Lessons learned from this topic and case study: 1. Managers need to be able to estimate the costs of different responsibility centres and products to assist with monitoring the performance of different departments and also to assist with decision making about product pricing, profitability of individual products, assist with decisions when making changes to product lines and various other managerial requirements such as controlling costs and valuing inventory for financial statements. 2. Dividing the business into cost objects such as departments or products can assist with creating greater accuracy when allocating costs to each ‘cost object’. 3.
When there is an established item, L.L Beans uses the trends based on past demand to forecast future sales ; these trends being mostly seasonal and therefore generates enough information to know how much stock is needed when. On the other hand, for new items, which do not have sufficient past demand data, L.L.Beans uses the A/F ratio which is based on past behavior of individuals with the actual demand. Once this is done, LL.Beans must calculate the profitability of the item and the overstock and under stock costs which calculates the optimal amount of the item. Question 2: What item costs and revenues are relevant to the decision of how many units of that item to stock? The manufacturing cost for LL Beans and the price at which the item is sold are relevant to the decision of how many units of that item to stock because with this the profit margin of each item is calculated giving an optimal balance of how much to of the item to stock.
How do you think managers can ensure that their performance behavior meets the requirements of the organization for which they work? It is important for a manager to have experience with and an understanding of the processes and procedures carried out by their team/department. Managers should be familiar with company schedules and deadlines, communicate these deadlines to their team and plan accordingly. They should also have a clear understanding of the company’s goals and objectives. A manger should report on and audit their team/departments overall productivity and outputs to ensure that time and recourses are being spent wisely.
It needs to forecast in a realistic figures and attainable goal. In a organization, it will split up the budget between different areas such as sales and operating, production on variable or fixed cost to spend, marketing, human resource on knowing the number of employee to hire etc. Budget must be revised periodically, as when the business moves along with the economic and environmental change. So a budget must also adapt changes whenever required. If without the planning of a budget, the company may easily over spending on the cost.
This may require the team manager to adopt a more tell style, providing clear communication so that everyone knows what to do to achieve KPI success. On the other hand, team managers may take a more suggestive approach with other managers of equal standing in order to get their co-operation for tasks. External factors may arise when dealing with customers. For example, a technician may need to use a joins style to convince a customer to accept a cable route or replacement product for an item that is temporarily out of stock. Explain why these leadership styles or behaviours are likely to have positive or negative effects on individual and group behaviour: Tell - In this style of management, subordinates are expected to do the job the way the manager tells them to do it.
And they understand the importance of reviewing and redesigning their structures on an ongoing basis. According to renowned management theorist Henry Mintzberg, an organization's structure emerges from the interplay of the organization's strategy, the environmental forces it experiences, and the organizational structure itself. When these fit together well, they combine to create organizations that can perform well. When they don't fit, then the organization is likely to experience severe problems. Different structures arise from the different characteristics of these organizations, and from the different forces that shape them (which Mintzberg calls the "basic pulls" on an organization).
According to Sue Purdum, he has to reduce his cost-of-sales and / or improve his level of customer service to add more value to his customers. Transportation from SAB’s warehouse to its customer stores is a major part of its cost-of-sales. Also, our ability to deliver customer’s orders in a timely and reliable manner impacts significantly SAB’s customer service. Sue Purdum would like our senior management team to consider what we could do to help SAB remain competitive and improves
I believe that both Lean and Six Sigma will be useful for BBM in completing their Project of improving customer satisfaction index and reducing overall customer wait time. BBM can use the Lean approach by understanding their existing processes and looking for ways to eliminate waste. Waste should be viewed from the customer’s perspective and defined as any action in the current processes that the customer would not be willing to pay for. A key component in the Lean approach is to determine what matters to the customer. Some potential examples of waste in the BBM case are: (1) Using both sales associates and mobile phone specialists in the Customer Engagement Process, (2) Time associated with entering customer information into the system and time to validate and process entered information, (3) Cost associated with holding accessory inventory or lead-time associated with ordering accessories not available upon request.
Guillermo Furniture - Accounting Decisions In order to Guillermo to identify to make an informed decision about the direction to take his company they need to understand the audiences, purposes and natures of financial statements and managerial reports. In addition to this, the scope of the presentation will explain the use of financial accounting information so Guillermo can make those informed and ethical business decisions. Break Even Analysis At the heart of break-even point or break-even analysis is the relationship between expenses and revenues. It is critical to know how expenses will change as sales increase or decrease. Some expenses will increase as sales increase, whereas some expenses will not change as sales increase or decrease.
There is, however, a difference between management and leadership. Which is more effective for efficient and effective supply management? First of all the Purchasing or Materials Management division of a company must align its objective to the organization’s objective. Supply Management professionals must be involved from the start in the development of the company’s business plan to represent the customers’ potential issues. Also, any changes to the business plan will need supply management’s assistance to implement the changes successfully.