Instructions
Reflect on your experience in job costing. Describe how you allocated activities to the cost of a job. Did you find any areas the business could improve upon? Your journal entry must be at least 200 words in length. No references or citations are necessary.
The next step in the process is to begin identifying the challenges and impediments to implementing a quality improvement plan. In the analysis consider the individuals affected by the change as well as the cost of implementing the quality improvement plan.
QUESTION 11
Data as follows:
Annual Budgeted overheads as follows:
Required:
MHs Batches Product Z73,800700Product K96,200300Total10,0001,000
A chemical is used to keep the presses from overheating and is automatically sprayed in fractions of seconds to keep the press operating smoothly to lubricate and prepare the metal. The chemical also keeps the press from sparking during the punching process. A small spark could cause a fire and safety hazard. Therefore, the chemical is crucial to the operation of the stamping process.
The stamping solution contains proprietary ingredients that are toxic and considered to be hazardous waste, and disposal must be through EPA approved methods. The cost to dispose of the chemical is many times greater than regular waste products.
Currently, Bell Products uses a traditional, volume-based costing system for its clutch plate products. Total manufacturing overhead for the period is allocated to the clutch plates based on machine hours.
Fred, who was recently hired, is the controller for Bell Products. He has five years of experience as a cost accountant at a lumber manufacturing facility. At the lumber plant, Fred implemented an activity-based costing system that helped the plant manager determine the profitability of various product lines. After getting to know the manufacturing process at Bell Products, Fred has determined that an activity-based costing system would help management make better decisions and track the costs of the clutch plates more accurately.
Tina is the manager of the stamping department and is good friends with Fred. Tina runs a very efficient department and has earned several bonuses for the stamping department’s production and profitability. Each of the department managers are evaluated based on the profitability of the departments based on internal cost reports.
If activity-based costing is used to allocate costs and the hazardous waste of the stamping chemical is allocated to the department that uses the product, the internally calculated profits of the stamping department would decline drastically. The decline in profitability would be due to the extreme high cost of the stamping chemical and this cost would be directed allocated to the stamping department.
Tina decides to take Fred to an expensive restaurant and eventually brings up the activity-based costing system. She voices her concern about the allocation of the hazardous waste being directly allocated to her department. She asks Fred if there is any way that he could reduce the amount of hazardous waste allocated to the stamping department. Fred values Tina’s friendship and realizes that she is on the compensation committee that evaluates Fred on an annual basis. Fred definitely wants to keep Tina happy and on his side.
As a result, Fred decides to not setup a cost pool for hazardous waste. He reasons that since the hazardous waste has always been a part of the manufacturing process, he will bury it as part of the manufacturing costs that are allocated across all departments. He justifies his decision because the activity-based system will still accurately allocate all other costs and it is much more accurate than the old traditional costing system. Fred feels no one will get hurt. Since the activity-based costing cannot be used for external reporting, Fred feels that his decision is not illegal.
Using the Institute of Management Accountants Statement of Ethical Professional Practice on page 13 of your textbook (Exhibit 1-7) as an ethical framework, answer the following questions:
MGT/576 v1
Porter’s Five ForcesComplete the table below. For the company you’ve decided to assess in week 1, determine the strength of each of Porter’s Five Forces and of the complementors. Justify your determination with examples.
Industry force Strength Provide a justifying your determination
with examplesHigh Medium Low
Example x This is why I believe it is medium.
Threat of new entrants X P&G is an established organization with several brands, so new entrants pose no competition to their revenue and customer base.
Power of buyers X Consumers spend billions of dollars on this brand each year, so they help maintain P&G as a leader in the industry.
Power of suppliers X The delivery of products to consumers is based on suppliers being able to fulfill their demand. If there were a supply issue, this could have high potential to negatively affect revenue.
Power of substitutes X There are not many substitutes for P&G products and the ones that are on the market, have no bearing on revenue.
Rivalry among competitors X P&G dominates their industry and there is no rivalry that matches their talent and revenue base.
Complementors X There are several other smaller companies that sell products similar to those available at P&G. However, those complementors have been around for quite some time and have not been able to reduce the dominance of P&G.
References:
Brown, B., & Anthony, S. D. (2011). How P&G tripled its innovation success rate. Harvard Business Review, 89(6), 64-72.
Copyright 2020 by University of Phoenix. All rights reserved.
Porter’s Five ForcesMGT/576 v1Page 2 of 2
Copyright 2020 by University of Phoenix. All rights reserved.
EXPANDING P&GJeannette Stanley
Agenda
■ Chosen Country
■ Diamond of National Advantage Analysis
■ Success Analysis Forces
■ Hindrance Analysis Forces
■ Leadership Actions
■ Recommendation
■ Conclusion
■ References
P&G in Zimbabwe■ There is no P&G location in
Zimbabwe
■ P&G has a presence in the country
■ Low start up costs
■ Large earning potential
Diamond of National Advantage
Industry Rivalry
■ Multinational companies are eyeing the same market.
■ Locals companies pose a significant threat for Procter and Gamble.
■ Convenient small scale sellers do dominate a significant share of consumer goods in Zimbabwe .
Demand Conditions
■ There is an increase in consumer goods like groceries.
■ People prefer to buy from retailers who are sensitive to their prices.
■ People demand to consume healthy consumer goods and are cautious about being exploited.
Diamond of National Advantage
Supporting Industries
■ The logistic industry is not as reliable as Procter and Gamble could wish.
■ The is banking industry that would support transaction purposes.
■ There is a private security firm that would offer good security to the premises of Procter and Gamble.
Factors Endowment
■ Affordable labour is available from Zimbabwe people.
■ Procter and Gamble have a strong capital base and thus can finance its operations.
■ It is not as hard to set a strategic location to set up stores in Zimbabwe.
Success Analysis Forces
1. Increasing growth of the economy
■ The economy of Zimbabwe is growing faster than that of its neighbours.
■ This increase supports the consumption of more consumer goods for locals.
■ The higher consumption of consumer goods would facilitate the success of Procter and Gamble in Zimbabwe.
2. Increasing purchasing power
■ With increasing economic actions, people's ability to buy is increasing (Bonga & Mugayi, 2018).
■ This implies that people would not mind paying higher prices for goods from Procter and Gamble.
■ Furthermore, they can buy more units per person.
■ This is a basic success factor for Procter and Gamble.
Success Analysis Forces
3. Improving political climate
■ The political climate is stabilizing in the country.
■ For the number of years that Procter and Gamble have operated there, it has operated a steady political climate.
■ This stable climate facilitates a suitable environment to do business from.
Hindrance Analysis Forces
1. Limited online footprint
■ Zimbabwe is growing in terms of digital migration, just like other countries.
■ This limits the ability of Procter and Gamble to reach customers over the digital space.
2. Limited diversity
■ The company has not invested in so many products.
■ This implies it only attars a limited number of customers.
■ This also limits the profitability of the company.
Hindrance Analysis Forces
3. Uncertainty of regulations on foreign companies
■ The country is yet to establish a stable regulation pertaining regulation of foreign companies.
■ This poses risks for a government that would impose strict policies for foreign companies.
■ This would make it hard for Procter and Gamble to operate in Zimbabwe.
4. Limited products
■ This implies that the company is likely to face stiff competition from locals and other foreign companies in the industry.
■ This would also reduce customers the satisfaction they would not find everything they need from one roof.
■ In the long run, these customers are likely to be lost to competitors who have more varieties of consumer goods.
Leadership Action
1. Engage locals at the executive positions
■ This is for a proper understanding of the buying culture (Foss & Pedersen, 2019).
■ Furthermore, this is to understand how locals can be triggered to buy more.
■ This would also create a good image of the company to locals so that they would buy more.
2. Embrace decentralized management
■ The company should consider allowing managers in Zimbabwe to make their decentralized decisions.
■ This makes it more flexible for them to react to different market forces.
■ This would also enhance their proactive preparedness for different market changes.
Leadership Action
3. Engage staff in decision making
■ The company should consider involving different stakeholders in the process of making decisions.
■ This is to have them support decisions made.
■ Their supporting decision would facilitate the effective operation of Procter and Gamble in Zimbabwe.
Recommendation
i.) Engage more locals in strategic management
■ This would incline the strategic decision made and purchasing behaviours of locals.
■ This would also help t protect the interest of locals while doing business simultaneously.
ii.) Consider Diversifying into more variety of products
■ This is to attract more customers (Guyader & Piscicelli, 2019).
■ This is also intended to increase shopping satisfaction since customers can get everything they need under one roof.
Conclusion
■ In conclusion, expanding to Zimbabwe is a good decision by Procter and Gamble.
■ Expanding in this market is as attractive because of different success forces discussed above.
■ However, Procter must consider hardships and possible challenges and be ready for them.
■ Procter and Gamble should incorporate leadership strategies as suggested and discussed above in the expansion strategy.
REFERENCES:
Foss, N. J., & Pedersen, T. (2019). Microfoundations in international management research: The case of knowledge sharing in multinational corporations. Journal of International Business Studies, 50(9), 1594-1621.
Bonga, W. G., & Mugayi, P. (2018). An Explanatory Analysis of the Potential Impact of Citizens’ Purchasing Power on Industry Revival in Zimbabwe. Researchjournali’s Journal of Economics, 6(4), 01-07.
Guyader, H., & Piscicelli, L. (2019). Business model diversification in the sharing economy: The case of GoMore. Journal of cleaner production, 215, 1059-1069.
For this discussion activity, follow the following steps in the Discussion area in this learning module.
The assignment will be evaluated using two major criteria: relevance and thoughtfulness.
Start a New Thread
Email memo to the CEO of Procter and Gamble outlining a plan to create economic, social, and environmental value. include the following items:
Please use all attachments as this information is needed.
https://www.youtube.com/watch?v=hX0g66MWbrk Watch the above video and express your opinion agreeing or disagreeing with the idea in the video. For additional info, you can read the case 1.2 in your book highlighting Tom’s shoes. For a high grade, be detailed and make a compelling argument in favor or against (at least 300 words) and respond to 2 classmates posts.
https://www.youtube.com/watch?v=hX0g66MWbrk Watch the above video and express your opinion agreeing or disagreeing with the idea in the video. For additional info, you can read the case 1.2 in your book highlighting Tom’s shoes. For a high grade, be detailed and make a compelling argument in favor or against (at least 300 words) and respond to 2 classmates posts.
Write a 1 page (12 pt Times New Roman font, 1-inch margins, complete sentences, college-level writing), reflection about the videos and the material posted. Think about the ideas presented and relate the materials to your life as a student.
Answer the following questions:
What happens when multitasking?
Why is it helpful to space out what you learn?
What is metacognition?
Why does mindset have real implications for students?
What role does sleep play in your ability to learn?
How do these factors affect you? Give some examples from your student experience.
March 26th, 2022 
