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Abstract

Project management needs to focus on different areas of knowledge. Scope, cost, and time are evaluated as major aspects and factors behind the success. Scope management helps manage different activities and requires some effort and time. Scope management assists in facilitating the milestone and deliverable of a project. Scope creep in project management is evaluated as a drawback for a project which defines sone unnecessary growth. This can be controlled with documents, control change processes, project team awareness, etc. A project manager needs to use scope management and creep management to control failure.

Introduction

Project scope, cost, and time play an important role in the success of a task. A project manager is a responsible authority to handle the cost and complete the task in a defined duration (Kendrick, 2015). Different types of costs are incurred on a project like direct cost, indirect cost, fixed cost, variable cost. All of them are needed to assess in advance by the project manager so that they can define the budget. Time management is also important to facilitate and succeed in a project with appropriate monitoring and control. This assessment will be focused on the literature review on the scope as an appropriate project management area. Another aspect is the evaluation of the scope creep in project management and its application in a project environment. The impact on project success will be defined with a managerial decision.

Discussion

a) Literature review on the scope

The scope of a project defines a brief overview of a task to the stakeholders with major factors behind the success. It includes a specific list of goals, features, deliverables, deadlines, and milestones (Madhuri, et. al., 2018). This defines the target of the project and the work which used to get done. The project manager consists and defines some of the activities as in-scope and some as out-scope. This indicates that several activities in the project are well planned whereas some consider as a contingency. Project scope is important to make a task successfully and guide others to facilitate operations in the right direction (Shirazi, et. al., 2017). For effective scope management, the project manager needs to follow certain steps. Following are some of the steps for effective project scope management:

Planning of the scope: This is the first stage of the project where all information leads to collect from the stakeholders which include requirements, expectations. Under this, stakeholders help to document the activities and derive steps to control the scope of a project. This scope management plan helps in assessing the contingencies of the project, milestones, other elements of the work breakdown structure, etc.
Collect requirement: In this phase, the project manager will be going to determine the wants and needs of the stakeholders. For managing the scope and success of a project, it is essential to determine and underpin the requirement of stakeholders which derive through focus groups, surveys, interviews, etc.
Scope description: The scope statement helps define the aspects of a project. The key deliverables and milestones will be assessed as well. Thus, for a better a depth understanding, the project manager also becomes aware of the in scope and out of the scope activities. Hence, with this, the project manager becomes able to prepare strategies and outline the plan of the work.
Scope validation: The scope validation is important to derive the best deliverables. It is essential to review the deliverables of the project and get approval. An appropriate plan in place is helpful to accomplish the desired target. The operational system of record helps in setting up the scope validation process so that every stakeholder used to approve it.
Controlling of scope: For better control of a project, it is a moral duty of the manager to facilitate keen monitoring. The project managers need to compare the performance reports with project requirements. This helps in determining that the scope of a project is getting fulfil or not.

As per the viewpoint of Shrivastava and Hariharan (2015), project scope management implementation takes an amount of fair but it supports managing the duration of the long run, money, and many other problems. Thus, a project manager needs to align appropriate communication between the stakeholders and take suggestions from team members. With this, the project manager is required to focus on these activities of the scope management so that it can contribute to the success of a project. Stakeholders are a helpful and integral part of the scope management process. A scope assists a project to become successful with a description of key milestones and single activities. This will result in optimum use of resources which benefits in cost and time control. Every aspect of project management is interlinked with one other to derive beneficial gain.

On the basis of Siemens (2016), scope management is not an easy task for a project manager and needs knowledge, communication with stakeholders. Scope management also helps the project manager to define roles and responsibilities as well as to develop a process. The scope management process is focused on some key areas like process, project group, and key deliverables. Under this, every stage belongs to a specific aspect and attribute to make a successful outline. The project scope management defines some basis like:

It clearly states about the results or the end deliverables accomplish through the project
It also defines the budget and time constraint information related to the project which includes a description of the project and end product which derive with ending of the task.
This also categorizes the project budget and schedule so that every activity can be done as per defined process and procedure.

For effective control on the process, the project manager focuses on input, tools, and techniques ad output. Input includes project management plan, charter, process assets, environmental factors (Monnappa, 2020). The tools and techniques for better control on the scope are expert judgment and meetings with the people. Thus, with the focus on controlling scope, project requirements lead to fulfilling. Along with this, it also assists in deriving an appropriate and suitable solution for every single problem.

b) Application of scope in the project environment and its impact on project success and managerial decision

Definition

Sometimes a project suffers from inappropriate growth and went through various changes at any time. This problem arises due to inappropriate documentation, control, and management of the activities (Ajmal, et. al., 2019). This aspect is termed as the project scope creep of kitchen sink syndrome. This hampers the project work and influences the strategy of the project as well. Thus, a project manager needs to use relevant strategies and the draft document before initiating a project. For better control, a manager needs to focus on controlling activities so that it can avoid unnecessary growth and creep in the project.

Causes

Project scope Creep is inappropriate in nature and influence growth and ending results as well. This harms a project completely but can provide good results in minimum cases. A project manager needs to understand the scope of creep causes (Wawira and Susan, 2019). Some of the primary causes which deprive through scope creep are:

This causes a poor assessment of the requirements. This makes the work and pattern of work hard for the manager. Moreover, the team also moves in different directions which influence the utilisation of the resources.
This causes due to underestimation of the requirements of the project. The project manager does not justify and determine the requirement of a project. This results in the scope creep as team members, stakeholders do not link their needs and requirements with the project.
One of the major drawbacks of scope creep which causes from it is lack of control. It becomes hard for the project manager to control the entire project in an effective manner. This results in a negative outcome as it might cause the failure of the project as well.

Its impact on project success

Project scope creep influences the results of the project and impacts it differently as well. A project manager needs to understand the impact of creep on the project and its success (Wawira and Susan, 2019). Following are some of the impact of scope creep on project success which needs appropriate evaluation:

The first impact is defined in the budget of the project. A fluctuation in the budget of a project influence various activities. It also overestimates and underestimates a budget that fluctuation in the cost. With a slight increase in the cost of any activity, the manager needs to cut down from other activities like material, labour, etc. Thus, the success of a project compromise as its quality hamper.
Another impact on project success is the inappropriate utilization of resources. The resources used for a project went out of control. This arises due to creep and delay in the project. The project goes beyond the defined time duration which wastes the major resources. Hence, it influences the budget of the project for the consumption of more resources. Thus, it also influences the success of a project as things went in different directions.

Strategies/ways to prevent scope creep

Project scope creep is evaluated as an inappropriate aspect for the task which causes failure. Thus, the project manager needs to use relevant and effective ways to prevent scope creep. Following are some of the ways through which scope creep can be controlled effectively ((Ray, 2013):

Documentation of the requirements which include every single information of a project like a milestone, deliverables, time, resources. This helps in effectively planning the entire project.
Develop a change control process in the project. Under this, a project manager can change any activity with a suggestion from stakeholders. This helps in avoiding any fault and fluctuation from the project so that all tasks went in the right direction.
Scheduling of a project is really important and assist in making a successful project with any creep. Thus, scheduling is important to draft while developing a scope with the assistance of WBS.
Verification is important from the side of stakeholders. The project manager needs to verify details from the stakeholders and take their approval.
Engage the project team and define the scope to them. This helps in controlling the scope creep as they use to work as per define roles and responsibilities.

Case of scope creep (from business, industry, or project)

Scope creep is inappropriate and defines the failure of a project. The project manager needs to align their study with some cases of scope creep. One of the causes of scope creep was Chrysler’s PT Cruiser. Chrysler’s PT Cruiser did not want to change the design of their cars at the last minute but at the time of product delivery, the company suffers from some problem (Scope creep: manage scope wisely for a successful project, 2020). This results because of inappropriate preparation of the product delivery schedule. Thus, as a result, the company had faced a huge loss in sales and the launch of its cars in the market.

Managing scope creep

Managing scope creep is not a big deal. It needs some knowledge and efforts by the project manager so that all aspects work in a relevant direction. Following are some ways of managing scope creep (Scope creep: manage scope wisely for a successful project, 2020):

Development of the change control process which further deploys some changes in the documents.
Aware all stakeholders about changes as well as keep check up on the scope of the project.
Communicate scope change properly with the new timeline
Collaboration with stakeholders and take their opinion about change or alteration in the project.

Recommendations

Following are some recommendations to control the scope creep of the project:

Update the timeline when any alteration leads to take place so that necessary changes can amend.
Take suggestions from stakeholders about change so that relevant judgment can take place.
Develop documents and milestones and aware team members about it so that work can direct in a relevant direction.

Conclusion

It gets concluded from the above report that scope helps a project to become successful. With the scope statement, the project has directed in a relevant direction without any confusion and problem. The project manager has to use the steps of the project scope management so that all activities and operations lead in the right direction. Project scope creep has defined as a major issue in modern projects. This has controlled with documentation, awareness to team members. It causes the failure of a project and overlaps the budget. For managing scope creep, the company has to develop a control change process.

References

Ajmal, M., Khan, M. and Al-Yafei, H., 2019. Exploring factors behind project scope creep–stakeholders’ perspective. International Journal of Managing Projects in Business.

Kendrick, T., 2015. Identifying and managing project risk: essential tools for failure-proofing your project. Amacom.

Madhuri, K.L., Suma, V. and Mokashi, U.M., 2018. A triangular perception of scope creep influencing the project success. International Journal of Business Information Systems, 27(1), pp.69-85.

Monnappa, A., 2020. What is Project Scope Management and Why It’s Important? [Online] Simpli Learn. Available at: https://www.simplilearn.com/project-scope-management-importance-rar89-article. [Accessed on: 1st May 2020].

Ray, S., 2013. Ways to Avoid Scope Creep. [Online] Project Manager. Available at: https://www.projectmanager.com/blog/5-ways-to-avoid-scope-creep. [Accessed on: 1st May 2020].

Scope creep: manage scope wisely for a successful project, 2020. [Online] Project Management Qualification. Available at: https://www.projectmanagementqualification.com/blog/2019/03/07/manage-scope-creep/. [Accessed on: 1st May 2020].

Shirazi, F., Kazemipoor, H. and Tavakkoli-Moghaddam, R., 2017. Fuzzy decision analysis for project scope change management. Decision Science Letters, 6(4), pp.395-406.

Shrivastava, A.A. and Hariharan, S., 2015. Deliverable Management In Projects. International Journal of Engineering and Computer Science, 4(06).

Siemens, L., 2016. Project management and the digital humanist. Doing digital humanities: Practice, training, research, pp.343-57.

Wawira, M.C. and Susan, W.E.R.E., 2019. Effects of project management practices on community development in Nairobi city county. International Journal of Project Management, 1(1).

Introduction

In the report, the analysis of Baxil Electronics case will be done so as to analyze various investment related activities. The various models and theories related to finance will be looked upon so that the areas to attain profit can be determined. The IRR, payback period and various other factors of capital budgeting has been analyzed of case so that the actual return earned from investment can be resolute. With this the report will also indulge literature review of Baxil Electronics case so as to examine the factors that impact production of PDA.

1. Factors affecting the production of PDA

In the words of Bitar, et. al., (2018, pp.227-262), Personal Digital Assistant is a model where data are being put away. It is a capacity gadget which can really store the information and data to a lot of capacity. Baxil Electronics needs to really build up the model so as to really have the best electronic gadget in the market. Individual advanced partner is an exceptional thing with assortment of tropical shading with pre-modified music. Electronic things are constantly influenced by the adjustment in the innovation likewise with increment in the further developed innovation can additionally draw in the clients towards the utilization of the items (Shirvan, et. al., 2017, pp.811-825). Given that this is an electronic thing nearby can be a few components which can influence creation of PDA, for example, variations in the innovation, refreshing of the new-fangled highlights, along with increment in the opposition in the bazaar when this have constrained the Baxil to let behind their cost of the PDA.

According to Dumont, et. al., (2018, pp.294-306), Innovation assumes an indispensable job in influencing the PDA model. For this supportability, successful items ought to be delivered by the Baxil Electronics. In the present time, it is critical to continue in the market. So as to be best association with respect to the items, assembling of PDA may be impacted as of now it is giving fewer advantages to Baxil Electronics. Further author also suggested that for gaining more measure of benefit, Baxil Electronics may create great PDA model (VanderWeele and Ding, 2017, pp.268-274). It is on the grounds that the current PDA model has constrained highlights and inventiveness because of which Baxil Electronics is really confronting bunches of issues with respect to putting away the entirety of their information and proof.

2. Methods available for evaluating the project

There are various methods that are existing for the appraisal of project in the organization so that the decision related to investments can be taken through the stakeholders.

Net Present Value:

In the view of Gupta and Pradhan (2017), Net present worth is functional to the succession of ready money flows that are happening at distinct levels. The current value of the cash flows is totally reliant ahead the hiatus of time currently along with the cash flows. In Baxil Electronics, this tool can be used to determine the inflow as well as outpouring of cash.

Payback Period:

Gupta (2017, p.45) suggested that payback period is one of the tool of capital budgeting which depicts the time mandatory to regain the burial exhausted in the speculation otherwise to achieve the breakeven point. This method will enable Baxil Electronics in determining the time period in which the value of investment can be recovered.

Internal Rate of Return:

According to Hamdia, et. al., (2018, pp.95-109), IRR is the technique used to measure the estimated prosperity or revisit of the potential projects. Through this, Baxil Electronics will be able to analyze the rate of return which will be available on PDA. With this, it will also help in determining the viability and reliability of the project.

Profitability Index:

Hofer, et. al., (2018, p.04017205), stated that profitability index is also known as profitability ratio which is the ratio of induces to the outlay for the planned project. It will help Baxil Electronics in ranking the project as it allows enumerating the sum of worth fashioned per element of savings.

Annuity Method:

In the opinion of Maroyi and van de r Poll, (2012, p.9279), annuity method of depreciation is worn to examine the downgrading on the worth of assets by evaluating the rate of return. Baxil Electronics, through this method will establish the internal rate of return happening money inflows furthermore outflows of property.

3. Payback period of the project

Working Notes:

Particulars	Amount
Expansion of prototype	750,000
Marketing revise	200,000
Variable cost	155
Fixed cost	4,700,000
Unit price	360
Equipment (7 Years)	21,500,000
Equipments Price (Annually)	4,100,000

Sales volume
Years	Amount ($)
1	74,000
2	95,000
3	125,000
4	105,000
5	80,000

Depreciation Calculation
Year	Amount & Depreciation
	$ 21,500,000.00
1	$ 3,072,350.00
2	$ 5,265,350.00
3	$ 3,760,350.00
4	$ 2,685,350.00
5	$ 1,919,950.00
Total Depreciation	$ 16,703,350.00
Net asset amount	$ 4,796,650.00

Value of sales =4,100,000

Loss on sale of equipment

= $4,796,650 – $4,100,000

= $696,650

Loss on tax benefit = $694,650 * 35%

= $ 243,827.5

Net Sales= Sales + Tax Benefit

= $4,100,000 + $243,827.5

= $ 4,343,827.5

Cash Flow of the project:

Particulars	Year 0 ($)	Year 1 ($)	Year 2 ($)	Year 3 ($)	Year 4 ($)	Year 5 ($)	Year 6 ($)
Sales		$ 74,000.00	$ 95,000.00	$ 125,000.00	$ 105,000.00	$ 80,000.00
Revenue		$ 26,640,000.00	$ 34,200,000.00	$ 45,000,000.00	$ 37,800,000.00	$ 28,800,000.00
Less: Variable cost ($155 per unit)		$ 11,470,000.00	$ 14,725,000.00	$ 19,375,000.00	$ 16,275,000.00	$ 12,400,000.00
Less: Fixed cost		$ 4,700,000.00	$ 4,700,000.00	$ 4,700,000.00	$ 4,700,000.00	$ 4,700,000.00
Less: Depreciation		$ 3,072,350.00	$ 5,265,350.00	$ 3,760,350.00	$ 2,685,350.00	$ 1,919,950.00
Profit Annually		$ 7,397,650.00	$ 9,509,650.00	$ 17,164,650.00	$ 14,139,650.00	$ 9,780,050.00
Tax @ 35%		$ 2,589,177.50	$ 3,328,377.50	$ 6,007,627.50	$ 4,948,877.50	$ 3,423,017.50
Profit after tax		$ 4,808,472.50	$ 6,181,272.50	$ 11,157,022.50	$ 9,190,772.50	$ 6,357,032.50
Add: Depreciation		$ 3,072,350.00	$ 5,265,350.00	$ 3,760,350.00	$ 2,685,350.00	$ 1,919,950.00
Cash flow after tax		$ 7,880,822.50	$ 11,446,622.50	$ 14,917,372.50	$ 11,876,122.50	$ 8,276,982.50
Less: cost of assets	$ 21,500,000.00
Less: working Capital		$ 5,328,000.00	$ 6,840,000.00	$ 9,000,000.00	$ 7,560,000.00	$ 5,760,000.00
Add: Salvage value net of tax						$ 4,343,827.50
Add: working capital unconfined			$ 5,328,000.00	$ 6,840,000.00	$ 9,000,000.00	$ 7,560,000.00	$ 5,760,000.00

Cash flow	$ (21,500,000.00)	$ 2,552,822.50	$ 9,934,622.50	$ 12,757,372.50	$ 13,316,122.50	$ 14,420,810.00	$ 5,760,000.00

Payback Period:

Year	Cash Variation ($)	Cumulative ($)
0	$ (21,500,000.00)	$ (21,500,000.00)
1	$ 2,552,822.50	$ (18,947,177.50)
2	$ 9,934,622.50	$ (9,012,555.00)
3	$ 12,757,372.50	$ 3,744,817.50
4	$ 13,316,122.50	$ 17,060,940.00
5	$ 14,420,810.00	$ 31,481,750.00
6	$ 5,760,000.00	$ 37,241,750.00

Payback Period = 2.71 years

Commencing the higher than table it can be seen that the payback epoch of Baxil Electronics has been evaluated and the results depicts that the return on PDA will be received in 2.71 years (Shaban, et. al., 2017, pp.175-179).

4. Profitability Index of Project

Required rate of return 12%

Year	Cash inflow	Discounting factor rate (12%)	Present value
0		1
1	$ 2,552,822.50	0.892	$ 2,277,117.67
2	$ 9,934,622.50	0.797	$ 7,917,894.13
3	$ 12,757,372.50	0.711	$ 9,070,491.85
4	$ 13,316,122.50	0.635	$ 8,455,737.79
5	$ 14,420,810.00	0.567	$ 8,176,599.27
6	$ 5,760,000.00	0.5066	$ 2,918,016.00
Total			$ 38,815,856.71

Profitability Index = 1.81

5. IRR of the project

Year	Cash inflow/Outflow
0	$ (21,500,000.00)
1	$ 2,552,822.50
2	$ 9,934,622.50
3	$ 12,757,372.50
4	$ 13,316,122.50
5	$ 14,420,810.00
6	$ 5,760,000.00

Rate of return= 18%

Expected return= 45%

IRR = 33%

6. Sensitivity in NPV for change in price

NPV when rate of return is 18%

NPV
Year	Cash inflow/Outflow
0	$ (21,500,000.00)
1	$ 2,552,822.50
2	$ 9,934,622.50
3	$ 12,757,372.50
4	$ 13,316,122.50
5	$ 14,420,810.00
6	$ 5,760,000.00

Rate of return = 18%

NPV= $9210418.07

Assuming increase in price by 10%

New price

=360*110/100

=396 per unit

Particulars	Year 0 ($)	Year 1 ($)	Year 2 ($)	Year 3 ($)	Year 4 ($)	Year 5 ($)	Year 6 ($)
Sales		$ 74,000.00	$ 95,000.00	$ 125,000.00	$ 105,000.00	$ 80,000.00
Revenue ($396 per unit)		$ 29,304,000.00	$ 37,620,000.00	$ 49,500,000.00	$ 41,580,000.00	$ 31,680,000.00
Less: Variable cost ($155 per unit)		$ 11,470,000.00	$ 14,725,000.00	$ 19,375,000.00	$ 16,275,000.00	$ 12,400,000.00
Less: Fixed cost		$ 4,700,000.00	$ 4,700,000.00	$ 4,700,000.00	$ 4,700,000.00	$ 4,700,000.00
Less: Depreciation		$ 3,072,350.00	$ 5,265,350.00	$ 3,760,350.00	$ 2,685,350.00	$ 1,919,950.00
Profit earned annually		$ 10,061,650.00	$ 12,929,650.00	$ 21,664,650.00	$ 17,919,650.00	$ 12,660,050.00
Tax Rate @ 35%		$ 3,521,577.50	$ 4,525,377.50	$ 7,582,627.50	$ 6,271,877.50	$ 4,431,017.50
Profit after tax		$ 6,540,072.50	$ 8,404,272.50	$ 14,082,022.50	$ 11,647,772.50	$ 8,229,032.50
Add: Depreciation		$ 3,072,350.00	$ 5,265,350.00	$ 3,760,350.00	$ 2,685,350.00	$ 1,919,950.00
Cashflow after tax		$ 9,612,422.50	$ 13,669,622.50	$ 17,842,372.50	$ 14,333,122.50	$ 10,148,982.50
Less: cost of assets	$ 21,500,000.00
Less: working Capital		$ 5,860,800.00	$ 7,524,000.00	$ 9,900,000.00	$ 8,316,000.00	$ 6,336,000.00
Add: Salvage value net of tax						$ 4,343,827.50
Add: working capital released			$ 5,860,800.00	$ 7,524,000.00	$ 9,900,000.00	$ 8,316,000.00	$ 6,336,000.00
Cash flow	$ (21,500,000.00)	$ 3,751,622.50	$ 12,006,422.50	$ 15,466,372.50	$ 15,917,122.50	$ 16,472,810.00	$ 5,760,000.00

NPV when rate reduces to 12%

Year	Cash inflow/Outflow
0	$ (21,500,000.00)
1	$ 3,751,622.50
2	$ 12,006,422.50
3	$ 15,466,372.50
4	$ 15,917,122.50
5	$ 16,472,810.00
6	$ 5,760,000.00
Rate	12%
Net present value	$22,152,408.08

Sensitivity @ 12%

Particulars
% change in NPV	140.51
% Change in price	10
Sensitivity	14.051

7. Sensitivity in NPV to change in the quantity sold

It has been assumed that there is 5% decrease in the quantity sold of new PDA

Particulars	Year 0 ($)	Year 1 ($)	Year 2 ($)	Year 3 ($)	Year 4 ($)	Year 5 ($)	Year 6 ($)
Sales		$ 70,300.00	$ 90,250.00	$ 118,750.00	$ 99,750.00	$ 76,000.00
Revenue ($360 per unit)		$ 25,308,000.00	$ 32,490,000.00	$ 42,750,000.00	$ 35,910,000.00	$ 27,360,000.00
Less: Variable cost ($155 per unit)		$ 10,896,500.00	$ 13,988,750.00	$ 18,406,250.00	$ 15,461,250.00	$ 11,780,000.00
Less: Fixed cost		$ 4,700,000.00	$ 4,700,000.00	$ 4,700,000.00	$ 4,700,000.00	$ 4,700,000.00
Less: Depreciation		$ 3,072,350.00	$ 5,265,350.00	$ 3,760,350.00	$ 2,685,350.00	$ 1,919,950.00
Profit earned annually		$ 6,639,150.00	$ 8,535,900.00	$ 15,883,400.00	$ 13,063,400.00	$ 8,960,050.00
Tax rate @ 35%		$ 2,323,702.50	$ 2,987,565.00	$ 5,559,190.00	$ 4,572,190.00	$ 3,136,017.50
Profit after tax		$ 4,315,447.50	$ 5,548,335.00	$ 10,324,210.00	$ 8,491,210.00	$ 5,824,032.50
Add: Depreciation		$ 3,072,350.00	$ 5,265,350.00	$ 3,760,350.00	$ 2,685,350.00	$ 1,919,950.00
Cashflow after tax		$ 7,387,797.50	$ 10,813,685.00	$ 14,084,560.00	$ 11,176,560.00	$ 7,743,982.50
Less: cost of assets	$ 21,500,000.00
Less: working Capital		$ 5,061,600.00	$ 6,498,000.00	$ 8,550,000.00	$ 7,182,000.00	$ 5,472,000.00
Add: Salvage value net of tax						$ 4,343,827.50
Add: working capital released			$ 5,061,600.00	$ 6,498,000.00	$ 8,550,000.00	$ 7,182,000.00	$ 5,472,000.00
Cash flow	$ (21,500,000.00)	$ 2,326,197.50	$ 9,377,285.00	$ 12,032,560.00	$ 12,544,560.00	$ 13,797,810.00	$ 5,760,000.00

Net present value
Year	Cash inflow/Outflow
0	$ (21,500,000.00)
1	$ 2,326,197.50
2	$ 9,377,285.00
3	$ 12,032,560.00
4	$ 12,544,560.00
5	$ 13,797,810.00
6	$ 5,760,000.00
Rate	12%
Net present value	$13,693,529.15

Sensitivity Analysis

% change in NPV	48.67
% Change in quantity	-5%
Sensitivity	-973.4

8. Decision to proceed with the investment during corona virus period

No, it can be said that it will not be fruitful to go with the speculation through the stage of corona virus due to the fact that doing investment in the new framework will require large amount of cost as well as finances. Individuals in economy are incurring a large amount of losses during the pandemic. The investment in new projects should be avoided but the existing projects needs to more enhanced and improved so that the overall success of the organization as well as business can be maintained in the market.

Conclusion

From the above report it can be summarized that investment appraisal techniques plays an important role for taking the decisions related to investment. Baxil Electronics has used various tools in order to analyze the idea of investing into new PDA which depicted that the investment should be done in PDA as it will enable in proving the positive results in near future i.e 2.71 years which is approximately 3 years. Therefore, it can be said that for all the organization it is necessary to determine the practicality and helpfulness of project.

References

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Introduction:

This assignment describes the significance and the role of an accountant related to his or her, work, job responsibilities, rights and attitudes towards his work. A proper survey and search will be done in the regards of analysing the key accounting roles and profile of an accountant related to ASX companies. This study will include the ways to describe the jobs of corporate accountants, financial accountants and including their duties, required skills and talents. A proper assignment structure will be given in this study, where it will provide knowledge of companies’ strategies to hire eligible and skilled accountants as per their requirements. The skills and requirements we need in an accountant will be considered in this study to progress the work profile. An accountant would be qualified and shortlisted as per their requirements and duties of the companies related to this corporate accountant job. An accountant job role should have contained all necessary attributes related to the development in this profile.

Collection and details of job advertisement data and sources:

With effective research and survey, it can be said that there are around 5000+ accounting jobs on Indeed Australia. There are around 4578 job profiles related to financial and corporate accounting jobs to Seek Australia. Total 11265 profiles in Jora Australia related to Australian Accounting jobs. There is around 24863 accounting profile related to accountant jobs in Australia we can find in online job sites specifically in Jora, Indeed and Seek.

After the survey, the job information collected from different job sources such as Seek, Indeed and Jora. Total collected job information and details related to corporate accountants in Australia were collected from all these job portals are total 30.

Serial No.	Source of Job corporate accountants	Total job advertisement
1	Indeed	15
2	Seek	5
3	Jora	10

Name of the organisation and industrial Breakdown:

Name of the organisations	Industrial Breakdown	Location
Intuitive Recruitment	Recruitment Industry	Sydney – NSW
Racing Victoria	Media Organisation	Docklands VIC
Beach Energy Ltd	Oil & Gas	Sydney – NSW
MPAU Finance	Finance Sector	Brisbane QLD
Hedley Scott Recruitment	Recruitment industry	Sydney-NSW
C CAR Installations	Manufacturing Company	Sydney-NSW
Waterlogic	Manufacturing Company	Osborne-Park WA
Pirtek Fluid Systems	Fluid and Hydraulic	Kings Park NSW
Doyle Executive	Foreign affairs	Sydney NSW
DFP Recruitment	Recruitment Agency	Kings Park WA
HR Matrix Pty Ltd	Employment and recruitment	Brisbane QLD
Konnexus	Consulting Agency	Sydney – NSW
Aldi Stores	Groceries	Kings Park
Talent Options Sydney	Human Resources	Sydney – NSW
Mine Super	Recruitment Agency	Sydney Park
Suncorp	Banking and Finance	Sydney Park
Robert Half Financing and accounting	Finance Sector	Kings Park NSW
Future you	Recruitment Agency	Brisbane QLD
Paybang Pty Ltd	Not applicable	Sydney Park
Orbital Australia	Fuel and gas	Brisbane QLD
T+O+M executive	Recruitment firm	Osborne-Park WA
TW Power Services Pvt. Ltd	Energy and Power	Sydney Park
Moore Stephens Pvt Ltd	Finance and Accounts	Kings Park NSW
Accent Resources NI	Food	Sydney Park
GFG Alliance	Energy	Brisbane QLD
2X M Finance	Finance	Osborne-Park WA
Moir Group	Finance	Brisbane
Robert Walter	Recruitment	Sydney – NSW
DFp Accounting	Energy	Sydney – NSW
Redpath Partners Pty Ltd	Energy	Sydney – NSW

Job title and the description mentioned in Job portal and advertisement:

Serial No.	Job portals	Job ads & Titles
1	Indeed	Corporate Accountant, Senior Accountant-corporate, Assistant Accountant, Financial Investor, Accountant – corporate assistant. Assistant accountant. Corporate accountant, financial accountant, Accountants, Assistant Corporate Accountant. Treasury accountant, accounting payable clerk, Forensic Accountant
2	Jora	Payable Accountant, receivable Accountant, Corporate Accountant, Assistant Accountant – corporate. Assistant accountant. Corporate accountant, financial accountant, Accountants, Assistant Corporate Accountant.
3	Seek	Assistant accountant. Corporate accountant, financial accountant, Accountants, Assistant Corporate Accountant. Treasury accountant, accounting payable clerk, Forensic Accountant Corporate Accountant, Senior Accountant-corporate, Assistant Accountant, Financial Investor, Accountant – corporate assistant.

Personal attributes needed in corporate accountant mentioned in job advertisement:

The personal attributed which are required in the corporate accountant mentioned in the job advertisement given below:

The person should have accounting skills and experience to pay attention and the ability to work under pressure.
The accountant has to carry interpersonal skills and excellent communication skills to maintain the relationship between accounting requirements and cost.
An individual should possess the intellectual skills, practical thinking, quick decision-making ability and ability to adapt to new challenges.
The person should be ambitious, creative, practical and should bring various initiatives to perform their responsibilities.
The person should be able to work with a team, coordinate with team members and seniors and work under pressure.
The person should be able to value their work, ready to give their 100% with devotion and dedication (Balakrishnan, et, al., 2018).
The individual should possess technical skills to make a decision quickly, should have positive and collaborative attitudes towards work.
The person should be strong practical and analytical skills to understand the requirements and needs of the company.
They should have a focus on minor changes and requirements that help them to create logical solutions.
An individual should possess the ability to motivate the people and their team in the organisation.
The person should be able to communicate clearly and have a spirit to drive a team.
They should possess an ability to figure out the things and play a dynamic role as a team player to encourage their team regularly.
An i
ndividual should be able to handle responsibilities and meet the deadline of the organisation and department.
The person should be passionate about their work and task to help the team and department to achieve targets and goals.
The person should be target solver, practical thinker, capable to handle pressure and able to handle the situation related to clients and stakeholders.
Must have the ability to become a corporate supportive and creative thinker, good leader and supporter for others in the team member (Ellis, 2018).

Key roles and task and job responsibilities of corporate accountants given in the advertisements:

The listed task and job required responsibilities given in the job advertisement for a corporate accountant is given below:

Financial and accounting reporting is required to be done monthly, quarterly and annually.
A person needs to complete all bookkeeping tasks, taking care of financial data and implication effectively.
To prepare the financial report, balance sheet and consolidated statements of accounting books of the organisation.
Able to handle SAP – different accounting modules.
To prepare and present bookkeeping and handle the complete valuation of business entities.
Compiling bank statements and accounting records of the company.
The corporate accountant needs to join the team as soon as possible and perform a different role in a team.
Looking for a person who can understand business accounting needs and bale to perform financial reports and transactions effectively.
Ability to define mistake and figure out the errors in transactions, hands-on-experience of using Different SAP modules and financial software and accounting systems.
Ability to figure out treasury and tax accounting management effectively to measure data and financial evidence.
Seeking for experienced and hardworking employee and the candidate who can timely process the requirement, accounting process, delivery and information.
The person who assist their senior and support junior in the team.
Ability to understand the attend recurrent financial and accounting journals and vales.
Preparing financial statements, applicating various accounting rules and regulations.
Able to implicate accounting standards and regulate the budgeting process, it will be helpful for the company to manage finance by the council (Adhariani, et, al., 2019).
Understand and govern complex demands of accounting norms and standards-based financial process.
Working with seniors, able to give reporting timely to provide effective accounting solutions and decision-making process in the business.
The person should be able to manage than the requirement of accounting department with the help of accounting standards and corporate norms (Allen, et. al., 2018).
He can work and perform well to support the accounting department to provide quality services to the organisation.
Maintenance of accounting software, SAP and create logical analysis to give accurate feedback about the financial condition of the companies.
Able to prepare and, making journals, posting ledgers perform ledgers and compiling data with the other relevant adjustments.
Handle all mandatory regulations, preparing analytical reports, submitting the consolidated financial reports and statements to the company (Ellis, 2018).

Professional and accounting qualification needs to be posted in the job advertisements:

The various academic and professional qualification needs are addressed in the job portals related to corporate accountants:

The person should possess a degree of Bachelors in Accounts and Finance, should have completed CA and have more than 3 years of experience practising as a qualified CA.
The person should be well experienced and depth knowledge of financial regulation, accounting and taxation amendments occurred every year (Nasr, et, al., 2018).
Should be possessed depth knowledge of accounting standards and have hands-on experience working with accounting firms for more than 3 years (Owolabi, 2019).
An individual should have well experience in tertiary qualification in accounting and knowledge of the field of finance and accounts.
Ability to understand the attend recurrent financial and accounting journals and vales.
Preparing financial statements, applicating various accounting rules and regulations.
Able to implicate accounting standards and regulate the budgeting process, it will be helpful for the company to manage finance by the council (Adhariani, et, al., 2019).
Understand and govern complex demands of accounting norms and standards-based financial process.
Working with seniors, able to give reporting timely to provide effective accounting solutions and decision-making process in the business.
The person should be able to manage than the requirement of accounting department with the help of accounting standards and corporate norms (Allen, et. al., 2018).
He can work and perform well to support the accounting department to provide quality services to the organisation.
Looking for a person who can understand business accounting needs and bale to perform financial reports and transactions effectively.
Ability to define mistake and figure out the errors in transactions, hands-on experience of using Different SAP modules and financial software and accounting systems.
Ability to figure out treasury and tax accounting management effectively to measure data and financial evidence.
Seeking for experienced and hardworking employee and the candidate who can timely process the requirement, accounting process, delivery and information.
A person should possess knowledge of Microsoft offices and access.
Should be able to understand the accounting requirements and prior qualification and experience in the field of cost accounts.
Knowledge and experience of an audit or chartered accounting process should be able to adapt to handle the work of 1000+ people (Owolabi, et, al., 2019).
The person should have the ability to qualify the accounting aspects and can prepare a financial statement and working experience with SAP.
Experience in the areas of Taxation handling, profit and expenses records and handle deferred tax calculations.
SAP, ORACLE and TM1 is the plus. An individual can handle taxation and budgeting responsibilities of the company, able to work to enhance the rapport of the company.

The key roles learnt in MPA unit and the terms related to the advertisement collected:

There are various tasks, roles and job responsibilities collected in job advertisement from different job portal in Australia which is necessary for a corporate accountant to possess such as responsibilities and roles. These are:

Managing financial data:

As per task learnt in the unit, this is the initial task of an accountant to manage its corporate roles and responsibilities. The role of an accountant includes various categories such as preparation and presentation of reports and accounting data, handle bookkeeping and organisational structure part related to tax, budget, cost and revenue. The corporate accountants need to take care of accounting systems, manage records, books and vouchers efficiently. The corporate accountant has to manage to cost and figure out actual financial conditions through the financial report prepared quarterly, annually and monthly (Nasr, et, al., 2018).

Preparing financial statements and reports according to various accounting standards and rules.
Working as a helping hand in an operational and financial matter to create accurate and exact financial capital reports for investor and stakeholders. It helps the council and other people in the department to complete the budgeting process effectively.
Managing financial evidence, vouchers and invoices using SAP and TM1 software for accurate and error-free ledger and journals for the department (Schroeder, et, al., 2019).

Accounting report preparation:

The next of the Accountant incorporate field is to figure the errors and mistakes while making and preparing accounting report, an accountant takes care of vouchers, invoices and other accounting transactions and entries should be transacted based on evidence and proves, financial and accounting report are prepared essentially on monthly, quarterly and annual basis. The report needs to be prepared error and mistakes free after taking care of different accounting principles such as dual aspects principles, accrual principle and principle of consistency for the business (Okwuosa & Amaeshi, 2018).

Preparation and presentation of profit and loss accounts.
Compiling and consolidating the financial accounts and budgeting process.
To prepare the report and present analytical report in the group before submitting consolidated financial results to the German Group.

Regulatory and financial bodies:

The corporate accountant should be taken care of their responsibilities of handling accounting standards, performing accounting deadlines without missing internal and external deadlines. Regulatory bodies make accounting norms and standards which are needed to be resolved and performed on time with the help of accurate and qualified data (Wardhana, 2018).

The person should have the ability to exercise the responsibilities, manage accounting data and financial costs (Adhariani, et, al., 2019).
Able to compare projected and actual financial report according to accounting principles and standards.
Can prepare analytical reports after submitting a report to meet the deadlines.
Consolidation of financial and accounting data within the organisation (Ellis, 2018).

Additional topic missing in Unit MPA but those are listed in the Job description of Corporate accountants:

Missing points in MPA units are:

Analytical advisor:

The corporate accountants should be able to handle the analytical task and give analytical advice to the necessary team. The information they can use to manage the logical demands of finance for the existence of the business. Corporate accountants should work as a logical and analytical advisor so that management can use their skills in making financial decisions effectively (Crowther, 2018).

The person should have technical skills to take technical decision based on accounting abilities.
A person should be interpersonal skills to motivate team members and prepare financial accounts quarterly and annually.
Should be responsible to handle group accounting meetings, take decision-related to statutory matters of compliance, ASX reporting and accounts investors listing.
Responsible to assist corporate trainers, CA and higher accounting authorities.
Give assistance and support to finance managers, provide authority and quality services in accounting services (Warren & Jones, 2018).

External business targets:

The corporate accountants should be able to work accounting professionals, they should understand the requirements of business affiliations and. Financial professionals expect from financial experts to perform their roles and responsibilities in regards to ASX reporting, handling the accounting process of the organisation.

The accountant should have abled to handle and engage in maintaining financial transparency. The example of such job description is given below:

The person should be able to prepare analytical skills and financial reports.
Understand the needs of transparency of financial information that involves business changes, financial innovative skills and ability to understand business needs. (Balakrishnan, et, al., 2018).

Skills, responsibilities and attributes needed to become a corporate accountant:

Innovation:

Accounting standards and principles are needed to be implemented in the business from the first day it started. Innovative and creative ideas are necessary for the business to handle the cost and revenue generation process. Corporate accountants should have skills and attributes to understand business challenges and give analytical advice to the company. Innovation is necessary for ideas, views and business which is mentioned in the job description for the accountants that states and delivers the needs of innovation skills in employees (Smith, 2018).

Understanding of accounting norms:

The corporate accountant should be able to handle accounting work based on his analytical The next of the Accountant incorporate field is to figure the errors and mistakes while making and preparing accounting report, an accountant takes care of vouchers, invoices and other accounting transactions and entries should be transacted based on evidence and proves, financial and accounting report are prepared essentially on monthly, quarterly and annual basis (Pal, 2019).

Enthusiasm:

The corporate accountant should have a responsibility to show enthusiasm in their jobs and able to encourage their team members in the organisation. Accountants should have practical thinker and problem solver that add power to their duties. The person should have brought energy and enthusiasm to their team members and enhance the engagement of accounting skills. The person should have the ability to exercise the responsibilities, manage accounting data and financial costs. Able to compare projected and actual financial report according to accounting principles and standards. Accountants can prepare analytical reports after submitting a report to meet the deadlines & consolidation of financial and accounting data within the organisation (Schroeder, et, al., 2019).

Conclusion

The role of an accountant includes various categories such as preparation and presentation of reports and accounting data, handle bookkeeping and organisational structure part related to tax, budget, cost and revenue. The corporate accountants need to take care of accounting systems, manage records, books and vouchers effectively. This study included different ways to describe the jobs of corporate accountants, financial accountants and including their duties, required skills and talents. A proper assignment structure has been given in this study, where it will provide knowledge of companies’ strategies to hire eligible and skilled accountants as per their requirements. The skills and requirements we need in an accountant were considered in this study to progress the work profile. An accountant was to be qualified and shortlisted as per their requirements and duties of the companies related to this corporate accountant job (Allen, et. al., 2018).

References

Allen, A. M., Ramanna, K., & Roychowdhury, S. (2018). Auditor lobbying on accounting standards. Journal of Law, Finance & Accounting, Forthcoming.

Schroeder, R. G., Clark, M. W., & Cathey, J. M. (2019). Financial accounting theory and analysis: text and cases. John Wiley &Sons.

Smith, M. (2018). Luca Pacioli: The father of accounting. Available at SSRN 2320658.

Warren, C., & Jones, J. (2018). Corporate financial accounting. Cengage Learning.

Balakrishnan, K., Blouin, J. L., & Guay, W. R. (2018). Tax aggressiveness and corporate transparency. The Accounting Review, 94(1), 45-69.

Crowther, D. (2018). A Social Critique of Corporate Reporting: A Semiotic Analysis of Corporate Financial and Environmental Reporting: A Semiotic Analysis of Corporate Financial and Environmental Reporting. Routledge.

Nasr, M. A., & Ntim, C. G. (2018). Corporate governance mechanisms and accounting conservatism: evidence from Egypt. Corporate Governance: The International Journal of Business in Society, 18(3), 386-407.

Ellis, C. (2018). Why ambitious corporate accountants should extend their role beyond finance. Professional Accountant, 2018(32), 24-24.

Okwuosa, I., & Amaeshi, K. (2018). Sustainability reporting and the professional accountant in Nigeria.

Adhariani, D., Siregar, S. V., & Yulius, R. (2019). Borderless with Unequal Opportunity? Experts’ Perspectives on the ASEAN Economic Community and the Impact on Indonesian Accountant Profession. The Qualitative Report, 24(5), 1147-1167.

Pal, N. R. (2019). Corporate Governance-Mapping and Imaging the Swot on Real-Time a Bare Minimum in Assurance to Growth and Sustainability. The Management Accountant Journal, 54(2), 40-45.

Owolabi, S. A. (2019). Quality Accounting Service a Panacea to Effective Corporate Governance. Available at SSRN 3382381.

Wardhana, D. Y. (2018). Good Corporate Governance Practices in Family Business: A Case Study in Indonesia. Petra International Journal of Business Studies, 1(1), 35-44.

Introduction

In this assignment, we are going to discuss the strategy models used by the current business houses in practical life. These strategy models help us to determine the performance of the company. It helps the company to provide an insight into the weakness and opportunities that the company occurs during the business life span. In this assignment, we are going to relate these models to the practical world. The strategy models help in identifying how the business can grow with the right amount of profitability. With the help of these models, a business can also think about the future capabilities of the organization. The model provides the perspective for optimizing both the short term and long term objectives. For the analysis of the models, the company taken is the BHP Group Limited which is based in Australia but serves worldwide. It deals in Metal and Mining industry.

Strategy development models

The strategy models describe how one company operate and what the opportunities that come in the future. The company has a sufficient amount of resources to grab those opportunities. The different business uses different models and it depends on the output of the business and its standing in the market. The various types of models are

Resource base view model defines the use of a resource that the firm uses to achieve sustainable competitive advantage. The resources used by the business can be tangible and intangible.
The input-output model helps to determine the amount of productivity with the small number of resources in the given time frame. The less amount of inputs are used to gain high productivity is the best method.
Ansoff matrix model helps the management team of the organization by developing strategies for future growth. It also shows the risk of the strategies developed.
Generic strategies model shows that to gain a competitive advantage the three options can be used and that are cost leadership, differentiation and focus. Every option focuses on the different needs of the organization (Phadermrod, et. Al., 2019).

Model 1 SWOT Analysis

It is the model used to analyze the strength, weakness, opportunities, and threats relating to the business organization. It helps in decision making and the planning process of any strategy. It identifies both the internal and external factors. It is used by the profit-making company as well as nonprofit organizations. This model helps in marketing and also shows the weakness of the competitor that becomes the strength of the other company. If there is any problem in any new decisions that it should be made or not than the SWOT analysis of that decision should be made and then the decision should be made.

SWOT analysis model can be used to revise the models used, planning process, helps in decision making, to identify the barriers, and reveal the opportunities and limitations. It helps in organizing the information and identify the barriers in the organization that prevent the company from growing. It helps in filling the gaps relating to cultural differences.

SWOT analysis is used by BHP managers to do the situational analysis of the company. This analysis is done with the help of effective and efficient coordination of all the team working in the company for the betterment and future opportunities (Gürel & Tat, 2017). There are various points find by the company during the analysis of the company with the help of this model. All the following points are depicted here in the diagram below

PESTEL Analysis

It is the strategic analysis of the model on the basis of the macro-environment factors and the external environment factors also. It is the tool that understands the business and the decisions made by them. It understands the market growth of the business and its financial position in the competitor’s industry. The PESTLE analysis factors include political, economic, social, technological, environmental and all the legal factors. The factors vary according to the nature of the company. Some of the company which is small in nature only affected by some of the factors but the large business houses are affected by all the factors. It identifies the business needs and solution to the identified problems.

BHP also uses this tool for the analysis of the macro-environmental and other factors. Changing in the factors also affect the business in the positive and negative factors. If the government changes any tax policy then the company has also get effected because either the company has to extra tax amount or any other reason. It also impacts the players that are involved with the BHP Company. The factors can impact the competitive advantage and the profitability of the company. The analysis provides detail about the challenges that the organization has to face due to a change in the factors (Dulčić, et. Al., 2012). The various factors affecting the BHP Company are as follows

Porter’s five forces

It is the strategy model used by the companies to analyze the competition in the business. If any company affected by all these five forces negatively then the company is going to reduce its profitability in the market. The porter’s forces are the bargaining power of suppliers and buyers and the threat of new substitute and threat of new entrants. The analysis is done on these factors only which help the firm to decide its standing in the market. It affects the company ability to serve its customers and making the profit. It is done for the purpose of making qualitative strategic decision making in the company.

BHP Company uses the forces to decide the standing position of the business in the market and the amount of profitability in the market. It helps in enhancing the competitiveness in the Metals and the Mining industry. It discusses how the company can build a sustainable competitive advantage in the industry. The analysis of the five forces in the BHP Company are as follows

The threat of new entrants

New entrants in the industry put pressure on the BHP Company and the company has to lower the price to remain in the market for a long time. It has to provide the new value of products to the customers for building the new strategy (Burns, et. Al., 2016).

Bargaining power of suppliers

There are a large number of suppliers in the Metals industry so the bargaining powers of the suppliers are moderate and because of this they have to decrease their margin otherwise they will go to any other supplier.

Bargaining power of buyers

The power of buyers is high and they demand more products at the lowest price. This builds pressure on the company to produce the product and sustainable in the long run in the market.

Threats of new substitutes

In the Metals and Mining industry, the threats of new substitutes are high and this will impact the company products that it is offering to its customers (Cadle, et. Al., 2014).

Conclusion

From the above analysis it is concluded that the strategy used for the analysis of the company are the important to discover the various things about the company. It helps in deciding the competitive position of the business and the standing of the business in the market. These strategies can bring changes in the work of the company and develops the new idea of reducing the risk and increasing the market share in the company. The strategic tools helps in deciding the significant firm profitability in the market area. The company can also use this strategy to decide the strength and weakness and help them to cope up with these amount of risk. If the risk is identified the minimization can be done with the use of various amount of strategies.

References

Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan International Higher Education.

Cadle, J., Paul, D. and Turner, P., 2014. Business analysis techniques. Chartered Institute for IT.

Dulčić, Ž., Gnjidić, V. and Alfirević, N., 2012. From five competitive forces to five collaborative forces: revised view on industry structure-firm interrelationship. Procedia-Social and Behavioral Sciences, 58, pp.1077-1084.

Gürel, E. and Tat, M., 2017. SWOT analysis: A theoretical review. Journal of International Social Research, 10(51).

Phadermrod, B., Crowder, R.M. and Wills, G.B., 2019. Importance-performance analysis based SWOT analysis. International Journal of Information Management, 44, pp.194-203.

Tanwar, R., 2013. Porter’s generic competitive strategies. Journal of business and management, 15(1), pp.11-17.

Yüksel, I., 2012. Developing a multi-criteria decision making model for PESTEL analysis. International Journal of Business and Management, 7(24), p.52.

Introduction

The company is a perpetual identity which had a group of people which are collected to make the individual as well as the goals of the company fulfil.

The management accounting gives the way to the company to complete the individual as well as the company objectives. It can be achieved better with the management accounting. Management accounting will let the company understand the way of doing management as well as the way of reporting the statements. It clears out all the aspect of the management.

Initially company was handled with the traditional way of accounting and management. Built with the time they had realised that the improvisation for accounting and management is needed. The research was done to knee the new way of management. Many case studies had been evaluated.

Below the assignment is based on the study done by the Watts, Yapa and Dellaportas in 2014. They had taken the new concepts of accounting as well as the new strategic management. They had dined research on the multinational manufacturing company. They want to know the overall impact of the research.

The journal which had taken for the comparison was David Taylor, Robyn King; they also simplified the method of management. They had studied that the management can be done with the traditional method but the improvisation and the innovation is needed in the traditional method for the proper management.

Identify any three (3) specific examples of the different types of management accounting methods and/or techniques from the case

In the given journal it was found that the change was done in the later part of the 20th century in the accounting system. The cost accounting was introduced. The techniques like JIT; TQM was intimated in the organisations. The purpose of adopting new techniques was with the two perspectives first for the long term change and other was operational or short term change. The firm had made different goals for the different perspectives. The strategy trigger for adoption was taken into the consideration for making it successful change (Watts, et. al., 2014).

Firstly it was initiated in the research factors to identify what are the essentials of the new accountings system; later the outlines were prepared for the adoption. The next strafe was the implementation of strategy, while the last was the outcomes of the strategy

The outcome will decide the overall impact of the strategy and whether the changes can be taken for the long term or not. The 3 examples of the types of the management are:

Operational Decision making: the company applies at the Key Performance Indicators (KPI). For the facility of production. The decision makers have issues about production. That the timeframes are have short term. And the mangers were taking decision with the ground level. The company have not used ABC and Bam in the operations. There is external and internal benchmarking which will be relied on the capabilities of specific projects. They also used scorecards for managing the activities. The company is utilising all the resource to find the better way of the accounting. The new costing method bifurcate the cost of the product in the various stages. The indicators were evolved to adopt thru ABC costing in the accounts. This will help to justify the cost of operation in the product as they utilise the operating. The overall cost was not allocated in the proportion of the units produced.

Tactical decisions making: the managers were involved in the generating KPI of the plants. The decisions were making the decision son the timeframe of 6-12 months. The management use tactical decision for making decisions. The company is calculating the supply chain management and the customer demands for making the tactical decisions. The decisions are mainly depend on the external information’s of the above. Management in addition with the management accounting system they are also laying emphasis on the information gathered from the external suppliers. There are issue arising in the decision making process as little information are not accurate. The company had also tried to implement the strategy on the initial level of the management but later on they had implemented in the overall company. The gradually adoption will help to know where the company had make defaults and how it can be recovered or can be rectified.

Strategic Decision making: the company had focused on the matters which had been leaded with the tie of 1 year. The shareholders, customers and the stakeholders have to be satisfied with the requirements of the global events. All the factors which are macro and micro economics will affect the strategic decision making. These are based on the mostly internal information of the company. The balances are based on the historical checks and the balances with the expected trends. The strategic managers have to be viewed the future to make decisions and to make better progress of the company. The company had also let the strategy formulation on the new accounting techniques. The company had made the strategies that how gradually adoption of the technique will help the company to adopt it as a whole.

2. Are MAS relevant to contemporary organisations

(I) Yes MAS are relevant to the contemporary organisations. The company have to apply the management accounting for the smooth function of the business…

It helps the manager to mating the records of the accounts and to verify it if it needed on the later. It will also helps in the organisation documentarian and proper maintenance of accounts. The MAS will helps to prevent fraud and the proper accounting of the records. It will keep the records the accounts for the long time. As well as the data will be secure as it password protected.

The advantage of MAS in the given case is:

It helps in research and development of the business: it helps in the research of the organisations. The new planning is made as per the research conducted. It will helps in laying down emphasis to achieve the goals and objectives of the company. The organisation will make the new strategy for the achievement of the work.
Strategy formulation: the next step is to make the strategy. The strategy formulation is the step in which the strategy has been planed as per the requirements of the company. The formulation will be on the present as well the future issues of the company (Luthans & Doh, 2012). The company has to decide which will the best strategy among the all strategy for the company point of perspective.
Operational Cost: the operational cost will be reduces with the MAS. The cost of wastage will be reduced with the proper accounting system. There will be the proper method and balancing the inventory. The correct method of the entry and the exit of inventory will be places. It will help in reduction of stole of the inventory and the proper records with the authorisation will be placed.
Security: with the MAS the record will be properly secured and the data protection will be increased. The security of the MAS will be done through biometric as well as the password protects. The backup of the data will be taken and can be recover wt the of the disaster or the lost of the files.

Firstly it was initiated in the research factors to identify what are the essentials of the new accountings system; later the outlines were prepared for the adoption. The next stage was the implementation of strategy, while the last was the outcomes of the strategy

The outcome will decide the overall impact of the strategy and whether the changes can be taken for the long term or not.

Comparisons with the other journal

the other journals was regarding the different value of management accounting in the new company the company had tried the historical method into he new start up company but at the late stage the research was found that the traditional methods are not so good. So company had approached new methods for the innovation (Taylor, et. al., 2019).

The study was done with the Techno co, who had made start up and adopted new technology over. 12 months.

The study found that the company had adopted both the methods of traditional as well as the new methods of the accounting, and the traditional method are made with the innovation in such a way to divers the functional areas.

Another experiment was done to know how the hierarchy can be evidenced to manage the controls and how the innovated ideas can be generated with this.

Difference in findings

The findings were different in the words nit in the result. Bath studies were concluded that the transitional methods are necessary to control the management but with the new innovations or with the new ideas. The organisations cannot be run on the original method but can be improvised with the new modern accounting.

In the first case the new technology was used such as TQM or ABC to manage the casing of the product, It helpos in the manage the product and the costing method.

While in the other journal the new ideas are generated to the control the management with the traditional method. They started with the tradiotnal and reached to the new innovative method.

3. What conclusions do you make about the relevance of MAS in today’s competitive and (in most cases)

The following are the conclusions of the MAS at the today competitive market:

Forecast: the forecast of the company can be easy with the MAS. It will help in the decision making. It helps in the decision which machine should buy, whether it should invest in this project or not. Is this will give more profits to the company? The answer of the entire question will be made though the MAS. The future trends will be analysed in the company. The MAS will be useful the company for the future predictions (Myrelid & Olhager, 2015).
Cash flows: the cash flows can be managed with the MAS. It will show from where cash had seen sourced out and where it has been utilised. The MAS will be making the proper CASH flow statement which will depict the interest borne on the loan of the company and the income of internet o which the company had made the investment. The company will be managing the investment and the flow of cash on that. The cash flow will also show that the company is funding through the banks or any financial institutions, or either through the issuing of the shares. The company will be making the records of the dividends that how much was paid in the last year, and how much it is to be proposed in this year.
Variance calculations: the calculation of the variance is that the amount swill shown actual in the profit and loss will be differ from he expected. It will helps in the finding the difference between the expected an actual figures of the above. If the difference is much than the expected than the reason behind should be evaluated (Myrelid & Olhager, 2015). The MAS will give the proper accounting method to calculate the variance and the reason behind that variance by calculating the percentage on the with the expectation
Rate of Return: the shareholder or the stakeholder both wants the maximum of profits on their investments. The MAS will calculate the rate of return and it will be compared with the last years of return, the MAS will find the reason if there is any reduction in the profits nada los will evaluate the reason for the extreme increment of the return. It will also give the highest t amount expended on which content. If it can be evaded then company should evade on the report mentioned by the MAS.
Internal Control: the internal control can be done through MAS. The proper maintenance of employee’s s well as the assists can be done through MAS. The MAS will be locating the regular attendance of the employees if some employees are not performing as per the criteria then the mass will be reported on that. The MAS will also have records on the assets valuation. The valuation of the assets should be as per the norms of the accounting. The company should revaluate the assets or can impair it as the case may be.
Internal Audit: the Internal Audit of the company means to verify the management of the accounting. The internal auditors can verify each and everything as per the internal norms of the company. It wills are the audit of the company easier task, as all the records had been verified once. The internal auditor will have to manage each and every before making the fuss

4. Provide four (4) specific outcomes or lessons learned from each of the two articles’ research findings.

The following conclusions drawn from the research:

The Case of a Newly Implemented Modern Management Accounting System in a Multinational Manufacturing Company

Formulation of the strategies: the strategies were easy with the new management at system. The company had started it from the beginning; the strategy was formulated with the management level to the law level. The management were simplified with this. All the category of the management was handled with the proper account system or with the help of internal control. The findings were that the managers were involve and as well as the employees were participating in the process of, acing strategies. It were motivating their confidence as well s they were being treated as the part of the organisation’s

New costing method: the new management accounting had started evaluating the new accounting conceits. Which were TQOM, ABC, JIT and all other? The company had started to follow the system from the initial basis. The basis to manage the accounts a weal the to manage the entire organisation with the proper format. The company had made process in the 4 parts. First the need of the techniques was evaluated, after that the company had decide wither this tech issues were applicable or not… next stage was the implementation of the strategy. The strategy was initiated with the lower process and the then it was taken on the grand level. The company then took it into larger level. The next stage of the strategies was taken for the overview. With this process the company had implemented the successful strategy. The company had implemented to the new costing method. With the new costing method, the company had managed inventory system, and the operating cost was bifurcated on the basis of the ABC costing. All the proper way helped in the reporting manner, all the reporting was done on the timely manner as well as in the format. The cost was allocated in the product as they were launching.

Management controls, hierarchy and innovation: a case study of a start-up company

Old methods need innovation: the company had decided with the old traditional method. The later on stage the company had found that the company was not able to manage with the whole with the old method. Hence the company made a new innovation with the new technology, like added the new control methods, the security had been increased. Hence the control was managed in the proper way. The company were concluded the the company can be owned with the old traditional method but can be managed with the new method of the technology.

Easy control of management: the management had been simplified with the new technology method. The boards were managed, all the financial were regulated. The security was improvised, the reporting manner was better. Overall the conclusion was that the new management accounting method can be handled with the old rational method of management.

Conclusions

The conclusion was very simplified with the case studies. In the given cases the company had adopted new technology. The case which is given with the brief was focused on the strategy formulation as well as the adoption of new accounting technique. The company had made strategies with the initial stage as all the part was divided into the 4 subparts to know the effects of the change.

The change in the management accounting from traditional to the modern accounting was must. Company will adopt the original method but innovation was needed in that as per the journal taken for the comparison.

In the case which was written by thru Brat and the team they had adopted the new accounting method which had explained above. And also they had made changes in the strategy formulation. This innovation will help the company to adopt the technology very easily.

References

Luthans, F., & Doh, J. P. (2012). International management: Culture, strategy, and behavior. New York: McGraw-Hill.

Myrelid, A., & Olhager, J. (2015). Applying modern accounting techniques in complex manufacturing. Industrial Management & Data Systems, 115(3), 402-418.

Taylor, D., King, R., & Smith, D. (2019). Management controls, heterarchy and innovation: a case study of a start-up company. Accounting, Auditing & Accountability Journal.

Watts, D., Yapa, P. W., & Dellaportas, S. (2014). The case of a newly implemented modern management accounting system in a multinational manufacturing company. Australasian Accounting, Business and Finance Journal, 8(2), 121-137.

Part A: Contracts Law Question

Issue

The case belongs to the case of contract law. The question asks about the concept of mere representation. In the give problem, a man 5 years ago introduced him as the Trevor Hunt though it was his false identity, but he initially represents him as the owner (Eldridge, 2019). Co incidentally the local newspaper had Lalo’s new about him, so the assesse, who is the owner of museum, get confused. The defendant had sales an antique of $200000 to Mr Lace Lincoln by saying that hr crockery and antiques belong to the antiques of Gavotte (Nottage, 2016). Now the issue had raised can Mr. Lace file sue against the Tremor or can claim compensation against the fraud or not

Rule

Thaw whole study move around the mere representation. Mere representation means a person intentionally represent himself be the personality who he is not. The intention of the person is not true or of the fraud conscious (Cantatore, & Johnston, 2016). Mere representation is not the term of the contract. It is just the intention of doing the contract.

As per the section 18 of the Australia Law the mere representation gives the intention to the contract party to do the contract (Sims, 2012). The party who had face, bosses can claim damages under the common law r the statue law of Australia. The section 18 also defines the contract fraud in the concepts of trade.

The section 2 of the competition and consumer act gives the power of the remedies to the deceptive party for the purpose of the trade.

There must be oral contract between both the parties
The defaulter party had belief on the three part was in the true terms
Bothe parties should be in the capacity of doing contract.
No other terms of the contract be in the contradict to the contract
The party who had face damages should have done proper research before making contract

Australian Contract Law deal with legal imposition of promises which have been made a part of bargain, so both parties can freely have entered into establishment of a legal relationship is called a contract. Contract has included all necessary information which has also involved breaches and remedies for shareholders of that contract.

Application

AS per the section 18 of ghee Australian Law which deals with the mere representation. The party Mr Trevor can be found to be guilty if the following condition boos fulfilled:

he intentionally represents him as the Mr Troy as the owner of the museum in the Gavotte,
the intention of Tremor was not known to the Mr. Lace
HE had examined the goods to be the antique before making contract
The reason of the trust was in the good faith
The price of the contract is the last and negotiable price
Mr. Lace have the proof of the contract with the Trey or

The contract between the Mr Tremor and Lace Lincoln can be sue in the court on the following basis

The time when Mr. Lace comes to know that the antiques are not real and by fraud they are sold to him

The point when the intention of Mr. Trevor was found to be deceptive nature

When the news of arrest of Mr. Tremor comes to know by Mr. Lace (Spagnolo, 2013).

The earlier among the above 3 can be the time when Mr. Lace can file the case against the Mr. Trevor (Riley, 2012).

Conclusion

The contract was done between thaw MR Trevor and Mr. Lace, the price of the contract was $20000, and the abject was the antiques from the museum of Gavotte.

Tremor with the fake personality introduced himself with MR Lace and with the intention of fraud entered the contract with MR. Lace. The contract was done by the Mr Lace on the basis of the mere representation and he was not aware of the intention of fraud by Mr. Tremor. After the contract Mr. Tremor comes to know that the antiques are not real and they are obtained by the fraud. So now the <R. Lace can file the against at the earlier of the point, when he comes o know the intention of MR. Trevone, or when he found that the crockery is not an ancient or when the news of fraud by the MR. Trevor published in the television.

Mr. Lace can sue Mr. Trevor if the all the constiotpon of the section 18 of the Australian law had fulfilled and can claim the compensation against the fraud.

Part B: Corporations Law question

Issue

The Kellie and her friends cumulatively decide that they should open the company. As they were required the capital of 40000. All the friends suggested that they should contribute the equal amount. With the intention of the company the friends had filed an application with the registrar for the incorporation of the company (Marshall, & Ramsay, 2012). But later on all the friends of the Kellie had moved back and did not contribute the amount. With the time period, the friends had order some of the raw material for the import of the business. Now the issue had been arising either the Kellie or the friends can liable for the contract made on the behalf of the company or either company can be sued for the agreement done by the exporters (Williams, 2012).

Rule

The given case study will accumulate the section of the Corporation Act 2001, of the Australia. As per the section 128, of the said act certain some assumptions regarding the corporation of the company. The basic assumption proves that the company can found to be guilty after getting the incorporation (Matthew, 2015). It also states that company will not be bound for any contract done before incorporation/

The section 131 of the corporation act deals with the contract done before incorporation of the company:

If the person, who are having the intention of incorporation of company, are entered in the contract s with any third party, then the company may be bound to contract but for that the application of the incorporation had been filed to the registrar (Graham, & Unit, 2012).
If the breach is done between the time period of the application and the incorporation, company will be liable only after the date of incorporation. If the company fails to incorporate, then the founders of the company will found to be guilty
And after the incorporation, the existing contract should be revised or the rectified. If the company or the other party fails to rectify the contract after prescribed time by the registrar, then company will not be bound for such contract done before obtaining certificate of incorporation (Brown, & OBE, 2012).
If the company had not found guilty then the founder or director after incorporation will be found guilty for the breach the terms and condition of the contract.

The section 136 of the corporation act deals with the condition of the constitution o the company. Company will found to be constituted only of the following conditions are found to be complete:

The persons who are founder of the company give their consent in writing with the application of the company incorporation to the registrar/

After the application, the promoters had passed special resolution and had signed the resolution. The person who had given consent should be present at the time of the passing resolution for the constitution of the company

The directors are found to be guilty in any case or the breach of eh condition of the contract. Only if they are found to be act done in the intention of the feud or misrepresentation. If the intentions are lawful and without being fraud. The company will found to be guilty only after abstaining the letter of the incorporation and the passing the special revolution.

Australian Corporation Law has been established in terms of Australian Securities and Investments Commission (ASIC). Each country has their own legislature and as per Australia it will closely developed in English Law. Corporation Law is based on costs, which has been built between States and companies, Government and policies of each state have been developed in separate lines.

Application

In the given case the act of the corporation act, 2001 will be applied there are certain condition s which are found to be studied with the above sections

Kellie had done the contract with the parties for the raw material, I the capacity of the company prior to the obtaining letter of the incorporation. So in the given situation a theory of the assumption will be valid that the contract will be ratify after the obtaining the certificate. Till the Date Kellie had the port of entering the contract.

All the friends of the Kellie had denied to contribute for the capital of the company due to the reason one or other. But all the friends had applied for the registrar and given the consent to the registrar for obtaining the certificate. So it can be said that if there is any breach all of the friends will be liable for the contract until the certificate regrets the letter of the incorporation

The Kellie after knowing the facts that no friends are contributing capital money, did not cancel the application to the registrar, and had the tension of company incorporation (Brown, & Dent, 2017).

After having certificate of the incorporation, the Kellie can be found to be rectify all the contract in terms of the condition if Kellie fails to rectify the contract she will be personally liable for the breach, or if the rectification had done the company will be found liable for all the breach of the contract.

Conclusion

In the given case study Kellie and friends are found to be liable for the breach of the condition before the contract done in the capacity of the contact until the company found the certificate of the incorporation

After having the letter of the incorporation the Kellie who had initally left as the director are found to be guilty for all the acts done after incorporation

After the incorporation the company have to rectify the contact done prior the certificate or after filing the application, if contracts are not rectified they are found to be void, neither company nor director of the companies are liable for ant breach of the condition

The friends and Kellie all had filed an application before the registrar for the company incorporation certificate, and later the friends of the Kellie had denied so the Kellie can claim the friends in the basis of the breach of contract and not contributing the money to the incorporation

Even the Kellie can sue all of them for not entering the contract.

References

Brown, M., & Dent, C. (2017). Privacy concerns over employer access to employee social media. Monash UL Rev., 43, 796.

Brown, P., & OBE, B. A. (2012). Australian influence in the South Pacific. Australian Defence Force Journal, 189(27), 66-78.

Cantatore, F., & Johnston, J. (2016). Moral rights: Exploring the myths, meanings and misunderstandings in Australian copyright law. Deakin L. Rev., 21, 71.

Eldridge, J. A. (2019). Codifying Contract Law in Australia: Issues and Obstacles (Doctoral dissertation).

Graham, O., & Unit, P. (2012). Australian Trade Unions: An Alternate Regulatory Approach.

Marshall, S., & Ramsay, I. (2012). Stakeholders and directors’ duties: Law, theory and evidence. UNSWLJ, 35, 291.

Matthew, A. (2015). The conundrum of phoenix activity: Is further reform necessary?. Insolvency Law Journal, 23, 116-135.

Nott age, L. (2016). The Government’s Proposed Review of Australia’s Contract Law: An Interim Positive Response. In Codifying Contract Law (pp. 131-164). Routledge.

Riley, J. (2012). Siblings but Not Twins: Making Sense of Mutual Trust and Good Faith in Employment Contracts. Melb. UL Rev., 36, 521.

Sims, A. (2012). Unfair contract terms: A new dawn in Australia and New Zealand. Monash UL Rev., 39, 739.

Spagnolo, L. (2013). Law Wars: Australian Contract Law Reform vs. CISG vs. CESL. Vill. L. Rev., 58, 623.

Williams, R. (2012). Enlightened shareholder value in UK company law. UNSWLJ, 35, 360.

Executive summary

The assignment is based on the multinational entity. The multinational entity chosen for this assignment is the LOREAL. The assignment is reported according to the company LOREAL. This assignment report includes the various strategies used by the LOREAL to enter the foreign strategy and to develop in the foreign countries. It also includes the various competitive dynamics and problems faced in the various market conditions. The details of the organisation structure are also depicted in this report. The knowledge and the innovation management techniques used by the company is also explained in the detail in this assignment report. Therefore, it can be said that the report includes the details of the LOREAL that is the multinational entity and the strategies applied by the company to foster and develop in the market.

Introduction

The assignment is based on the multinational entity and the MNE chosen for this assignment is LOREAL. It is the French personal care company. the headquarters of this company is in Clichy, housed –Seine and the registered office is in Paris. It is the largest company in the world that deals in cosmetic. The company focuses on the various activities such as the hair colour, skin care, sun protection, make up and perfumes etc. the LOREAL has the various brands that includes the 39 beauty brands including major staples like Maybelline, Urban decay, Garnier and the Body shop. The advertising slogan followed by b the company to motivate is the “because we’re worth it”. The company also contribute towards the sustainability plan. The aim of the company is to achieve the sustainability plan till 2020 that includes that the products of the company will have the environment or social benefits. The LOREAL also has the interest in the various other activities such as health, finance, chemicals advertising and insurance. The products made in the company are related to both male and female, so it can be said that the company follows the policy of the gender equity in its functioning.

Foreign entry strategy

The products of cosmetics in world famous are L’Oréal for male and female uses in every category of ages. The material is demanding on international house of business. The demand for L’Oréal is productive in business. It has variety of human fragrance and body care for human. It is promoted as great product of ingredients of nature (Marcott, et. al., 2013). The world best strategy is now day is online business and home delivery. The L’Oréal products are categorised in hair spa, body care, shampoos, oil free cosmetics and creams for face. It also offers face wash to hand wash, hair wash and scrubs wide ranges. The group of female is target in this business with smoothness and fragrance of products. The market of loreal products is great in cosmetic strategy to hire models and actresses for promotional advertisement and posters. The products of beauty are recommended to their environmental conditions like climate of clod and hot. The cold climate products are regularly buying in at foreign country (SORIN, 2018).

The hot climate and warm weathers are used sunscreen cream, tanning removing and hair wash. Oil free faces wash for wide range of natural gradients in products. It is recommended as fruits and vegetable flavours by their natural properties. The foreign strategy of products is popular by marketing, online business and home delivery. It is very easy to order by software applications and online portal of loreal. The products have facilities of offers, cosmetic test and model reviews as icon publicity. The publicity of the products is regular on internet, online media groups, advertisement as blinking media and social media groups. The foreign strategy for products is comfortable for supply and quality of products. It is recommended as brand for cosmetic industry. It maintains broad range of Variety of product in gender equity (Marcott, et. al., 2013).

Competitive dynamics

Competitive like other cosmetic brands Maybelline, Urban decay and Garnier are also available in wide range of products. The competitive is launch new products with similarities like fruit face wash, shampoos in dandruff free concept, aloe Vera extract. But L’Oréal is maintaining its brand fragrances in products. It is famous for fragrances in brands of cosmetics. The competitive companies are successful or failure than in world rating but the status of company is maintaining by the company L’Oréal. The products are available in variety with quality of raw material used. The high quality of product and high performance of consumer are in products. It is best centralized product in all over the world (Arora, et. al., 2012).

There are some points of achievable for L’Oréal success-

Cultural shared on every level of workers in company
High quality product delivery
High quality raw material supply
High quality and attractive packaging of products
Great fragrances maintain
Quality management of products
Consumers satisfaction for product using
Online market involved with great efforts
Advantages or disadvantages are identified

The product of cosmetics is variety for adaptable for all types of climates and skin type. The work profile and staff selection are professional and innovative for the world cosmetics production. The loreal is famous for working in team work and new strategy. The formation of festive offers and discounted on packages are initiatives for customer number increase. The customers are involved and offers are attracted for gifts. The L’Oréal is online marketing in world digital market. The development of market of company is maintained by marketing research and offers strategy. The performance is controlled in quality check with hundred percent results. The satisfied customers are on cost and product quality increased in number. It is worldwide business (Benon & Jansson, 2016).

Organisation structure

The organisation structure is a system that defines how the activities are directed in the company in order to achieve the goals of the organisation (Yousaf et. al., 2012). The organisation structure includes the rules and the responsibilities given to the employees in the company. The organisational structure determines the flows of information between the different levels of the company. The organisational structure of the LOREAL includes the:

Division of labour

The loreal divides the labour according to the work performed so that it can ensure the development. The labour of the LOREAL is divided into the research and innovation centres, the unique portfolio of the brands is organised by the company according to the distribution and the geographical area and an industrial production.

Departmentalization

The departments in the LOREAL are divided according to the products and the geographical area.

Product departmentalization

The LOREAL groups its work by the product line. LOREAL includes the various international brands that consist of the various cosmetics such as hair care, colouring, and skin care, make up and different perfumes (Fisher et. al., 2012). The departments in the company are divided according to the products they deal in; different cosmetics products have the different departments. These brands in the company are managed in the groups that include the various experts in the channels of the distribution. The product organization is the major strength in the company.

Geographical departmentalization

The LOREAL has developed this field to the large extent (Aghion et. al., 2013). The board committee formed in the company includes the members from the different geographical locations or zones. The company has made addition in the field of innovation and research that is spreader in the different countries with the large number of experts.

Customer departmentalization

One of the aims of the LOREAL is to make the products for all the diverse customers that are in the world. The products produced by the company are dependent on the lifestyle of the people.

In the early stage the LOREAL was characterized by the organic structure. After the expansion of the LOREAL they started to be highly specialised, the departmentalization was rigid, span of control was narrow and high formalization (Erneker & Glatte, 2012). The important decision made in the company is based on the centralised activity. All the centralized decision made in the company is according to the expert’s opinion and the decisions.

(Source: slideshare.net)

Knowledge Management

The company as cosmetic products manufacturing is required knowledge of medical, laboratory, face cosmetic and skin types. There are staffs as experts in skin and doctors for quality check in laboratory. The laboratory is required approval from quality management and testing. The knowledge is approved by standard methods and operation procedures. The Cosmetic products are made by natural products and collection of flowers and herbs parts from selected forests. The Products are specified in natural process of production. The analysis is tested sequences on face types and number of people. The test is done in correct way than thesis of every product is completed and presented. So, there is also research work about cosmetic production and their fragrance (SORIN, 2018). The research of herbs and flora are invited in innovations and ideas generation in company. The new concept is invited in company with logical reviews of productions and work as remedies. There is collection of natural remedies that is used in cosmetics for production and quality. The information’s of product wise are maintained on the product packaging and ingredients in quantity of percentages. The products are passed by quality check and management of packaging. It is resultant of various testing and hundred percent proofs from side effects (Arora, et. al., 2012).

The knowledge of old literatures and information’s of ancient cosmetics are collected. The natural herbs and beauty products are used as ingredients of cosmetic products. It is also used in feedback information by customers. The ancient products are made information source for product and their promotions. The promotional methods are liable about natural process. It is more use for people attractions. The public responses for other products are collected and management of data base for new innovation of product. The knowledge management of products is invited as collection of information; prepare data base and analysis of data. The data is research in way of their usefulness and stored (Liberda & Zajkowska, 2017).

Innovation

The innovation in company of production is required for best output of company. The innovation is generated by new ideas and efforts on research. The innovation is launch new product. It is a promotional activity of company. The company is innovative about product and launch new product in market. It is according to guideline and their process in intellectual properties and patent. The innovation is created in company by expert staff and team member’s collaborations. The innovation is invited by the feedback analysis of customers. The feedback is collected from the customers of other companies and analysed the problems around it. Than the solution may come from team discussion and ancient knowledge of books. The herbs and flower knowledge and their quality are used for cosmetic products. The product is analysed by various testing process. Sometime innovation idea process is created new thing in production (Liberda & Zajkowska, 2017). It is also useful for process in market. The ideas are invited in team meeting and staff suggestions because every idea has importance in way of company growth. It is innovation management as achievement of company. It is also developed company staff skills and knowledge of company. It is more informative to derive new production. It can be based on the climatic conditions and environmental protections for skin and faces clearing wash. It is similar in gender by some different formula and more production. It is good for team development and management of company. It is promotional activity for company and remedies invented for public. It is become more trustable in products. The innovation is cost effective by use natural products and ancient formulas. It is gained more publicity with trust in products (Benon & Jansson, 2016).

Conclusion

It can be concluded that the assignment includes the details of the LOREAL and the strategy used by the company to develop in the market. Through this assignment it can be said that the organisation structure followed by the company is product, customers and the geographic departmentalization. The company is using the various innovative strategies to enter the foreign market and prosper in it. It also includes the various competitive dynamics and problems faced in the various market conditions. The company follows the gender equity as the products of the company are related to both males and the females.

References

Aghion, P., Van Reenen, J. and Zingales, L., 2013. Innovation and institutional ownership. American economic review, 103(1), pp.277-304.
Arora, N., Agarwal, S. and Murthy, R.S.R., 2012. Latest technology advances in cosmaceuticals. International Journal of Pharmaceutical Sciences and Drug Research, 4(3), pp.168-182.
Benon, H. and Jansson, C., 2016. Competing for Talents: How a company can work with employer branding and talent management to attract talents.
Erneker, S. and Glatte, T., 2012. Sustainability policies for an industrial corporation’s real estate management: A case study. Corporate Real Estate Journal, 2(2), pp.94-104.
Fisher, D.R., Campbell, L.K. and Svendsen, E.S., 2012. The organisational structure of urban environmental stewardship. Environmental Politics, 21(1), pp.26-48.
Liberda, B. and Zajkowska, O., 2017. Innovation and Entrepreneurship Policies and Gender Equity. International Journal of Contemporary Management, (Number 16 (1)), pp.37-59.
Marcott, C., Lo, M., Kjoller, K., Domanov, Y., Balooch, G. and Luengo, G.S., 2013. Nanoscale infrared (IR) spectroscopy and imaging of structural lipids in human stratum corneum using an atomic force microscope to directly detect absorbed light from a tunable IR laser source. Experimental dermatology, 22(6), pp.419-421.
SORIN-CIPRIAN, T.E.I.U.Ş.A.N., 2018. DIFFERENCE BETWEEN MANAGEMENT CONTROLLER AND ASSISTANT MANAGER. Annals of ‘Constantin Brancusi ‘University of Targu-Jiu. Economy Series, (4).
Yousaf, U., Zulfiqar, R., Aslam, M. and Altaf, M., 2012. STUDYING BRAND LOYALTY IN THE COSMETICS INDUSTRY. LogForum, 8(4).

Brand Positioning and Brand Equity

Introduction

Brand positioning means the use of marketing technique to identify and differ the products in the various other products. It builds a strong brand and helps the company to reach targeted customers. Brand equity means the position of the company in the marketplace where it is working. It builds in the form of customer loyalty and brand visibility. A brand identifies by the name, logo and the image of that identifies the products that help the company to reach the customers. There are many ways to measure the brand and manage brand equity. The brand also negative and positive influence.

Products of Coles supermarkets

Coles supermarkets is an Australian public retail company that provides the customer with all the types of products which they use in their daily needs. Coles has over 100,000 employees and covers 80% of the Australian market. The company offers various products like

Dairy products: Coles offers a huge variety of dairy products from milk to the cheese. This is intake in the consumer as the daily need for its developing of the bones.

Baby products: Coles offers a wide range of baby products which includes their soaps, shampoo, wipes, and nappies. These are properly tested and recommended by the other authorities that they are god for the skin.

Fresh fruit and vegetables: It buys the fruits and vegetables from the local producer that are among 350 growers of Australia. In this area, the company should achieve great success.

Meat: The fresh beef, pork, lamb and other varieties are Australian grown. The grown vegetables help in meeting the taste requirements of the consumer.

Liquor: At the Coles, the company is providing a wide range of variety of liquor for the consumer. The different varieties where it can be bought are the liquor land, vintage sellers, first-class liquor and first choice liquor market (Our products, 2019).

Competitive Information

Coles is one of the leading brands in the lifestyle and retail sector. The Coles is the brand that ranks 5th in the market position of the retail sector. It has the main competition with the Woolworth Company that ranks 4th position. The brand value changes in Coles is higher than that of Woolworth. The brand value change is 30.9% in Coles and 23.1% in Woolworth. The products of Coles are also gaining more recognition in the market. With the help of brand recognizing they almost capture 80% of the Australian market. The various other competitors are Amazon, Target, Walgreens and many others. The products that compete for the most are that of daily use like milk products, meat, fruits, and vegetables.

Environmental Scanning

The scanning of goods evolves that the products are environmentally friendly and the milk and especially the baby products are medically tested. The goods are alcohol-free, fragrance-free, ph balanced and dermatologically tested. The milk products are free from any adulterer items that cause harm to the body of the consumer. The baby products are safe for the sensitive skin of the babies. The packaging used is also to recycle items that can be used more than once after the treatment (Brand Finance, 2019).

Demand

With the increase in the brand position, the demand of the products gets increased with the increase in customer loyalty towards the company. The prices strategy used by the company is ‘Down Down’ it means the prices for the selected goods are lower to increase their performance in the market. This strategy has increased the company sales and production has also been increased but with the help of minimum input. The milk products supplied by the Coles was increasing over the period of time. In 2010 and 2012 the product recorded the highest sales in the market around 2500 million liters. The strategy is perfectly fit for all the consumers because lower price encourages the consumer to purchase more from the market without any hesitation. The selling of goods has been increased by 50 to 200% and the selling of milk products increases even more than the other products. The company also get a higher profit and captures a large market area of Australia using this strategy. There are many other improvements like an increase in the productivity of the assets other than the increase in demand for the product (Kamarajugadda Sandeep, 2012).

Source: (Kamarajugadda Sandeep, 2012)

Market Segmentation

Market segmentation refers to segmenting the market according to the needs of the consumer and the amount of services that are given tailored individually. It requires the separate of the product or different marketing structure. The segmentation was done on the basis of three criteria

Product forms: The divide should be done on the basis of the products made by the company. The milk products and it offers it for the two varieties that is for the children and the adults. The baby products are tested and especially made for them only.
Usage situations: The Coles divide the products according to the use that is for the daily use needs and for the luxurious needs. The daily use products has different prices according to the pricing strategy implemented by the organization.

For the successful positioning in the market it is not necessary to develop something new but it is necessary to manipulate the already applying strategies in the market. Positioning strategies can be done against the competitor and the customer who are buying the product of the company. Coles has achieved the brand value growth among all the retailers in the market (Haagenson, et. Al., 2013).

Conclusions

From the above analysis it is concluded that the brand positioning is the main factor that affects the position of the company in the given market area. The brand value can be the enterprise value, business value and the contribution by the brand. The strategies can be put to use to achieve the brand value of the business. In this report there is the detailed analysis of the company Coles and its different market segmentation. The Coles make the product and the pricing strategies that helps in increasing the demand of the product in the market.

References

Brand Finance, 2019. Annual report on the most valuable and strongest Australian brands. [Online]. Brand Finance. Available at: https://brandfinance.com/images/upload/australia_100_locked.pdf. [Accessed at: 21 August 2019]

Haagenson, E., Rajagopalan, B., Summers, R.S. and Roberson, J.A., 2013. Projecting demand extremes under climate change using extreme value analysis. Journal‐American Water Works Association, 105(2), pp.E40-E50.

Kamarajugadda Sandeep, 2012. Analysis of the grocery industry. [Online]. Kamarajugadda Sandeep. Available at: https://www.academia.edu/4615254/Analysis_of_the_grocery_industry_Coles_Supermarkets. [Accessed at: 21 August 2019]

Market segmentation, 2019. Welcome to Coles. [Online]. Market segmentation. Available at: https://www.dlsweb.rmit.edu.au/bus/mk100/html/lect_6.html. [Accessed at: 21 August 2019]

Our products, 2019. Coles supermarkets, Australia. [Online]. Our products. Available at: https://www.coles.com.au/our-range/our-products/baby. [Accessed at: 21 August 2019]

Introduction

In this assignment one topic is chosen and discussion is done on it. The topic chosen for this assignment is ‘outsourcing’. Outsourcing is the form of activity in which the business transfers its activity to the third party to reduce their cost and lessen their burden. Nowadays outsourcing has gain importance in the competitive world. This topic has been chosen to get the detail understanding of outsourcing that can benefit the company and help in their growth and development.

Assessment 1

Define and discuss advantage and disadvantages of outsourcing and the role it plays in a global context. Practical examples are essential.

The term outsourcing derived from the phrase outside resourcing. It is an agreement between the companies in which one company hires the another company for the work that is too be done internally. Outsourcing includes both foreign and domestic contracts. It is the practice of getting some job function done outside the company that the employees cannot handle. Outsourcing can be done either to the company or to individuals (Kim et. al., 2013). Human resources outsourcing has become the major trends in the world nowadays. Most of the companies whether it is small or large are engaging in outsourcing so that it can reduce the overhead cost of the company.

One way to outsource is to hire independent contractors. For example, the company can hire the independent accountants who comes in the company only once in a month to collect all the documents. The process of hiring the independent contractors are much flexible and it incurs less cost (Rivard & Aubert,2015). The company should make sure the independent person he has hire is able to perform the job.

Company outsource their activity to reduce the cost and improve efficiency. The third party can perform the activity of the business either offsite or onsite the business (Wuyts et. al., 2015). There are various types of outsourcing that can be followed by the companies such as business process outsourcing, knowledge process outsourcing, out tasking and selective outsourcing.

Examples of outsourcing companies

There are various companies in Australia that are outsourcing.

Solectric Australia

It is an innovative company in Australia that provides solar system installation systems to various industries.

Securitas private health

The company provides financial security to their clients and various financial advice to Australians.

Many more companies are there in Australia such as Optus, Eco move, Eview group etc.

Advantages of outsourcing

There are various advantages of handing over the activity of the business to the third party.

Save cost

The external companies to whom the activity has been transferred has a high degree of specialisation (Tayauova,2012). This help them to work more cost efficiently and therefore they work at low rates and offer discount to the companies.

Improvement of quality

Outsourcing helps in the improvement of the quality of the work. For example, the quality in manufacturing of goods can be achieved only by a good workshop or factory.

Increased efficiency

Outsourcing van help to increase the efficiency in business as management can focus on the core competencies or the work that needs their personal attention.

Skilled persons

New processes and innovation are required in the company. All these processes cannot be handled by the present employees so the company outsource their work. The outsourcing in turn helps to hire skilled persons from outside that can perform their task.

Saving of time

Outsourcing helps to save the time of the employees as they can focus more on the new areas of business.

Fast completion of work

Outsourcing helps the business in getting their work done faster.

Disadvantages of outsourcing

Various disadvantages of outsourcing are.

Dependence

The main disadvantage of outsourcing is that the company gets dependent on the external parties for the work to be done (Iqbal & Dad,2013). For example, if the external party gets into economic difficulties then the company have to bear the consequential cost.

Loss of knowledge

Outsourcing of work can make the loss of knowledge of employees for the task that has been, as the employees will not be working on it because of which they will lose their knowledge for that particular work (Oshri et. al., 2015).

Risk of exposure of data

Outsourcing can sometimes lead to exposure of confidential data of the company to the third party. This mainly happens when the human resources are outsourced, they disclose the confidential data of the company to the third party.

Hidden cost

Outsourcing is generally recognized as the cheaper form, but sometime the outsourcing firm may tell you to sign the length contracts that may incudes various fines and if not ready properly it may lead to payment of unexpected cost.

Moral dilemmas

The major disadvantage of outsourcing is that it may result in loss of the growth and development of the skilled employees in the companies (Dolgui & Proth,2013).

Examples of outsourcing tasks

Outsourcing strategies are used in wide variety of task such as customer service, IT, accounting and marketing departments. Some of the outsourcing strategies are:

Marketing

A company generally outsources the social media channels to an external service provider such as agencies.

Customer services

Many companies transfer the activity of customers services to the third parties and call centres are the best suited example for this.

Role outsourcing plays in global context

Outsourcing has been the part of the business since long. Outsourcing has been considered as an important product in terms of globalization. The main contribution of outsourcing is its ability to connect to the nations that helps in development. Outsourcing has been recognized today as playing the important role in globalization mobility. Since outsourcing helps in giving external service it helps in the increase in the international flow of capital (Ali & Green,2012). The employees of outsourcing firms enjoy international culture exchange as they work in different environment of different nations. Outsourcing has result in the development of better global communication networks that helps in better connections among different countries. Those companies who utilise the service of outsource can increase and speed up their workflows, so it is possible to counter the growing global competition (Lacity & Willcocks,2014).

Best practice methods that can be used for outsourcing

Analyse the current state

The first method is to analyse the state of the task that can help in taking the future course of actions and formulating the outsourcing strategies (Malik et. al., 2012).

Prepare

This involves conducting the meeting with the stakeholders of the company to discuss the outsourcing activity and discuss its benefits, content and next step.

Select a service provider

After discussing and conducting meeting next step is to select the best service provider that can meet the requirements of the business.

Stick to your implementation timeline

This involves agreeing to the timetable when the contract has been formed and the work has been implemented.

Conclusion

The assignment gives the detail understanding of outsourcing. Its advantages and disadvantages of outsourcing has been discussed. The various companies that outsource in Australia has been discussed and various examples has been shared in this assignment.

References

Ali, S., & Green, P. (2012). Effective information technology (IT) governance mechanisms: An IT outsourcing perspective. Information Systems Frontiers, 14(2), 179-193.
Dolgui, A., & Proth, J. M. (2013). Outsourcing: definitions and analysis. International Journal of Production Research, 51(23-24), 6769-6777.
Iqbal, Z., & Dad, A. M. (2013). Outsourcing: A review of trends, winners & losers and future directions. International Journal of Business and Social Science, 4(8).
Kim, Y. J., Lee, J. M., Koo, C., & Nam, K. (2013). The role of governance effectiveness in explaining IT outsourcing performance. International Journal of Information Management, 33(5), 850-860.
Lacity, M., & Willcocks, L. (2014). Business process outsourcing and dynamic innovation. Strategic Outsourcing: An International Journal, 7(1), 66-92.
Malik, A., Sinha, A., & Blumenfeld, S. (2012). Role of quality management capabilities in developing market-based organisational learning capabilities: Case study evidence from four Indian business process outsourcing firms. Industrial Marketing Management, 41(4), 639-648.
Oshri, I., Kotlarsky, J., & Gerbasi, A. (2015). Strategic innovation through outsourcing: the role of relational and contractual governance. The Journal of Strategic Information Systems, 24(3), 203-216.
Rivard, S., & Aubert, B. A. (2015). Information technology outsourcing: An introduction. In Information Technology Outsourcing (pp. 15-34). Routledge.
Tayauova, G. (2012). Advantages and disadvantages of outsourcing: analysis of outsourcing practices of Kazakhstan banks. Procedia-Social and Behavioral Sciences, 41, 188-195.
Wuyts, S., Rindfleisch, A., & Citrin, A. (2015). Outsourcing customer support: The role of provider customer focus. Journal of Operations Management, 35, 40-55.

Abstract

The assignment determines the detail about the adoption of the IFRS in the two countries. The two countries that are taken for the assignment are Australia and Pakistan. The assignment includes the various benefits and challenges faced by the two countries in the adoption of the IFRS principles. The details of the adoption of IFRS in the two countries are depicted through various examples related to accounting standards are shown in the assignment. The assignments give the detail about the conceptual framework of the financial reporting system.

Introduction

The assignment is based on the adoption of the IFRS in the two countries. The whole assignment gives the details about the IFRS. IFRS are known as international financial reporting standard used by the international accounting standard board (IASB). IASB is an independent not for profit organization work to harmonize all the accounting transaction so that all the common people were understand and compare the language with the other companies and check the deficiency occur on that comparison, it increases the transparency in financial information. The goal of IRFS is to provide help to the public companies in disclosing their financial statement. The IFRS includes the common language that are used by the business for the presentation of the financial statements. It also helps in the easily understanding of the various financial aspects.

Relevance of the conceptual framework of the financial reporting framework

The conceptual framework is the system, ideas and various objectives that results in the creation or formation of various set of standards. The conceptual framework for the financial reporting is an important aspect because it provides the framework for the settlement of various accounting standards, helps in the resolving the disputes generating in the accounting and it provides various fundamental principles that are not repeated in the accounting standards. Conceptual framework for financial reporting was published by the international accounting standard board (IASB) for review only. The published statement was modified after receiving the comments and before issued in final form.

All the comments received will be in public record and posted on the website.

The IASB issued the revised conceptual framework in march 2018.

The ideas and the rules given through the conceptual framework sets the nature and functions of the financial accounting and the financial statements. With the proper framework in the financial accounting the Financial Accounting Standard Board are able to issue the standards that will be helpful in the financial statements (Rashid et. al., 2012). The framework also makes the presentation of the financial statements easily understandable. It builds the confidence among the users and make it easy for the companies so that they can compare the financial statement and make decision on the basis of it.

The another purpose of the conceptual framework is to help the Indian Accounting Standard Board in development and the revision of the IFRS principles that helps in the formation of the various accounting policies that are not included or covered in the accounting standards (Rehman & Shahzad, 2014). If the sometimes any accounting standard is not available for any situation at that point of time these frameworks can be used by the management to make judgements according to the accounting policies that are important and provides important information.

2. Comparison of the adoption of IFRS in the two countries

The two countries that have been selected for the comparison of the adoption of the IFRS are Australia and Pakistan. The detail comparison of both the countries are shown below.

Reason for the national accounting body adopting IFRS

The IFRS was adopted in the year 2005. It came into effect on the I January 2005. In the year 2015 the Australian accounting standard boards reviewed and extended the adoption of the IFRS to the profit and non-profit organisations of the Australia. The country adopted the IFRS because it results in the smooth functioning of the transaction of the various sectors (Odia & Ogiedu,2013). The adoption of IFRS helped the users and the enablers to move between the sectors and different countries with considerable skills and knowledge. The adoption of this system also results in the cost saving in preparation of the financial accounts. In 2005 the Australian companies followed a number of years’ policy for international accounting standard. Australia was the first major economy to adopt IFRS. The uses of IFRS provides the number of potential benefits to the Australian companies.

the specific focus on four lines of enquiry: –

1 – impact on quality of Australian financial reporting

2 – impact on comparability in Australian financial reporting

3 – benefits for the investors and analysts on publicly listed Australian companies

4- survey for senior personnel in capture their perception

The adoption of the system of IFRS was done by the Institute of the chartered accountants of Pakistan(ICAP). The institute of the chartered accountants of Pakistan plays an important role in the implementation of the IFRS in the country. It was adopted in the country so that the comparison of the financial statements can be done easily. In Pakistan the ICAP laid down the strategy for the adoption of the principles of IFRS on 31 December, 2007 (Christensen et. al., 2013). This principle at that time came into force in all the public companies of the country. The ICAP adopted the strict adoption and monitoring strategy so that they can review the implementation of IFRS on the daily basis. This strict strategy was adopted in Pakistan so that the institute can detect the problems occurring in the implementation of the principles.

Transitional issues faced by the two countries in adoption of IFRS

The various transitional issues faced by the two countries are:

Australia

In Australia the accounting professional faced problem in the valuation of the asset (Yip & Young, 2012). The IFRS required to bring the transparency in all the book value and the fair value of the assets that created problem for the accountants to calculate the fair value for the large scaled companies as there are huge number of assets in such companies.

The convergence cost was high in Australia because of the training and education of the professionals and as it was required in all the companies large number of cost was incurred in the training of the people that resulted in the increase of the convergence cost.

Pakistan

The transitional issues were faced in Pakistan because of the limited time given for the adoption of the IFRS approaches. The Pakistan faced the hug number of changes in the preparation of the financial statements and the ratios and the cost and the benefits of the transitions (Kang & Gray,2013). The IFRS created problem in the identification of the cost of the capital of various organisations. Various other transition issues faced in the Pakistan were in the treatment of the land leases, estimation method of the useful life of various assets and recognition of the gains and losses of the large companies.

Challenges faced by the reporting entities in the adoption of the IFRS.

Challenges faced by the Pakistan in adoption of the IFRS:

The first challenge faced by the Pakistan in implementation of the principles of IFRS was because of the International Accounting Standards 39. The execution of this accounting standard was not being able to done properly because of the lack of availability of the information and the quality of the data across the industries (Cotter et. al., 2012). The methods of forecasting the cash flow also not specified that resulted in the different ways adopted by the companies for the comparison of the financial data.

IFRIC (international financial reporting issue committee) 4 implementation was delayed because of the various reasons such as calculations of discount rates and lease payments, evaluation of the discounted rates of the cash flow and various other legal constraints.

There is various contradiction in the regulation of IFRS and the company’s ordinance 1984. For example, it can be seen in the treatment of the revaluation of the surplus of the financial statements and the time period of the preparation of the consolidated financial statements.

The international accounting standards 1, continuously entails that the terminologies and the content of the financial statements should be updated under the IFRS that made confusion in the adoption of the principles.

Challenges faced by the Australia in the adoption of the IFRS

The adoption of the principles of the principles of the IFRS was challenging for the Australia because it includes various difficulties in ascertaining the importance, time and the reasons for the use of the standards (Daske et. al., 2013). The use of standards was not clear that lead into the confusion in the preparation of the financial statements. The professional also lack the technical knowledge that is required in adoption of the IFRS tools. The main challenged faced by the Australia in the adoption of the IFRS rule was because of the lack of training and the education of the people (Ahmed et. al., 2013). The people of Australia had the prior knowledge of the other system of accounting and the adoption of the new system was becoming the crucial part for the entities and the auditors. The financial results preparation under the IFRS was also different as the IFRs take into consideration the domestic standards and the business contracts needs to be valued exactly under the IFRS that was becoming the crucial activity for the people of Australia in adoption of the new system in comparison to the older one. IFRS requires the integration of the one or more principles of the accounting approaches that needed the professional judgements by the organisation as well as the interested parties that creates the hindrance in the adoption.

Benefits of adopting IFRS in the entities of the two countries

Benefits in Pakistan

The adoption of the IFRS in Pakistan gave the huge benefits to the country. The adoption of these principles helped in the comparison of the financial statements. It also the helps in the perfect allocation of the capital of the company. many researchers have found that the importance to IFRS has resulted in the increase of the economic status of the various firms in the Pakistan (Horton et. al., 2013). The system helps in the preparation of the reliable financial statements that made the investors more secured about the investment made by them. the country got the various benefits such as the comparative attributes, helpful in resource allocation and improvement in the preparation of the financial statements. The three things are fully fulfilled by the Pakistan with the adoption of the rules of the IFRS such as implementation, regulatory framework and the quality assurance.

Benefits in Australia

The Australia gain the huge benefit from the adoption of the IFRS principles in the financial accounting system. The use of the IFRS resulted in the smother functioning of the preparation of the financial statements, reduction in the cost of the preparation of the financial statements. The various reports say that the quality and the comparability features of the financial accounting statements of the Australia has improved to the large extent. The use of this system had the positive impact on the economy of Australia. It is the country of capital importer and the adoption of the IFRS has resulted in gaining the faith of the people on the preparation of the financial statement of the companies.

Similarities and differences in the adoption of the IFRS

Similarities

The various similarities found in the adoption of the IFRS in the two countries that is, Australia and Pakistan is that the adoption of this system led to increase the economic status of both the countries (Cheng et. al., 2014). The adoption of the financial accounting system had the straightforward impact on the increase in improvement of the economic status of both the countries. At the earlier both the countries faced problem in the adoption of the financial system because of the old financial system adopted in the country that led to confusion in entities and the professionals. Both the countries have the strict rule and regulation for the adoption of the accounting standards in the preparation of the financial statements.

Differences

The various difference found in the adoption of the IFRS in Pakistan and Australia are the adoption in Australia was mainly focused by the Australian accounting standard boards and the adoption in Pakistan was focused by the Institute of the chartered accountants of the Pakistan (Abeysekera, 2013). The Pakistan differs from the Australia because of the adoption of the accounting standards, Pakistan has not adopted all the standards of the accounting in comparison to Australia. The difficulties faced by the Australia was much more less than the difficulties faced by the Pakistan. The main reason for the difference in the adoption of the accounting standards in both the countries was because of the difference in the social, economic, cultural and the legal differences prevailing in the countries.

The various other differences in the adoption of both the countries are;

IFRS 1 was not adopted by the Pakistan as all the principles was not adopted by the Pakistan.

IFRS 14 and 17 are still not adopted by the Pakistan.

3. Adoption of IFRS was successful or not

The adoption of the IFRS is successful for both the countries that can be seen through the various benefits they have gain and the improvement occurred in the process of both the countries. Through adoption of this system investors got secured as they can rely on the financial statements (Elias, 2012). It can be said that this system is important for all the countries so that the business language is common in all the countries that will help the parties in understanding the accounting data easily. The adoption of the IFRS in Pakistan gave the huge benefits to the country. The adoption of these principles helped in the comparison of the financial statements. It also the helps in the perfect allocation of the capital of the company (Baig & Khan,2016). many researchers have found that the importance to IFRS has resulted in the increase of the economic status of the various firms in the Pakistan. The system helps in the preparation of the reliable financial statements that made the investors more secured about the investment made by them. the country got the various benefits such as the comparative attributes, helpful in resource allocation and improvement in the preparation of the financial statements. The Australia gain the huge benefit from the adoption of the IFRS principles in the financial accounting system. The use of the IFRS resulted in the smother functioning of the preparation of the financial statements, reduction in the cost of the preparation of the financial statements. The various reports say that the quality and the comparability features of the financial accounting statements of the Australia has improved to the large extent. The use of this system had the positive impact on the economy of Australia. Thus, through it can be said that the adoption of the IFRS was beneficial and successful in both the countries.

4. Recommendation

On the basis of study of the study done on the adoption of IFRS in Pakistan and Australia, the recommendation that can be given for both the companies are:

Pakistan

The national accounting setting bodies of Australia should conduct various seminars, conferences and various short programs that makes the different users of the financial statements aware about the IFRS and the helpline should be started that can help to gain the knowledge when required.
The ICAP should make their role important in the IASB so that if any issue can be found that can also be given recognition in the accounts.

Australia

The professional accounting body should ensure the professional education and training according to the IFRS guidelines (Houqe et. al., 2012). The university courses should be revised for accounts that must include the IFRS approaches.
The government should bring in all the accounting bodies that affects the decision in Australia to find solutions to all the problems that are faced in the adoption of the IFRS approaches.

Conclusion

Through this assignment it can be concluded that the adoption of the IFRs is beneficial for every country and it increases the economic status of the company in the long run. Through adoption of this system investors got secured as they can rely on the financial statements. It can be said that this system is important for all the countries so that the business language is common in all the countries that will help the parties in understanding the accounting data easily.

References

Abeysekera, I., 2013. A template for integrated reporting. Journal of Intellectual Capital, 14(2), pp.227-245.
Ahmed, A.S., Neel, M. and Wang, D., 2013. Does mandatory adoption of IFRS improve accounting quality? Preliminary evidence. Contemporary Accounting Research, 30(4), pp.1344-1372.
Baig, M. and Khan, S.A., 2016. Impact of IFRS on Earnings Management: Comparison of Pre-Post IFRS Era in Pakistan. Procedia-Social and Behavioral Sciences, 230, pp.343-350.
Cheng, M., Green, W., Conradie, P., Konishi, N. and Romi, A., 2014. The international integrated reporting framework: key issues and future research opportunities. Journal of International Financial Management & Accounting, 25(1), pp.90-119.
Christensen, H.B., Hail, L. and Leuz, C., 2013. Mandatory IFRS reporting and changes in enforcement. Journal of Accounting and Economics, 56(2-3), pp.147-177.
Cotter, J., Tarca, A. and Wee, M., 2012. IFRS adoption and analysts’ earnings forecasts: Australian evidence. Accounting & Finance, 52(2), pp.395-419.
Daske, H., Hail, L., Leuz, C. and Verdi, R., 2013. Adopting a label: Heterogeneity in the economic consequences around IAS/IFRS adoptions. Journal of Accounting Research, 51(3), pp.495-547.
Elias, N., 2012. Discussion of the impact of mandatory IFRS adoption on accounting quality: Evidence from Australia. Journal of International Accounting Research, 11(1), pp.147-154.
Horton, J., Serafeim, G. and Serafeim, I., 2013. Does mandatory IFRS adoption improve the information environment? Contemporary accounting research, 30(1), pp.388-423.
Houqe, M.N., van Zijl, T., Dunstan, K. and Karim, A.W., 2012. The effect of IFRS adoption and investor protection on earnings quality around the world. The International journal of accounting, 47(3), pp.333-355.
Kang, H. and Gray, S.J., 2013. Segment reporting practices in Australia: Has IFRS 8 made a difference?. Australian Accounting Review, 23(3), pp.232-243.
Odia, J.O. and Ogiedu, K.O., 2013. IFRS adoption: Issues, challenges and lessons for Nigeria and other adopters. Mediterranean Journal of Social Sciences, 4(3), p.389.
Rashid, H.A., Amin, F. and Farooqui, A., 2012. International financial reporting standards (ifrs) and its influence on pakistan. Journal of Applied Finance and Banking, 2(2), p.1.
Rehman, I.U. and Shahzad, F., 2014. The economic consequences of mandatory IFRS reporting: Emerging market perspective. Engineering Economics, 25(4), pp.401-409.
Yip, R.W. and Young, D., 2012. Does mandatory IFRS adoption improve information comparability?. The Accounting Review, 87(5), pp.1767-1789.

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buy online assignment

Abstract

Introduction

Discussion

a) Literature review on the scope

b) Application of scope in the project environment and its impact on project success and managerial decision

Definition

Causes

Its impact on project success

Strategies/ways to prevent scope creep

Case of scope creep (from business, industry, or project)

Managing scope creep

Recommendations

Conclusion

References

Introduction

1. Factors affecting the production of PDA

2. Methods available for evaluating the project

3. Payback period of the project

4. Profitability Index of Project

5. IRR of the project

6. Sensitivity in NPV for change in price

7. Sensitivity in NPV to change in the quantity sold

8. Decision to proceed with the investment during corona virus period

Conclusion

References

Introduction:

Collection and details of job advertisement data and sources:

Name of the organisation and industrial Breakdown:

Job title and the description mentioned in Job portal and advertisement:

Personal attributes needed in corporate accountant mentioned in job advertisement:

Key roles and task and job responsibilities of corporate accountants given in the advertisements:

Professional and accounting qualification needs to be posted in the job advertisements:

The key roles learnt in MPA unit and the terms related to the advertisement collected:

Additional topic missing in Unit MPA but those are listed in the Job description of Corporate accountants:

Skills, responsibilities and attributes needed to become a corporate accountant:

Conclusion

References

Introduction

Strategy development models

Model 1 SWOT Analysis

PESTEL Analysis

Porter’s five forces

Conclusion

References

Introduction

Identify any three (3) specific examples of the different types of management accounting methods and/or techniques from the case

2. Are MAS relevant to contemporary organisations

3. What conclusions do you make about the relevance of MAS in today’s competitive and (in most cases)

4. Provide four (4) specific outcomes or lessons learned from each of the two articles’ research findings.

Conclusions

References

Part A: Contracts Law Question

Issue

Rule

Application

Conclusion

Part B: Corporations Law question

Issue

Rule

Application

Conclusion

References

Executive summary

Introduction

Foreign entry strategy

Competitive dynamics

Organisation structure

Knowledge Management

Innovation

Conclusion

References

Brand Positioning and Brand Equity

Introduction

Products of Coles supermarkets

Competitive Information

Environmental Scanning

Demand

Market Segmentation

Conclusions