Report On Advantages Of Implementing Objectives, Strategies, And Planning Systems For Company XYZ

Cost benefit

Advantages of implementing the process

As per the given case study there are certain advantages if the company starts working on expanding the products and does not restrict itself to just baking the cakes.

Cost benefit: The initial investment may be huge yet the major reason for entering into a new product line is that the company can operate under the existing production structure and it will save the major resources. Moreover in the later years the people are willing to pay more for the variety and choices and options (Otley, 2016).

Existing expertise: The existing expertise will be useful for the company as they have the knowledge if baking and the entrance in the new product will ultimately be easy for the company. By concentrating on the range of the products the customers will be assured that the company’s product line will be a successful extension (Cooper, Ezzamel and Qu, 2017).

Competitive Barriers: By having a broad concept of products within the same category it becomes critical for the competitors to find a place in the market ground. The impact of fragmenting will also be one of the vital points.

Economies of scale: As given in the case study the volume of the sales has been decreasing, the company can get rid of this problem via broader product range. The level of sales will increase as the company is fulfilling the needs of the customer and it is possible to achieve the economies of scale (Taherdoost, Sahibuddin and Jalaliyoon, 2014).

Useful information in terms of financial as well as non-financial dimension

Financial

Financial information means the data such as credit cards, account balances and other monetary facts about a person or the organisation. The financial information also includes the billing, the credit assessment, and the loan transactions.

The financial information suitable for the managing director and Brown is the cost that would be involved if the company enters into some new product line. The budget required for making the product. The price and the margin need to be figured out in context with the competitors. The packaging cost and the delivery charges are also of the importance and relevance (Smith and Wong, 2016).

Non-Financial

Coming to the non-financial information both the managing director as well the Brown must be interested in the sustainability and the future growth. The ethical practices are also of greater concern. Moreover, the interest can be also in the method of making the cakes and other bakery items (Bustinza, Bigdeli, Baines and Elliot, 2015).

Intangibility: the physical products might be tangible but the services are intangible in nature. The services cannot be touched or observed so it becomes critical for the clients to tell in advance of what they are going to receive (Quinn and Connolly, 2017).

Inseparability: Personal services cannot be detached from the individual as the services are created and consumed simultaneously.

Variability: the basic services involve the people from different culture and there is a possibility that the same problem can be solved in more than two ways by different people. Therefore, it becomes important to minimise the variances in the performances (Marshall and Steinbart, 2017).

Existing expertise

Perishability: Services generally possess the high degree of the perishability. The unused capacity is not kept for the future use as it is not the product. If the services are not used today it is lost forever. For example the empty seats in the aeroplane cannot be transferred to the next flight if the person has not chosen it for (Theriou, 2015).

Change in demand and pricing of services: The demand for the services fluctuates and can be seasonal and the prices of services are usually dependent on the basis of the demand and the competition (Lovelock and Patterson, 2015).

To what extent these variables are present in the following areas is of core importance

Electricity gas and water supply: Generally the electricity gas and water supply mostly affects the factor of the change in demand. As the demand increases the prices fluctuates and tends to rise. The water supply and Electricity gas are necessity therefore it will be utilised irrespective of the prices. They are also perishable in nature as once used, it gets finished (Pucheta?Martínez, Bel?Oms and Olcina?Sempere, 2016).

Information media and telecommunication: The dimension of the intangibility is present to a high level of degree in case of the information and telecommunication medium. The information cannot be felt or touched but its affect can be seen. Moreover, the information media and telecommunication are inseparable of each other (Fuller, 2016). The information cannot be communicated without a medium and the medium cannot run without the information.

Education and training: The variability factors have a larger extent in case of the education and training. For example different teachers will teach different students with their own perspective. Apart from that the factor that most affects it is the perishability as thought the knowledge gets retained but the services are detached from the environment (Gillespie and Riddle, 2015).

References

Otley, D., (2016) The contingency theory of management accounting and control: 1980–2014. Management accounting research, 31, pp.45-62.

Cooper, D.J., Ezzamel, M. and Qu, S.Q., (2017) Popularizing a management accounting idea: The case of the balanced scorecard. Contemporary Accounting Research, 34(2), pp.991-1025.

Fuller, G.W., (2016) New food product development: from concept to marketplace. Costa Rica: CRC Press.

Gillespie, K. and Riddle, L., (2015) Global marketing. California: Routledge.

Lovelock, C. and Patterson, P., (2015) Services marketing. Australia: Pearson Australia.

Taherdoost, H., Sahibuddin, S. and Jalaliyoon, N., (2014) Features’ Evaluation of Goods, Services and E-Services; Electronic Service Characteristics Exploration. Procedia Technology, 12, pp.204-211.

https://marketing-insider.eu/characteristics-of-services/

Smith, L.C. and Wong, M.A. eds., (2016) Reference and Information Services: An Introduction: An Introduction. ABC-CLIO.

Bustinza, O.F., Bigdeli, A.Z., Baines, T. and Elliot, C., (2015) Servitization and competitive advantage: the importance of organizational structure and value chain position. Research-Technology Management, 58(5), pp.53-60.

Marshall, B.R. and Steinbart, P.J., (2017) ACCOUNTING INFORMATION SYSTEMS. PEARSON EDUCATION LIMITED.

Theriou, N.G., (2015) Strategic Management Process and the Importance of Structured Formality, Financial and Non-Financial Information. European Research Studies, 18(2), p.3.

Pucheta?Martínez, M.C., Bel?Oms, I. and Olcina?Sempere, G., (2016) Corporate governance, female directors and quality of financial information. Business Ethics: A European Review, 25(4), pp.363-385.

Quinn, J. and Connolly, B., (2017) The Non-Financial Information Directive: an assessment of its impact on corporate social responsibility. European Company Law, 14(1), pp.15-21.

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