GEZ petrol station: CVP analysis and spread sheet modelling for planning and decision making

2015 ◽  
Vol 5 (3) ◽  
pp. 1-6
Author(s):  
Ku Nor Izah Ku Ismail ◽  
Wan Nordin Wan Hussin ◽  
Mat Supian Salleh
Keyword(s):  
Decision Making ◽  
Learning Outcomes ◽  
Management Accounting ◽  
Fixed Costs ◽  
Product Lines ◽  
Financial Model ◽  
Content Type ◽  
Petrol Station ◽  
Spreadsheet Model ◽  
Income Statement

Subject area Management Accounting and Financial Modelling. Study level/applicability Undergraduate and post-graduated levels. Case overview Aiman, the Area Manager of GEZ Berhad, realised the importance for petrol station operators to have an understanding of fundamental management accounting concepts such as cost behaviour and cost–volume–profit (CVP) analysis. He also believed that the petrol station operators should be proficient in using Microsoft Excel functionality and able to construct “intelligent” financial model with extended sensitivity analysis. Being a manager responsible for training the petrol station operators, Aiman would like to introduce the CVP concepts and spreadsheet model-building process to the petrol station operators, to aid them in planning and decision making. To construct the Excel spreadsheet model, Aiman sought the assistance of Rizal, a university lecturer in accounting, who in turn gathered the relevant operational and financial data from Baron Service Station, a typical petrol station under GEZ stable. The model should be flexible enough to allow the petrol station operator to anticipate, for example: What will happen to overall profitability of the petrol station if the fuel prices go up? What is the minimum volume of fuel that needed to be sold to break even? How much extra profit can be generated if credit card sale is reduced? and Is it viable to install an automated teller machines (ATM) kiosk and incurring administrative charges from bank to lure more customers to visit the petrol station? As the petrol station sells multiple products (petrol, diesel and convenience goods), the owner is also interested to know which product lines are the most and least profitable. Thus, the model should be able to generate segmented income statement with appropriate allocation of the common fixed costs to the each of the products. Expected learning - outcomes The case discussion is intended to achieve the following learning outcomes: students are able to prepare a financial model which include a segmented contribution income statement based on the information on product mix; students are able to calculate the break-even point and distinguish between fixed and variable costs; students are able to differentiate between traceable fixed costs and common fixed costs; students are able to build a financial model that is sufficiently flexible to allow various what if analysis to be performed; and students are able to use what if analysis tools in Excel such as Goal Seek and Data Tables. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes.

In the uncertain world of Qontrac International: navigating through family, growth and succession management challenges

2018 ◽  
Vol 8 (4) ◽  
pp. 1-31
Author(s):  
Diantha D’Costa ◽  
Virginia Bodolica ◽  
Martin Spraggon
Keyword(s):  
Decision Making ◽  
Learning Outcomes ◽  
Family Business ◽  
Management Style ◽  
Managerial Decision ◽  
Succession Management ◽  
Managerial Decision Making ◽  
Content Type ◽  
Family Growth

Learning outcomes Upon completion of this case study analysis, the course audience is expected to achieve four learning outcomes. In particular, students should be able to conduct a comprehensive organizational diagnosis to uncover the peculiarities of managing a family business; analyze the specific challenges faced by family-owned enterprises in the context of emerging markets; evaluate the succession management practices in family organizations and design a profile of a successful successor; assess the effectiveness of managerial decision-making and provide recommendations for securing the sustainability of a family firm. Case overview/synopsis This case study unveils the tumultuous story of Vishwanath Shetty, an ambitious entrepreneur who transformed his small venture into a profitable family business with operations in Middle East, Asia and Africa. Since the early establishment of Qontrac International in 1989, he relied on the ownership and management participation of several members of his and his wife’s families. Over the years, Vishwanath was successful in pursuing a strategy of continuous growth and geographic diversification by taking advantage of the business opportunities in several regions and opening up branches in Oman, the United Arab Emirates (UAE), Ghana and India. Yet, almost three decades after its launch, the company was confronted with a number of family, growth and succession management challenges that endangered its survival in the long run. The Shetty family experienced a serious rift due to financial reasons, the performance of the two branches managed by siblings declined, and the old firm structure and management style did not fit well with the newly enlarged and geographically dispersed Qontrac International. To deal with these organizational issues, Vishwanath was faced with an additional dilemma of securing the support of a suitable intra-family candidate who could join the family business and become his successor. By describing the strategic events and family dynamics that shaped the evolution of Qontrac International over time, the case provides an opportunity to assess the effectiveness of managerial decision-making in the context of family firms and provide viable recommendations for ensuring firm survival and longevity. Complexity academic level Upper-level undergraduate audience Graduate audience (in Master of Global Entrepreneurial Management program). Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Subject code Strategy.

Dealing with the visibility created by accounting numbers – A case study of cost accounting translation in a transitional economy

2020 ◽  
Vol 10 (2) ◽  
pp. 277-303
Author(s):  
Catalin Nicolae Albu ◽  
Nadia Albu ◽  
Flavius Andrei Guinea ◽  
Mathew Tsamenyi
Keyword(s):  
Decision Making ◽  
Management Accounting ◽  
Actor Network Theory ◽  
Unintended Consequences ◽  
Content Type ◽  
Construction Companies ◽  
Cost System ◽  
Costing System ◽  
State Taxation ◽  
The Cost

PurposeThis paper investigates the process of translating a costing tool into operational use in the context of a transitional (post-communist) economy, where local institutions challenge the rationality of western methods.Design/methodology/approachBy mobilizing Actor–Network Theory, in particular Callon's four moments of translation, and by drawing data from an interventionist research, the paper focuses on the process of change instilled by the implementation of a costing tool in 20 Romanian construction companies.FindingsThe costing system is initially problematized as a tool for rational decision making. However, the visibility over the accounting figures generated by the costing tool instilled new roles for the cost system to manage internal and external interdependencies. First, two costing datasets were created, one for decision making and one for tax purposes, to manage the relationship with the state taxation authorities. Second, since the costing tool generated visibility over the field practices as well, engineers convinced management to drop the decision-making set of costs. The costing tool ultimately only became used for tax optimization, an originally unintended use, reflecting its translation process.Research limitations/implicationsBy taking an interventionist approach, the paper contributes to theorizing accounting in transitional economies by bringing their economic idiosyncrasies into the analysis.Practical implicationsThe results inform managers about the intended and unintended consequences of management accounting tools and about actors' role in shaping their use.Originality/valueOur research responds to recent calls to study how organizations configure their control systems in a rapidly changing environment and what is the role of management accounting in these arrangements.

King's Biscuits Berhad: crafting the next move?

2011 ◽  
Vol 1 (1) ◽  
pp. 1-4 ◽  
Author(s):  
Boon-In Tan ◽  
Garry Wei-Han Tan ◽  
Keng-Boon Ooi
Keyword(s):  
Learning Outcomes ◽  
Real Life ◽  
Subject Area ◽  
Product Lines ◽  
Content Type ◽  
Marketing Environment ◽  
Future Challenges ◽  
Real Practice ◽  
Study Student

Subject area Management, marketing and branding and strategy. Study level/applicability Undergraduate and postgraduate management courses. Case overview This is a real-life case involving a confectionery manufacturer in Malaysia where it has grown over the years. As the market becomes more competitive, more challenges are confronting the company. Although there is still profit to be made, the margin is declining. Hence, the management of King's Biscuits Berhad must embark on the marketing environment scanning to prepare the company for future challenges and to ensure continued existence. As in the case of most strategy cases, little guidance was available for the students to reflect upon. Expected learning outcomes With the completion of this case study; student will be able to familiarize with the exercise of marketing environment scanning, determine the branding, product lines and positioning issues, adopt the marketing mix concept into real practice, and have the opportunity to visualize a true business scenario and simulate their minds and thinking towards managing a business. Supplementary materials Teaching note.

Breach of psychological contract: impact on workforce motivation and organizational sustainability

2020 ◽  
Vol 10 (1) ◽  
pp. 1-20
Author(s):  
Muhammad Nadeem Dogar
Keyword(s):  
Decision Making ◽  
Social Development ◽  
Learning Outcomes ◽  
Conflict Of Interest ◽  
Psychological Contract ◽  
Interpersonal Conflict ◽  
Task Conflict ◽  
Organizational Sustainability ◽  
Content Type ◽  
Development Organizations

Learning outcomes This case study aims to expect the following learning outcomes. A better understanding of the nature of a psychological contract being developed by employees in non-profit organizations, especially working in the areas of social development and the impact of this contract on employee commitment. Enhanced understanding of conflict of interest (personal versus public) in social development organizations and its implications. Identification of issues of task conflict versus interpersonal conflict and its impact on organizational functions. Identification of dynamics of exclusion of internal stakeholders from organizational strategic decision-making process along with its impact on organizational performance and sustainability. Devising a mechanism to avoid such conflicts in social development organizations, in particular, and organizations in general. Case overview/synopsis This case highlights five issues as follows: it identifies and discusses conflict of interest between privileged class possessing decision-making positions in the board of directors and implementers working at the grassroots level at ANMOL (a non-governmental organization working for poor girls education in Baluchistan-hub of China–Pakistan Economic Corridor); it discusses the basis for formulation of psychological contracts and impact of its violation on stakeholder’s commitment and motivation; it discusses the implications of difference of opinion of both stakeholders regarding organizational vision and possible drawbacks of converting task conflict into interpersonal conflict on individuals, organization and end-users; it explores implications of exclusion of key stakeholders from organizational decision-making and its impact on organizational smooth working and sustainability; and it suggests a mechanism to avoid conversion of task conflict into interpersonal conflict and smooth functioning of an organization. Hence, this case discusses theories of conflict of interest between top-leadership and workforce, psychological contract and implications of its breach on employee motivation and organizational sustainability in the context of social development organizations. Complexity academic level This case provides sufficient material to be discussed at master level courses (management sciences – master of business administration (MBA) level) such as human resource management (dynamics of psychological contract and conflict resolution), leadership and change management in social development organizations (social enterprises). Supplementary materials Teaching Notes are available for educators only. Subject code CSS 7: Management Science.

Exclusive books: applying a behavioural economics perspective

2020 ◽  
Vol 10 (3) ◽  
pp. 1-30
Author(s):  
Thiroshnee Naidoo ◽  
Charlene Lew
Keyword(s):  
Decision Making ◽  
Learning Outcomes ◽  
Consumer Choice ◽  
Behavioural Economics ◽  
Choice Overload ◽  
Consumer Decision Making ◽  
Consumer Decision ◽  
Content Type ◽  
The Impact

Learning outcomes The learning outcomes are as follows: understanding of the principles of choice overload and the impact of consumer choice overload on company sustainability and growth prospects; understanding of how several heuristics inform consumer decision-making; applying nudge theory to interpret and clarify the impact and consequences of nudges on consumer decision-making; and considering the challenge of a newly appointed CEO to influence consumer choice. Case overview/synopsis The case study and teaching note offers insights into the use of behavioural economics principles in consumer choice. The case study methodology was used to design, analyse and interpret the real-life application of behavioural economics in the retail sector. The case demonstrates how choice overload, dual process theory, decision heuristics and nudge theory play a role in consumer decision-making. The case offers insights into the application of behavioural economics to support the sustainability of a company in an emerging market context. Managers can use the findings to consider how to use behavioural economics principles to drive consumer choice. The application of behavioural economics to an industry facing challenges of sustainability offers new insights into how to design spaces and cues for consumer choice. Complexity academic level The case study is suitable for course in business administration, specifically at postgraduate level. Supplementary materials Teaching notes are available for educators only. Subject code CSS 8: Marketing

scholarly journals Increasing the usefulness of farm financial information and management

2015 ◽  
Vol 10 (3) ◽  
pp. 227-242 ◽  
Author(s):  
Abdel K. Halabi ◽  
Brendan Carroll
Keyword(s):  
Decision Making ◽  
Management Accounting ◽  
Farm Management ◽  
Financial Information ◽  
Business Owner ◽  
Financial Reports ◽  
Content Type ◽  
To Come ◽  
Accounting Reports ◽  
Practical Implications

Purpose – The purpose of this paper is to examine how farm management and farm accounting may be improved from the accountant’s perspective. Design/methodology/approach – There has been a dearth of qualitative studies examining accountant’s attitudes to financial reports. This study therefore interviews 13 rural accountants regarding their opinions on the usefulness of financial information they provide to farmers, and what types of financial information could aid farm management. Findings – Accountants generally agree that the present financial reports provided to farmers are of little decision-making value, since they are made for the purposes of compliance. In response, the accountants suggest a number of management accounting reports can better aid farmers. Practical implications – Accountants are important to the success of farms, yet in-depth responses have not previously been sought on the reports that accountants produce for farmers. This research provides accountants’ opinions on how reports could be more useful for farmers and how more focused management accounting reports can assist decision-making. Originality/value – The qualitative approach used in this research provides a fresh and richer perspective on the usefulness of accounting to farm management. Interviewing the adviser rather than the business owner is relatively uncommon in agricultural organisations. The interviews have allowed the thoughts and concerns of accountants to come to light in a manner not previously achieved in organisational studies which relate farming and accounting.

The Snow Festival: what went wrong?

2016 ◽  
Vol 6 (1) ◽  
pp. 1-10
Author(s):  
Pajaree Ackaradejruangsri
Keyword(s):  
Decision Making ◽  
Problem Solving ◽  
Environmental Impact ◽  
Learning Outcomes ◽  
International Business ◽  
Potential Problem ◽  
Business Management ◽  
Health And Safety ◽  
Subject Area ◽  
Content Type

Subject area Strategic and Business Management. Study level/applicability Sophomore level. Case overview This case is about unexpected incident at a Snow Festival, Plearn Park Thailand. Despite a great number of visitors, many serious concerns were raised, particularly the health and safety of people and the environmental impact of the fake snow. Mr Sun and his team tried their very best to address and solve the concerns. But no matter what actions were taken, the concerns and anxieties still remained. As the founder of Plearn Park, Sun decided to end the event. But still he could not get over it. He thought over and over, “what really went wrong with the Snow Festival?” Expected learning outcomes This case offers a rich context for examining the situation, analyzing the cause of the problem, evaluating the decision and exploring the potential problem with an aim to enhance students’ skills in problem-solving and decision-making through an actual incident in a larger environment. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Subject code CSS 5: International Business.

Due diligence: Plantation Shutters®, South Africa

2017 ◽  
Vol 7 (2) ◽  
pp. 1-19
Author(s):  
Margie Sutherland ◽  
Hayley Pearson ◽  
Greg Fisher
Keyword(s):  
South Africa ◽  
Decision Making ◽  
Learning Outcomes ◽  
Subject Area ◽  
Management Competencies ◽  
Content Type ◽  
General Management ◽  
Sales Company ◽  
Decision Making Processes

Subject area Company turnaround, General Management. Study level/applicability Executive education, MBA. Case overview This is a four-part case study in which the case of a company turnaround emerges as the students work through a series of decision-making processes. In teaching the case, the students would only be given Part A to begin with, about which they need to make decisions as to what they would do, as preparation for the first part of the lecture. After that has been discussed, they are provided with the second part which tells them what in fact happened in the situation and leads them to the next decision point, and so on. The case deals with an entrepreneur hearing about a business that has gone insolvent; it then tracks the process from investigating the small manufacturing and sales company through the various stages of its subsequent remarkable turnaround to the point where the protagonist was voted Entrepreneur of the Year in South Africa. It covers the period 2007 to 2012 and includes the annual financial statements. Expected learning outcomes Following are the expected learning outcomes: an understanding of the broad range of management competencies; an understanding of how to turnaround a small organisation; and to experience group-based decision-making. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Subject code CSS 11: Strategy.

Post acquisition brand identity: acquisition of Flipkart group by Walmart Inc.

2021 ◽  
Vol 11 (2) ◽  
pp. 1-21
Author(s):  
Vibhas Amawate ◽  
Madhurima Deb
Keyword(s):  
Decision Making ◽  
Learning Outcomes ◽  
Market Research ◽  
Master Of Business Administration ◽  
Brand Identity ◽  
Brand Strategy ◽  
Decision Making Process ◽  
Socially Responsible ◽  
Content Type

Learning outcomes The learning outcomes are as follows: factors to be considered in devising the best post-acquisition brand identity and outline market research techniques, which can be used to identify the best-suited post-acquisition brand identity strategy. Case overview/synopsis The case study discusses the brand strategy, which Walmart Inc needs to adopt post its acquisition of Flipkart Pvt. Ltd (Flipkart) Group in India. Flipkart had acquired Myntra Designs Pvt. Ltd (Myntra) and Novarris Fashion Trading Private Limited (Jabong), but had kept their brand identity intact; Walmart Inc was faced with the decision on moving ahead with the brand strategy of keeping individual brand identities or merging all of these into a single brand identity. The study aims to provide valuable insights into the decision-making process adopted by Walmart Inc. It includes also the role of cause-related marketing in the positioning of Myntra as a socially responsible brand. The case study opted for an exploratory research design study using the qualitative research method of in-depth interviews. In total, 10 experts in the area of marketing, market research and marketing communication were interviewed. The qualitative data were analyzed using a template approach, which analyzes the text using a codebook or an analysis guide. The analysis guide already has clearly defined themes or categories. As the qualitative interviews progress, these themes get revised. These themes are analyzed qualitatively rather than statistically. The case study suggests to the management of Walmart Inc that they need to merge Myntra and Jabong based on the degree of similarity of consumer demographics, income/social class of buyers, brand identity and buying behavior. Myntra needs to retain as opposed to Jabong, as Myntra is perceived to be a socially responsible brand that creates a purchase disposition in the minds of the consumers. A more extensive quantitative study would offer better generalizability. It was not feasible to conduct a quantitative study due to time constraints. This research would have used advanced brand imagery assessment techniques such as multi-dimensional scaling to suggest if an overlap exists between consumer segments of Myntra and Jabong. The case study provides a decision-making framework to firms and individuals who are part of organizational teams to create a post-acquisition brand strategy in the e-commerce market. The case study fulfills a need for many academicians and practitioners to understand the decision-making process followed in devising a post-acquisition brand strategy in India. Complexity academic level Senior undergraduates; Master of Business Administration; Executive Master of Business Administration. Supplementary materials Teaching Notes are available for educators only. Subject code CSS 8: Marketing.

Fiery phoenix PLC – entrepreneurial survival in Zambia

2020 ◽  
Vol 10 (4) ◽  
pp. 1-17
Author(s):  
Mwila Natasha Katuta
Keyword(s):  
Decision Making ◽  
Learning Outcomes ◽  
Undergraduate Students ◽  
Ethical Decision ◽  
Ethical Decision Making ◽  
Ethical Dilemmas ◽  
Study Data ◽  
Content Type ◽  
Academic Level ◽  
Decision Making Models

Learning outcomes The learning outcomes are as follows: students should be able to provide definitions for ethical dilemmas; students should be able to identify ethical dilemmas in a real business context; and students should be able to determine the outcomes of applying given decision-making models to a specific scenario. Case overview/synopsis The aim of this study is to demonstrate the complexity of ethical decision-making in start-up enterprises in emerging markets. The study draws on two well-known decision-making models to illustrate how their application in this context may lead to conflicting outcomes. The study data was collected through reflective entries provided by the business proprietor. These were followed up by three in-depth interviews. The data was supported by analysis of company documents provided by the case. The study demonstrates the crucible moments in entrepreneurial startups that give rise to ethical questions and the need for decision making. It demonstrates the complexity of ethical decision making in emerging contexts. The study business elected to maintain anonymity for commercial protection. This limits the scope of information that may be divulged. The study and the accompanying teaching note provide context for how to apply decision-making frameworks to real business dilemmas. This study contributes to scholarly work on teaching business ethics to undergraduate students. Complexity academic level Final Year Undergraduate. Supplementary materials Teaching Notes are available for educators only. Subject code CSS 3: Entrepreneurship.

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