Reference no: EM133776432

Question 1.

After finishing your 3-year contract as an Assistant accountant at Mega Mart, a multinational grocery chain, you have been recently appointed as a Strategic Management Accountant in Cheap Groceries Pty Ltd, a rapid growing local chain of grocery stores. As opposed to your experience at Mega Mart you were surprised to see a long list of suppliers with a great deal of time wasted in managing the suppliers and late deliveries. You suggested to your CFO of implementing Strategic Management upstream activities.

The CFO asked to you draft a detailed proposal of techniques used in Strategic Management upstream activities and its role in creating value for the organisation.

Question 2.

You are working as a Strategic Management Accountant in Super Swift, an electrical appliance manufacturing company. Your manager recently read an article in a highly rated Business Journals regarding the role of projects in executing business and corporate strategy. He was surprised by this concept as he always conceived project as something related to the building of infrastructure. Explain to him using the role and relation of project and project management with implementation of business strategy.

Question 3.

Navara council is a local council with one of its operational segments "Meal on the Wheel" employs only senior citizens on voluntary basis to prepare two course lunch and dinner meals for only people with physical or intellectual disabilities. One of the organisation's activities is to make gluten free pita bread for its sandwiches. At the end of year 1, Navara council purchased a pita bread making machine. This machine has now been used for 3 years. Management is considering the purchase of a newer more efficient machine. If purchased the new machine would be acquired at the end of year 4. Navara council has 2 options. Continue to operate the old machine or sell the old machine and purchase the new machine. No trade-in was offered by the seller of the new machine.

i. Should discounted cash flow be used in this decision and Why or why not.

ii. How the Net Present Value method, IRR and Payback method help Navara council to decide on the decision of retaining the old machine or acquired the new machine.

iii. Suppose the quantitative differences between the two alternatives are so slight that management is in different between the two proposals. Identify and discuss any qualitative factor that management should consider.

Question 4.

You are recently appointed as a senior management accountant for a large organisation in your first meeting with the CEO you suggest that you should be included in the strategic leadership team (SLT). The CEO is surprised by this suggestion as the previous incumbent had been happy to submit monthly financial reports to the SLT rather than being a member of the team. He asks you to prepare a report making a case for your inclusion in the SLT. Required Prepare the report for the CEO identifying the contribution that you could make as a strategic management accountant to the activities of the SLT.

Question 5.

Selecting among the portfolio of projects is always a difficult task as each project sponsor wants his project to be approved. Discuss tools and techniques used by the strategic management accountant in choosing a project. Also Identify and discuss any qualitative factor that SMA must consider should the quantitative difference between the two projects is very close.

Question 6.

Jackson sausages Pty Ltd is a medium-sized company that produces gourmet beef and chicken sausages for a highly competitive market. The company hold only about 15% of the gourmet sausage market and struggles to maintain that market share. Joe Jackson, the sales manager has put a lot of energy into visiting new and potential customers to try to understand their needs. He is finding difficult to retain customers and find new customers as the new market leader are very aggressive and seems to have some form of superior market intelligence that allow them to anticipate changing customer preferences. Joe feels that his company is a follower rather than a leader when it comes to dealing with customers. Joe has recently heard of Customer Relation Management (CRM) and is wondering whether this could provide any advantage for his company.

1. Describe what is meant by Customer Profitability Analysis CP and advantage

2. How might CPA assist Jackson sausages to retain customers and attract new customers