Home>Business & Finance Coursework Assignment – Need help with my homework – Research paper writing help – Write a paper>Accounting Coursework Assignment – Need help with my homework – Research paper writing help – Write a paper
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Q1
According to Datar and Rajan, (2014), “industry analysis focus on five forces: competitors, potential entrants into the market, equivalent products, bargaining power of customers, and bargaining power of input” (p. 584)
Competitors – is identifying the competitor’s strengths and weakness and how it can relate to your product or service
Potential entrants into the market- affects the competitive environment for the existing competitors and influences the ability of existing firms to achieve profitability
Equivalent products – alternative for the customer to purchase instead of the industry’s product.
Bargaining power of customers – the pressure that customers can put on business in order to get higher quality products, better customer service or lower prices
Bargaining Power of Input – low supplier power creates a more attractive industry and increases profit potential, as buyers are not constrained by suppliers.
Datar and Rajna (2014) state “the balanced scorecard translates an organizations mission strategy into a set of performance measure that provide the framework for implementing a is strategy” (p. 587). Such implantation includes financial, customers, learning and growth, and internal business processes. These forces impact a balanced scorecard by identifying 4 key performance by customer perspective, internal business perspective, learning and growth and financial perspective. The balance scorecard for financial perspective includes operating income, profitability and quarterly earnings. Datar and Rajna (2014) state “customer perspective identifies targeted customer and market segments and measure the company success” (p. 590) Internal business process perspective focus on creating the customers value in return can help the company reach its financial performance. Learning and growth perspective give organization information on customers to allow for growth and improvement.
***half page two reference minimum use this Datar, M., S. & Rajan, V., M. (2014). Managerial accounting: Making decisions and motivating performance. Pearson Education Inc.
Q2
Porter’s Five Forces is a framework for analyzing a company’s competitive environment. The number and power of a company’s competitive rivals, potential new market entrants, suppliers, customers, and substitute products influence a company’s profitability(Investopedia). As powerful strategic management tools, Porter’s Five Forces, Value Chain and Balanced Scorecard frameworks are linked and interacted each other in a wide circle of business in context. Porter’s Five Forces and Value Chain both help strategic managers to make decision on the basis of organizational external environment and internal analysis. The two frameworks are especially valuable for managers to develop and implement long-term strategy for organizations so as to build and maintain competitive advantages in the long run (Porter’s Five Forces, Value Chain, Balanced Score Card, 2021). And Balanced Scorecard can ensure and monitor the executions of strategy made by managers in a set of well-structured measures. Developed at the Harvard Business School, the Balanced Scorecard is an organizational framework for implementing and managing strategy at all levels of an enterprise by linking objectives, initiatives, and measures to an organization’s strategy. The scorecard provides an enterprise view of an organization’s overall performance by integrating financial measures with other key performance indicators (Walters, 2002). The balanced scorecard helps a manager to assess the company from financial perspective, internal perspective, learning growth perspective and customer perspective, let it survive, succeed and prosper (The Balanced Scorecard). To sustain long-run financial performance, a company must strengthen all links across its different balanced scorecard perspectives. The balanced scorecard promotes causal thinking where improvement in one activity causes an improvement in another (Datar&Rajan, 2014).
***half page two reference minimum use this Datar, M., S. & Rajan, V., M. (2014). Managerial accounting: Making decisions and motivating performance. Pearson Education Inc.
Q3
Porter’s Five Forces is a model that identifies and analyzes five competitive forces that shape every industry and helps determine an industry’s weaknesses and strengths (Investopedia Staff, 2020). Five Forces analysis is frequently used to identify an industry’s structure to determine corporate strategy (Investopedia staff, 2020). Understand the five forces is essential when trying an industry your company is entering or already in.
First five forces you have competitors, this force allow you to understand who you are in competition with, and what are their strength and weaknesses. Competitors forces also allow to analyze your competitors products or services that might similar to yours. The next forces you have is potential entrant into the market. This forces allows you understand what new competitors are entering your industry or market, and potential how it might impact the industry. This forces also can determine if existing company in the industry still be successful and profitable. The next forces is threat of substitute. This forces allows you to understand what product or services is available that customer could buy instead of yours product of services. The next forces is power of customers. This forces allow you to understand the power that customer has within the industry to pressure company to make better quality product, demand more of a product, demand more affordable products, as well as improve customer services. The last of the five forces is power of supplier. This forces allow you to understand the power of supplier to increase the prices of units bought, having a low or high amount of supplier in industry. Will determine the power of a supplier. If there a low amount of supplier in the industry their power is huge. On the other hand if there high number of supplier, their bargaining power decrease because of many options you have.
The balance scorecard translates an organization’s mission and strategy into a set of performance measures that provides the frameworks for implementing its strategy (Datar & Rajan, 2014). The forces impacts the scorecard because it help indicate the most important performance measure. Those measures is customer perspective, financial perspective, internal business perspective, and learning and growth perspective. The customer perspective identifies targeted customer and market segments and measure the company’s success in these segments. (Datar & Rajan, 2014). The financial perspective evaluates the profitability of the strategy and creation of shareholder value (Datar & Rajan, 2014). The internal business perspective , this perspective focus on internal operations that create value for customer that, in turn, help achieve financial performance (Datar & Rajan, 2014). The last perspective is learning and growth perspective. This perspective identifies people and information capabilities necessary for an organization to learn, improve, and grow (Datar & Rajan, 2014).
***half page two reference minimum use this Datar, M., S. & Rajan, V., M. (2014). Managerial accounting: Making decisions and motivating performance. Pearson Education Inc.
Q4
ith this accounting for decision making course, I learned a plethora of information that will benefit me in future classes and after school. Much of what I have actually learned lined up with what I anticipated to learn prior to beginning this course. As Datar and Rajan (2014) explained in the earlier chapters, accounting is important for a manager to understand and acknowledge in order to make appropriate decisions. Keep in mind the relationship between financial and managerial accounting. One concept that I understood already before learning about it in this class was the importance of nonfinancial measures. Nonfinancial measures include customer perspective and satisfaction, factors such as percentage of defective products manufactured and number of design and process changes to improve design quality or reduce costs (Datar and Rajan, 2014). To relate that back to accounting, it helps allow a manager and business to make the best decisions to save on costs and increase profitability.
The one concept that I really enjoyed learning about and believe will help me very much in the future is the assignment on the Space and Light Studio company. The case study entailed doing an analysis of the business, their current profit figures, future profitability, and a sensitivity analysis. Sensitivity analysis “involves changing the assumptions or estimates in a calculation to see the impact on the project’s finances (Koening, n.d., para 4). Doing this assignment really opened up my mind to the role accounting and managing budgeting can be for a business. It is as important to track present costs as it is future costs and outlooks. I am very glad that I was a part of this course and have taken a lot in. I especially look forward to the challenge of preparing an assignment on a balanced scorecard.
***half page two reference minimum use this Datar, M., S. & Rajan, V., M. (2014). Managerial accounting: Making decisions and motivating performance. Pearson Education Inc.
