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Increase in Global Competition-Due To An Increase in Global Competition Lead

This document discusses strategic analysis for a new business plan. [1] Jim Castelo wants to start a mail-order business selling sailboat equipment he has designed and favors. [2] A SWOT analysis identifies strengths in Jim's design experience and selling by mail-order, and weaknesses around competition and lack of personal contact. [3] The strategic analysis recommends Jim focus on his design advantages and ensure high quality supplies to compete effectively in the market.

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Alexis King
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102 views4 pages

Increase in Global Competition-Due To An Increase in Global Competition Lead

This document discusses strategic analysis for a new business plan. [1] Jim Castelo wants to start a mail-order business selling sailboat equipment he has designed and favors. [2] A SWOT analysis identifies strengths in Jim's design experience and selling by mail-order, and weaknesses around competition and lack of personal contact. [3] The strategic analysis recommends Jim focus on his design advantages and ensure high quality supplies to compete effectively in the market.

Uploaded by

Alexis King
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Name: KING, Alexis O.

Course and Year: BSA 3C

ACTIVITY 2

1. How does a company determine and implement its mission?


Every business has its own purpose, the reason for which one thing is done. It is
important in a company to have its own purpose, through that it will help them
determine and understand the company’s goals and what must be done to
achieve it.

2. How have firms responded to changes in business?


Organizations have to transform themselves to become more competitive, have
profound effect in the practice of management accounting. The increase in global
competition and the changes in accounting techniques lead them to have a new
strategic approach to management and to cost management.

3. Contrast the use of strategic financial measures with the use of strategic
nonfinancial measures.
Strategic financial measures focus on the short term success factors of a
business. This includes the revenues, profits and cash flows of the company.
While, strategic nonfinancial measures focus on the long term success factors of
the business. This includes the satisfaction of the customers, the development of
brand, employee motivation and many more.

4. What are some factors in the contemporary business environment that are
causing changes in business firms and other organization, and how are the
changes affecting the way those firms and organizations use cost
management information?
The changes in business firms are (1) increase in global competition; (2)
advances in manufacturing technologies; (3) advances in information
technologies, internet and e-commerce; (4) a greater focus on the customer; (5)
new forms of management organization; (6) changes in the social, political, and
cultural environment of business.

Increase in global competition- due to an increase in global competition lead


them to have a new strategic approach to management and to cost
management.
Advances in manufacturing technologies-firms uses just-in-time inventory method
in order to reduce the cost and waste of maintaining large levels of raw materials
and unfinished products.
Advances in information technologies, internet and e-commerce-the need for
cost management information to facilitate the introduction of new manufacturing
and product technologies.
A greater focus on the customer- focusing on the satisfaction of the customers,
the cost management practices are also changing, cost management reports
now include specific measures of customers preference and customer
satisfaction.
New forms of management organization- the organization focuses on the
satisfaction of the customers. TQM is needed for the new forms of organization
since it is a method which management develop policies and practices to ensure
that the firm’s product and services exceed customer’s expectations.
Changes in the social, political, and cultural environment of business- Need the
expansion of cost management to include many success factors relating to it.

5. What are the implications of strategic analysis for cost management?


Due to expected change in the contemporary environment of business, guided
by the strategic or long term thinking, the management accountants focuses on
how to ,make the company successful rather than just focusing on cost control
and other financial measure.

6. The competitive environment for both manufacturing and service


companies has become far more challenging and demanding in the last 25
years. Discuss the changes in competition and in the nature and type of the
new requirements for management accounting information.
The change in the business environment in at least two decades where
organization have to transform themselves to become more competitive, have
profound effect in the practice of management accounting. The increase in
global competition and the changes in accounting techniques lead them to have
a new strategic approach to management and to cost management.

7. Explain how a customer focus can result in increased profits for a


company?
Customers are the primary contributor to the success of any company or
organizations. Once the customer meets its expectations he or she will be
satisfied and has a high probability that the customer will now patronize the
products or services. The more customers patronizing the products or services,
the more that the company will increase its profits.
8. In most organizations, customer satisfaction is one of the top priorities. As
such, attention to customers is necessary for success. Briefly describe the
four types of demands customers are currently placing on organizational
performance.
Fair price- Fair pricing is one of the needs of a customer. Low price encourages
customers to buy the product or pay for the service. The pricing must be fair
enough for the company as well as to the customers.
Good service- I’ve experienced a poor customer service in one of a shoe store,
not to name it, the saleslady doesn’t guiding me or giving me the attention that I
needed maybe because she thought I can’t afford it. Because of that I’m
discouraged to buy the product and enter to a new shoe store. A good customer
service has a big impact on the customers.
Good product- a good quality product is a major turn on to the customer. There
is no point if you’re just making and making a lot of products if no one is buying
your poor product.
Feel valued- What’s the sense of your business if no one’s patronizing your
product. When the customer feel valued, he or she will continue patronizing your
products/services.

PROBLEM:

Jim Castelo’s lifelong hobby has been racing small sailboats. Jim has been successful
both at the sport and in the design of new pieces of equipment to be used on small
sailboats to make them easier to sail and more effective in racing. Jim is now thinking
about starting a mail-order business in his garage to sell products he favors, as well as
some he has designed himself. He plans to contract out most of the manufacturing for
the parts and equipment to machine shops and other small manufacturers in his area.

REQUIRED: Develop a strategic analysis for Jim’s new business plan. What


should be his competitive position; that is, how should he choose to compete in
the existing market for sailboat supplies and equipment? How is he likely to use
cost management information in building his business
I will be using SWOT analysis tool

Weaknesses
Strengths 1. competitors can
1. He designed the offer similar
products himself products.
2. Ability to sell 2. Since it is a mail-
products using a order there will be
mail-order a lack of personal
business contact between
the seller and the
buyer.
Opportunities
Threaths
1. Ability to
1.The business will
develop additional
be seasonal, profit
stores
during summer and
2. Ability to during rainy days
develop a are different.
franchise.
2. The unexpected
or fortuitous.
events.

How should he choose to compete in the existing market for sailboat


supplies and equipment?

I think Jim must stick to his own designs, since he has been successful both at
the sport and in the design of new pieces of equipment. That will be his great
advantage towards his competitors. He plans to contract out most of the
manufacturing for the parts and equipment to machine shops and other small
manufacturers in his area, it must be a good quality supplies.

How is he likely to use cost management information in building his


business?
He will use Total Quality Management for the new forms of organization since it
is a method which management develop policies and practices to ensure that the
firm’s product and services exceed customer’s expectations.

It needs cost management information to further monitor cost of the material


and labor and allocate appropriate overheads to the product cost of the
sailboats.

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