In the context of introducing new products within the existing product line, certain tools are required that helps in implementing successful marketing strategies easily. Murphy, the owner of the Ski Equipment store is looking for product expansion by introducing fishing and camping requirements. Murphy must focus on inventory management, cash flow, and customer response rates for attaining competitive advantage over others. Seasonal trends in sales seen in the SKI equipment business further hamper the sustainability of the Ski equipment business. The synopsis containing details of the essential requirements for smooth running of the business can be jotted down as follows:
In this segment, the performance analysis of the suppliers is reviewed so that improvement in terms of service quality can be done easily. According to Fleisher and Bensoussan (2015, p. 14), discount rates and the rebates provided by the suppliers are to be checked with the competitors. Briefly, improvement in service quality after scrutinizing the requirements of the customers based on the ranking is done in supplier management. As opined by Goetsch and Davis (2014, p. 25), indicators measuring supplier performance in terms of quality ensure a smooth running of the business.
Measurement based on key performance indicators like customer response, customer satisfaction, the problem-solving process adopted by the organization helps in ensuring long terms consistency of the business. According to Patassini (2017, p. 21), retention of the customers and complaints resolution methods are necessary for a successful business.
In this segment, reports on monthly inventory statements for all the product lines are to be kept so that detailed analysis showing the trends of inventory helps in assessing the response of the customers for the SKI products.
Reports on monthly sales reports and the profitability statements for each product line help in comparing the sales and profit trends for the past years (DRURY, 2013, p.49). Future profit estimation becomes easier for Murphy.
Cost-benefit analysis of the Ski products helps in identifying the areas where cost reduction is to be done. According to Patassini (2017, p. 21), a cost reduction strategy helps in keeping the products cost much lower and convenient for the customers.
Murphy can use all the above-mentioned tools for ensuring the long-term sustainability of the products.
Accountants ponder over both financial and non-financial information and provide assistance to the management of the value creation process. Accountants look after the financial stability of the business. The performance of the organization and makes detailed trend analysis with the financial statements of the competitors includes in the duty list of the accountants. The main duty of the accountant is to ensure accuracy and transparency in financial statements. According to Coussement et al. (2015, p. 8403), deteriorating quality and the trend for seasonal sales are hampering the growth of the business.
In this segment, the accountant must identify the loopholes that are causing quality deterioration for the products. Accountants must further assess the opportunities that are available to Murphy for expanding the product line.
Therefore, the statement showing that accountants look after the financial side of the business is not true. The advice in respect of performance appraisal falls within the duty list of the accountants.
According to Stubbs and Higgins (2014, p.1068), financial management of data refers to an accumulation of financial statements used for assessing the financial performance of data. In this segment, the accountants not only check the accuracy of the financial statements but also prepare plans for a control mechanism that is required for maintaining long-term consistency in the business.
Therefore, the duties of accountants are to identify the area that requires improvement. Identification of key performance appraisal techniques includes the identification of areas where improvement can be proved beneficial for Murphy.
The framework for planning the strategies for improving the performance of the business lies in the hands of the accountants. As opined by Martínez‐Ferrero et al. (2015, p. 45), the establishment of a profitable framework for the business after rescheduling the capital structure acts as the benefactor for the long-term success of the business.
A detailed assessment of the duties of the accountants shows that accountants not only look at the financial aspects of the business but also looks after the non-financial information required for ensuring the future success of the business. Therefore, the statement is not true.
Murphy, the Ski business owner needs to adopt certain actions that can act as the catalyst for success in the business. The recommended actions to be taken by Murphy for the betterment of the business can be jotted down as under:
1. Preparation of detailed reports on budgets (both monthly and annually) helps in ensuring consistency of the business.
2. Preparation of performance indicators list helps in assisting the business towards attaining competitive advantage over others.
3. Training modules for enhancing the productivity of the employees help in establishing a stable relationship with the customers.
This recommended action helps in running the business more effectively.
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