internal

Users

External

Users


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How Managerial Accounting Adds

Value to the Organization

Providinginformation for decision making andplanning.

Assisting managers in directing and controlling

activities. Motivating managers and other employees

towards organizations goals.

Measuring performance of activities, managers,and other employees.

Assessingthe organizations competitive position.


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Managing Resources, Activities,

and People

An organization . . .

Acquires Resources

Hires People

Organized set

of activities

Decision

Making

Planning

Directing

Controlling


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Work of Management

Planning

Controlling

Directing and

Motivating


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Planning

Identifyalternatives.

Selectalternative that doesthe best job of furtheringorganizations objectives.

Develop budgets to guideprogress toward theselected alternative.


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Directing and Motivating

Directing and motivating involves managing day-to-day activities to keep the organization runningsmoothly.

Employee work assignments. Routine problem solving.

Conflict resolution.

Effective communications.


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Controlling

The control function ensures

that plans are being followed.

Feedback in the form of performance reportsthat compare actual results with the budget

are an essential part of the control function.

Exh.

1 1


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Planning and Control Cycle

Decision

Making

Formulating long-and

short-term plans

(Planning)

Measuring

performance

(Controlling)

Implementing

plans (Directing

and Motivating)

Comparing actual

to planned

performance

(Controlling)

Begin

1-1


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Corporate Organization Chart

Purchasing Personnel Vice President

Operations

Treasurer Controller

Chief Financial

Officer

President

Board of Directors

Organizational Structure

Decentralization is the delegation of decision-makingauthority throughout an organization.


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The Chief Financial Officer (CFO)

A member of the top management teamresponsible for:

Providing timely and relevant data to support

planning and control activities. Preparing financial statements for external users.


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Controller

The chief managerial and financial accountant responsibilityfor:

Supervising accounting personnel

Preparation of information and reports, managerialand financial

Analysis of accounting information

Planning and decision making


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Treasurer

Responsible for raising capital and safeguarding theorganizations assets.

Supervisesrelationships with financial institutions. Work with investors and potential

investors.

Manages investments. Establishes credit policies. Manages insurance coverage


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Internal Auditor

Responsible for reviewing accountingprocedures, records, and reports in both thecontrollers and the treasurers area of

responsibility.

Expresses an opinion to top managementregarding the effectiveness of the

organizations accounting system.


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Who Are Cost Managers?

They serve as communicators of companyvalues to employees.

They have diverse educational backgrounds.

They need broad knowledge of the organization.

Competence is a given!


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Who Are Cost Managers?

They

exhibit

attributes

of

AWARENESS

HONESTY

OPENNESS

DILIGENCE

CREATIVITY


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Characteristics of

Cost-Management Analysts

Cost analysts use cost

accounting and other data to?


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Characteristics of


Cost analysts use cost

accounting and other data to:

Support

strategies

Improve

products

Improve

services

Reduce

costs

Improve

resource use


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What are the Characteristics

of

Cost-Management Analysts?


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Characteristics of


Integrity

Ability to work

in cross-functional

teams

Broad knowledgeof the business


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Ethical Standards for Cost-

Management Analysts

Cost-management analysts must maintain high

standards of ethical behavior because they cancontrol the information used for important

strategic management decisions.


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Professional Ethics

Competence

ConfidentialityIntegrity

Credibility


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Competence

Follow applicable laws,

regulations and standards.

Maintain professional

competence.

Prepare complete and clear reports

after appropriate analysis.

Ethical Behavior


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Confidentiality

Do not disclose confidentialinformation unless legally

obligated to do so.

Ensure that subordinates do not

disclose confidential information.

Do not useconfidential

information for

personal

advantage.

Ethical Behavior


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Avoid conflicts of interest

and advise others of

potential conflicts.

Recognize and

communicate personal and

professional limitations.

Do not subvert

organizations

legitimate

objectives.

Integrity

Ethical Behavior


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Integrity

Avoid activities that could affect

your ability to perform duties.

Communicate unfavorable as well

as favorable information.

Refrain fromactivities that

could discredit

the profession.

Refuse gifts orfavors that might

influence

behavior.

Ethical Behavior


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Communicate information

fairly and objectively.

Disclose all information

that might be useful to

management.

Objectivity

Ethical Behavior


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Team Focus

Earlier Management responsibilities

were defined by their FUNCTIONAL

ROLES FUNCTIONAL ROLES - Narrowly Defined

- Jobs That Focus On Specific Activities


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Team Focus

Now Decisions are made byCROSSFUNCTIONAL MANAGEMENT TEAMS

CROSSFUNCTIONAL MANAGEMENT TEAMS -Involves bringing together individuals fromdiverse functions and backgrounds to generateinnovative solutions to problems.


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Team Focus

ENTREPRENEURIAL DECISON MAKING

Focuses On Finding New Opportunities;

Informed of, But Not Restricted By The Past


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What is Strategic Decision

Making?


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Strategic Decision Making

An organizations overall plan

or policy to achieve its goals.

Strategy

Key

questions?

St t i D i i M ki


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Strategic Decision Making

An organizations overall plan

or policy to achieve its goals.

Strategy

Key

questions

How do we want to get

there?

Where do we want to

go?

Wh d W W t t G ? St t i Mi i


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Where do We Want to Go? Strategic Missions

Low

Low

Medium

Medium

High

High

RISK

REWARDS

Divest

Harvest

Hold

Build

Declining market Exit at lowest cost Minimize losses Find a buyer quickly

Continuing market Maintain cash flow Maintain volume Cut costs

Continuing market Maintain growth Be a major player

Protect market share

New market potential Be early entrant

Achieve growth Capture market share

H D W W t t G t Th ?


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How Do We Want to Get There?

Managers are more successfulin attaining objectives if they:

Understand sourcesand threats to

competitive advantages.

Use effectivedecision making

techniques.

Competitive advantages exist in a value chain

that enables an organization to provide

more value at a lower cost than its competitors.

Ch i A L T St t


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Choosing A Long Term Strategy

Identify The Organizations Source OfCompetitive Advantage.

A competitive advantage is anything theorganization can do better than its competitorsto provide valued products and services forwhich customers will pay higher prices.

Cost Management Systems


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Cost Management Systems

ObjectivesDetermine

efficiency andeffectiveness of

major activities.Identify and

evaluate newactivities that can

improveperformance.

Cost

Management

System


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Example: Should We Outsource

Accounts Receivable?

COSTS OF

OUTSOURCING

QUALITATIVE1. Loss of direct contact

with customers

2. Adverse effects of

personnel reduction

BENEFITS OF

OUTSOURCING

QUALITATIVE1. Quality of service


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Example: Should We Outsource

Accounts Receivable?

COSTS OF

OUTSOURCING

QUANTITATIVE1. Contracted service

2. Contracted Administration

3. Total quantifiable costs

BENEFITS OF

OUTSOURCING

QUANTITATIVE1. Personnel cost savings

2. Facilities cost savings

3. Support cost savings


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What is the Value Chain?

Scale and Scope Of Operations


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THE VALUE CHAIN

A set of linked operations or processes that areinvolved in providing goods & services to

customers.

Begin by

obtaining

resources.

End by

providing

goods &services that

the customers

want.


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THE VALUE CHAIN

A set of linked operations orprocesses that areinvolved in providing goods & services to

customers.

Begin by

obtaining

resources.

End by

providing

goods &services that

the customers

want.

Everything

in betweenis the

Value

Chain

Value Chain


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Value Chain

The value chain describes the activities that increase the

value of an organizations products or services.

R&D Design

Production

Distribution

Marketing

CustomerService


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What is a Process?

PROCESS A related set of tasks that transforms inputs into

identifiable outputs Research and development Design Supply Production Marketing Distribution Customer service Support services


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Product

Design

Researchand

Development

Strategic Cost Management

and the Value Chain

Securing raw

materials andother resources

Production

Marketing

Distribution

Customer

ServiceStart

What is the Value Chain?


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What is the Value Chain?Where do we want to go?

How do we want to get there?

Physical

resources

Human

resources

Support services

AccountingHuman resources

Legal services

Information systems

Telecommunications

R &

D

Desig

n

Supply Production MarketingDistri-bution

Customer

service

Value of

products

and

services

Primary processes

Activities


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Does this

add value?

Activities

Evaluate each activity

Non Value-

Added Activity:

Customers

perceive no

value.

Can we eliminate

the activity?

Can we improve

the activity?

R&D Design

ProductionDistributio

n

Marketing Customerservice

Value AddedActivity:

Customers

perceive as

adding value.

Does this add value?

Value Added

Activity:

Customers

perceive as

adding value.

Non Value-Added Activity:

Customers

perceive no

value.

Hmmmm?

Value Chain


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Value Chain

Value-Added

Creating a

new product.

Non Value-Added

Research and

DevelopmentR&D

Value Chain


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Value Chain

Developing and engineering

the new product.

Design

Value-Added Non Value-Added

Value Chain


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Value Chain

Production

Producing the

product.


Value Chain


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Informing potential customers

about the product.

Marketing


Value Chain


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Delivering the product

to customers.

Distribution


Value Chain


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Supporting customers

who use the product.

Customer Service

CS



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Outsourcing and the Value

ChainFocus resources on parts

of the value chain that are

most important to

company goals.

Outsource those value chain

processes that can be done

more efficiently by others.

What is most likely

to be outsourced?

Potential problem?


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Outsourcing and the Value

ChainFocus resources on parts of the

value chain that are most

important to company goals.

Outsource those value chain

processes that can be done

more efficiently by others.

What is most likely

to be outsourced?

Information services, legal,

logistics, human resources,payroll, accounting, tax.

Potential problem

Loss of controland

internal expertise.


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Alternative Value Chain Configurations

This is a technique for identifying opportunities forimprovement and measuring the effects of proposedimprovement by comparing both the cost and benefits of aproposal.

Cost benefit

analysis

QUANTITATIVE

INFORMATION

QUALITATIVE

INFORMATION

Managerial Decisions


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Managerial Decisions

What adds value

to the firm?

Carmens Cookies


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Carmen s Cookies

Are costs

greater than

benefits?

What are

Carmens

cost drivers?

What are

Carmens

differential

costs?What areCarmens

differential

revenues?

Cost Benefit Analysis


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Consider both the costs and benefits of a proposal.

Is the cost greater than the benefit?

Dont

Expand Expand

Cost Driver


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What drives

my cost? These are estimates and requireassumptions.

Cost

Drivers

What are Carmens

cost drivers?

Factors that cause or

cost

Some may be

realized

Some may not be

realized

drive

Cost Driver


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Cost Driver

Number of

storefronts

Rent

Number of

cookies

Labor

Ingredients

Insurance

Differential Costs


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Costs that change in responseto a particular course of action.

Differential Costs

Differential costs differbetween actions.

Differential Revenues


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Revenues that change in responseto a particular course of action.

Differential Revenues

Differentialrevenues differbetween actions.

Differential Costs, Revenues &P fit


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Profits

(1) (2) (3)

Operating profits . $850 $1,255 $405

Total costs . $5,450 $7,250 $1,800

Other .. 1,000 1,200c 200

Rent . 1,250 1,250 -----

Utilities . 400 600b 200

Labor .. 1,000 1,500b 500

CARMENS COOKIESProjected Income Statement For One Week

a35 percenthigher thanstatus quo

b50 percenthigher thanstatus quo

c20 percenthigher thanstatus quo

Food 1,800 2,700b 900

Costs

Sales revenue ... $6,300 $8,505a $2,205

Sales Only Distribution Difference

Original Shop Wholesale & Retail

Status Quo Alternative

Budget


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Other 2,200

A financial plan for the revenues and resources

needed to meet financial goals.

Total Food 12,900

Nuts 1,900

Chocolate 1,900

Eggs 4,700

Flour $2,200

Food

CARMENS COOKIES

For the Month Ending April 30

Budgeted Costs

Rent 5,000

Total cookie costs $24,200

Utilities 1,800

Total Labor 4,500

Other 1,500

Manager 3,000

Labor

Number of cookies 32,000

Actual to Budget Comparison


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Difference

Total Food $13,500 $12,900 $600

Nuts 2,000 1,900 100

Chocolate 2,000 1,900 100

Eggs 5,200 4,700 500

Flour $2,100 $2,200 $(100)

Food

Actual Budget (Variance)

CARMENS COOKIES

For the Month Ending April 30

Actual vs Budgeted Costs

Number of cookies sold 32,000 32,000 0

Costs

02,2002,200Other

Actual to Budget Continued


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Total cookie costs $24,800 $24,200 $600

Utilities 1,800 1,800 0

Total Labor 4,500 4,500 0

Manager 3,000 3,000 0

Labor

Difference

Actual Budget (Variance)

01,5001,500Other

05,0005,000Rent

Quantitative Information


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Quantitative Information

Quantitative Information can be measuredrelatively easily and is usually expressed inRupees or other quantities relating to size,

frequency, etc.

Qualitative Information


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Qualitative Information

Qualitative Information is descriptive and isbased on characteristics or perceptions, such asrelative desirability, rather than quantities.

Competitive Advantages


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Competitive Advantages,

Sources and ThreatsProductStrategy

BusinessUnit Strategy

Low CostProduction

ProductDifferentiation

Market Focus

Build

Hold

Harvest

Divest

Source ofCapability

Create NewKnowledge

Imitate

Others

Suppliers

Formulation of Strategic Action


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g

Plans

1. Identify need for change.

2. Create teamto lead and manage change.

3. Create vision of the change and strategy for achieving vision.

4. Communicate vision and strategy for change and have change teamact as a role model.

5. Encourage innovationand remove obstacles to change.

6. Ensure that short-term achievements are frequent and obvious.

7. Use successes to create opportunities for improving entire organization.

8. Reinforce cultureof more improvement, better leadership, moreeffective management.

An 8-step process

Evaluating Plans and Outcomes


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Operational

performanceanalysis

Strategic

performanceanalysis

Has short-run

performance met

expectations?

Has long-run

performance met

expectations?



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CostBenefit

Analysis

VarianceAnalysis

Variances are the

differences between a

plans actual and expected

quantities.

The Changing Business


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g g

Environment

Just-in-time production

Total quality management

Process reengineering

Theory of constraints

International competition

E-commerce

Business environment changes

in the past twenty years

Evolution and Adaptation in


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p

Managerial Accounting

Service vs.

Manufacturing Firms

Emergence of NewIndustries

Global Competition

Focus on the Customer

Cross-Functional Teams

Computer-Integrated

Manufacturing

Product Life Cycles

Time-Based

Competition

Information and

Communication

Technology

Just-in-Time Inventory

Total Quality Management

Continuous Improvement

Change

E-Business

The Balanced Scorecard


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Financial Perspective

Goals Measures

Customer Perspective

Goals Measures

Operations Perspective

Goals Measures

Innovation Perspective

Goals Measures

How do we look

to owners?

How do customers see

us?

How can we continueto improve?

In which activitiesmust we excel?

Just in Time (JIT) Systems


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Complete products

just in timeto

ship customers.

Complete partsjust in time for

assembly into products.

Schedule

production.

Receive materialsjust in time for

production.

Receivecustomer

orders.

Just-in-Time (JIT) Systems

JIT Consequences


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Flexible

workforce

Reduced

setup time

Zero productiondefects

JIT Consequences

Improvedplant layout

JIT purchasingFewer, but more ultrareliable suppliers.

Frequent JIT deliveries in small lots.

Defect-free supplier deliveries.

Benefits of a JIT System


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More rapid

response to

customer orders

Freed-up fundsReduced

inventory

costs

Greater

customersatisfaction

Higher quality

products

Benefits of a JIT System

Increased

throughput

Total Quality Management (TQM)


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is

Continuous

Improvement

TQM improves productivity by encouraging the use of factand analysis for decision making and if properly implemented,

avoids counter-productive organizational infighting.

Systematic problem

solving using toolssuch as benchmarking



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BENCHMARKING

Identify

CompetitiveAdvantage Threats

Assignment


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Assignment

How do companies use benchmarking tomake important decisions?

Process Reengineering


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The process is redesigned

to eliminate all

non-value-added activities

Every step in

the business

process must

be justified.

A business process

is diagrammed

in detail.Anticipated results:

Process is simplified.

Process is completed

in less time.Costs are reduced.

Opportunities forerrors are reduced.

Process Reengineering versus


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TQM


Radically overhaulsexisting processes.

Likely to be imposedfrom above and to useoutside consultants.

Total Quality Management

Tweaks existingprocesses to realize

gradual improvements. Uses a team approach

involving people whowork directly in theprocess.

Theory of Constraints


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A sequential process of identifying and removingconstraints in a system.

Restrictions or barriers that impedeprogress toward an objective



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A constraint(also called a bottleneck) is anything thatprevents you from getting more of what you want.

The constraint in a system is determined

by the step that has the smallest capacity.



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4. Recognize that the

weakest link

is no longer so.

1. Identify the

weakest link.

2. Allow the weakest

link to set the tempo.

3. Focus onimproving the

weakest link.

Only actions

that strengthenthe weakestlink in thechainimprove the

process.


International Competition


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International Competition

Competition has

become worldwide

in most industries.

Fewer tariffs,quotas, and other

barriersto free trade.

Improvementsin global

transportation

systems.

An excellent management accounting system is neededto succeed in todays competitive global marketplace.

Increasing sophisticationin international markets.

Question


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Question

Stallion Gears is considering cessation of itsconsumer division due to rising litigation cost,but this will put 400 people out of work.

Stallions President is concerned about themorale of the other workers. Is this decisionquantitative or qualitative in nature?

Question


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Question

What is the style of management that putsseveral people from different areas togetherto generate innovative problem solutions?

A. Functional Role Management

B. Cross-Functional Team Decision Making

C. Entrepreneurial Decision Making

Question


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Question

What is the set of linked operations that areinvolved in providing goods & services tocustomers?

A. Production Chain

B. Value-Added Process

C. Value Chain

Question


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CMC helps companies adapt organizational structures to current industry trends. Recently, the CEO

approached Aplab Ltd., a hi-tech research company that offered a contract to CMC to assist in reorganizing

the company. CMC reported the following costs and revenues during the past year.

CMCs Annual StatementSales Rs. 1.20 crores

Costs

Labour Rs. 57.00 lacs

Equipment Lease Rs. 8.40 lacs

Rent Rs. 5.40 lacs

Salaries Rs 35.00 lacs

Other Costs Rs. 3.80 lacs

Total Costs Rs. 1.17 crores

Operating Profit Rs. 3.20 lacs

If CMC decides to take the contract to help the company reorganize, it will hire a full-time consultant at

Rs.13.40 lacs. Equipment Lease will increase by 5%, it must buy certain computer Equipment. Supplies will

increase by an estimated 10% and other costs by 15%. Existing building has space for new consultant and no

new person would be required. What costs would be incurred as a result of taking the contract?

If the contract will pay Rs. 15 lacs in the 1st year, should CMC accept it?

What considerations other than costs are necessary for making a decision?

Assignment


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Assignment

How does outsourcing affect an organization'svalue chain?

Assignment


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Assignment

Suppose you are the VP of the largestdepartment store in the region. The Presidentcalls you and says though we are the largest

store, only 30% of the sales are from locals.Find out why the balance are not? Why couldthis be a critical question and how would youorganize the team to find the answers?

Assignment


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Assignment

If every manager minimizes the cost ofprocess he or she supervises, overall cost of thecompany will decrease. Do you think this is a

wise strategy? Why or why not?

Assignment


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Assignment

What is a virtual organisation?

Group Assignment


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p g

Identify 2 companies from any

industry, find their most recent

annual reports on the net. From theDirectors reports identify and list

the similarities and differences in

these 2 competitors declaredstrategies.

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Documents

Cost Management Amp Strategic Decision Making