Competitiveness in the Supply Chain Management Be310

 

Part A

1) The known firm in the global market has detected new way of competitiveness that is supply chain management, supply chain management is considered as group of approaches used to effectively merge or consolidate all suppliers, inputs, client and stores, in order to fulfill production operation at the accurate standards in accurate quantities and efficiently  allocated at the right customer at right time with perfect quality and also reduce the expenses of manufacturing operation, it contains all connected actions or business that are basic in order to produce the final items and sell it for the customers in market and face the client requirements and the pleasure the clients, this shows that supply chain management contains the actions that are accountable for converting the raw materials or inputs to the finished goods through ought the global market. The actions and roles of supply chain management sector in the firm include the following actions: administrating of inventory and inputs, buying the transportation service, handling with suppliers to get raw materials , supervision and administrating the process of transportation, no doubt supply chain management assist the firms to fulfill its organizational targets or missions via minimize working capital size, raise the round of inventory turn, administrate the accounts receivables as well as payables.

There are several definitions that relates to value chain, Porter has specified  value chain as the interior operation and business performed and operated via the firm to outline, manufacturers , promotes, deliver its finished items in the global market. Value chain is considered as set of functions which are fulfilled via company to make value to its items to satisfy the customers, management accounting performs material part to assist directors to organizes  these business roles, these roles of value chain contains the following:

a) Research and development, this is the operation in which operated by the company to get notions to make or manufactures  new items or services.

b) Design or outline: it’s the operation of outlining and engineering of the items and  company’s services.

c) Production or manufacturing process , it’s the operation or buying and coordinating the inputs and resources required to make the finished items and deliver it.

d) Marketing: when the firm make finished items, the marketing operation starts via getting the way that empower the firm to perform promotion and vend finished items to clients.

e) Distribution: when the client recognize our items via marketing operation, distribution process starts by the firm through effective ways to deliver the finished items and service to the client.

f) Service: it is considered the process after the selling , the firm support services or actions after vending to its clients like repairing operation of their product, services to support competitiveness to the company.

KVK Industries could make value to its items through stratifying the roles of value  chain analysis through ought  the manufacturing operation,  KVK Industries should create research to establish new products or improve its current items, KVK Industries should find the way of production that can enable it to achieve lower cost by achieving economics of scale and high production .  the CEO should oversee the financial operations to control the company and they should depend on innovative equipments and skilled people to minimize  the cost.

 

 

2-

26000	Beginning inventory of direct materials
140000	+ purchases of direct materials  in 2018
(12000)	-Ending inventory of direct materials in 2018
154000	=direct materials used  in 2018

 

154000	Direct materials used  in 2018
154000	+ Direct manufacturing labor
25000	+Total manufacturing overheads costs
333000	=Manufactured cost incurred in 2018

 

 

Beginning work in process inventory + manufactured cost incurred in 2009 - Ending work in process inventory	16000 333000 (18,000)
Cost of goods manufactured	331000

 

Cost of goods sold

Beginning finished goods inventory + Cost of goods manufactured	40000 331000
Cost of goods available for sale - Ending Finished goods inventory	371000 (28000)
= Cost of goods sold	343000

 

(ii)

Gross profit

Sales - Cost of goods sold	398000 (343000)
Gross profit	55000

 

KVK Industries Income statement
Sales revenue	398000
Less: cost of goods sold	(343000)
Gross profit	55000
Less: selling expenses	(15450)
Less ; administrative expense	(9560)
Operating income	29990

 

3-

(i) Total cost for output for product M

	First quarter	Second quarter	Third quarter	Fourth quarter
Expected units to be produced × Variable cost per unit	100,000   30 $	200,000   30 $	500,000   30 $	400,000   30 $
Total variable cost + Fixed costs	3,000,000   200,000	6,000,000   200,000	15,000,000   200,000	12,000,000   200,000
Total cost for output	3,200,000	6,200,000	15,200,000	12,200,000

 

(ii) Total cost per unit

	First year	Second year	Third year	Fourth year
Total cost for output ($) ÷ Expected units produced	3,200,000   100,000	6,200,000   200,000	15,200,000   500,000	12,500,000   400,000
	32 $	31 $	30.4 $	31.25 $

 

4) Calculating operating income for two options for product “N” in different years

In existed situation

Sales [1200 units × 200 $] - Variable costs [1200 × 48 $]	240,000 $   (57,600)
Contribution margin - Fixed Costs	182,400   (40,000)
Operating profit	142,400

 

In additional promotion

Sales [1500 units × 200 $] - Variable costs [1500 × 48 $]	300,000 $   (72,000)
Contribution margin - Fixed Costs	228,000   (50,000)
Operating profit	178,000

 

According  to that , I  advice the firm to stratify the extra promotion. This could assist the firm to raise unit sold to 1500 units, and then the profits also will raise to the amount of 178,000 $.

 

Part b

 

Job Order Costing for Modern Furniture

 (1)

Absorption rate =estimated overhead/ budgeted activity level

Assembly Department predetermined overhead rate:-

Predetermined overhead rate = Estimated total manufacturing overhead cost/Estimated total amount of the allocation base

The assembly department =135000/4500 MHs=30 H per machine hour

Finishing  Department predetermined overhead rate:-

Predetermined overhead rate = Estimated total manufacturing overhead cost/Estimated total amount of the allocation base

The Finishing  department=103000/6250$ direct labor hours =16.48 per direct labor hour.

Assembly Department overhead applied:

62.5 machine-hours x $30 per machine hour…     $    1875

 Finishing  Department overhead applied:

     $150 direct labor cost x 16.48  .............................     2472

TOTAL OVERHEAD COST………………………….. $ 4347

 

 

2.

-Total cost of Job No. 555

	Assembly Dept.	Finishing  Dept.	Total $
Direct material	$ 1700	$ 1125	$ 2825
Direct labor	$2025	$ 1800	$ 3825
Manufactured overhead applied	1875	2472	4347
Total cost	5600	5397	10997

 

Unit cost for Job No. 555:-

Total cost, $10997/ 500 chairs  = $21.994

Total cost	5600	5397	10997
÷Units	500	500	500
Cost per unit	11. 2	10.794	$21.994

 

 

 

 

 

 

 

3-

The advantages of using ABC system ;

1-support the utilizing of ABM in the company

2-ABM concern on administration’s attention on the actions which leads to occur costs

3-superior item and pricing decisions

4-minimized costs

5-operating the business more effectively

6-ignoring business which do not make new values

7-developing the product design or outline

8-result in developed  actions and pleasured clients and raised net income . 

9-accurate product cost

The disadvantages of using ABC system ;

1-      It is expensive and complex because it include many costing pools and different cost drivers

2-      The basic costs and disadvantage of an activity based costing  are considered the measurements essential to fulfill it. activity based costing  needs administration to predict costs that links to activity pools and specifying and assessing cost drivers to be cost allocation bases.

3-      Activity based costing  need several computations to specify costs of items and services.

4-      These assessment  are expensive. activity based costing  rates also requires to be refreshed regularly.

5-      Choosing the drivers is considered hard process.

 

 

 

 

 

References

Charles T. Homgren.,2010,Cost Accounting, 14^th Edition 2010.

Cherrington, J., 1985, et al. Cost and Managerial Accounting. Dubuque, IA: Wm. C. Brown Publishers, 1985.

Micheal H. Hugos ,2005, Essential of Chain Management, Third Edition 2005

The Impact of the Pandemic Covid 19 on the Business Environment in Oman

 

More part time employment

The crisis of Covid 19 has its impact on the business environment in Oman as employment strategies started to depend more on part-time employment in order to let employees come in fewer numbers and this supports social distance that can protect them from getting the virus. Part time employment led to more work from home rather than office work and making meetings online via applications. This has led many companies to turn to online sites to attract its customers to purchase goods online and this encouraged shipment to use faster and more secured shipment techniques. 

More seasonal employment

Another issue that appeared as a result of Covid 19 is using temporary and seasonal employment as in fields such as hotels, hospitality, tourism and restaurants, work environment stopped to be busy as usual and stopped receiving many clients so temporary employees became needed and many employees have left their jobs to suffer unemployment.

Unemployment in traditional industries

Unemployment became a result of many people losing their permanent jobs in traditional industries such as food industry, clothes and others which made the Omani business environment suffer the existence of many natives without jobs, this has led also to firing many expatriates and sending them back to their countries as there are no places for them in many business organizations that lost its business in the crisis or reduced its productivity and profitability.

Changes in job-for-life expectations

The difference in the way people get jobs led to changes in job-for-life expectations as people who work in temporary jobs stopped having future ambitions related to work and this reduced having a job for life or even expecting that.

Business implications

Flexible working arrangement and less employment loyalty  

Less employment loyalty has become apparent in many sectors in the business environment of Oman. This resulted from employing temporary people who really don't belong to the organization and just work for receiving their wages and as a result this reduced ambition and career expectations for many workers in Oman. This led also to employees' turnover as the employee seeks better wages at most time and can leave work easily if there is a better job and a higher salary which affect the business organization's productivity and led to reduction in the quality of many outputs in many business organizations.

Another impact the pandemic Covid 19 left on the business environment in Oman is applying more flexible working arrangement that reduced costs on the company such as holding meetings online, performing more tasks at home by employees and focusing on online selling which raised the use of social media sites and websites to attract customers and enabled more electronic means of money transactions. This was good in reduction of costs but also led to employees' turnover and lower quality in service delivery in many areas. This changed the way business is managed greatly.

The case of poor frank case B628

 Q1

According the case of poor frank case, It is clear that the instance of poor frank was deemed as bounded problem because of clarity of problem “rate problem” because the problem is obvious, this leaded to call it as bounded problems and if it is mysterious, we call name it as unbounded problem . The decision making process is just powerful if the director has all the data and alternatives accessible so as to settle on the right decision for the association's survival. Settling on essential decisions dependent on suppositions is poor administrative practice albeit now and then vital if certain data is inaccessible so as to settle on a speedy decision. The tasks and missions of the operation division where the Frank Henderson is manager  are many such as  enlisting individuals for classes, booking inns and meeting focuses as preparing locales, procuring and preparing course pioneers, satisfying requests for materials, planning solicitations, and dealing with client request and grumblings. No doubt that the Frank Henderson is the executive of a small special operation division in a $300 million training services administrations and publishing organization, And he is responsible for satisfying the customers by 50 persons through achieving high rates and this is considered the core of the problem because of reduction in the rate  In this case , there is obvious problem that face the operation manager “Frank Henderson”, so we can say that the problem is bounded problem  because we make sure that the problem is rate problem , so we cannot say this problem is unbounded. No uncertainty the issue of moving from cheap and dirty facilities to fancy and expensive facilities is considered as costly issue  in the short term and this issue may be good in the long term , but  the working hours have been reduced  in the operation division by 20% lower than  the working hours in the past facilities and this negatively affected  on the human resources size because this costly process pushed  the manager to depend on cheap staff in temporary way to minimize the operations costs and solve the rate problem in quickly way. Problem solving or problem solving is considered a data -based search practice and the scan is for data. Aside from those problems limited to our very own little circle of individual learning and impact, the data important to take care of a business issue is normally dispersed about the association. In addition, it isn't really in a structure helpful for discerning examination, problem solving, or decision making. Subsequently, over the span of taking care of a business problem, we should remain consistently centered around the data we need, the data we have, and any contrasts between the two. In spite of the fact that the prompt object of the search procedure is data, a definitive objective of the problem solving process is action. Regardless of whether a decision is made to do nothing, this is a cognizant, purposeful act. In any case, the suitable move to make, particularly in a hierarchical setting, isn't in every case effectively decided. As such, despite the fact that we realize that a circumstance shows an issue and that something must be done about it, we are much of the time dubious with regards to the move to make. What makes an issue be problem, at that point, is uncertainty with respect to the move to make. On the off chance that we are gone up against by a circumstance requiring activity and we know quickly what to do, we do it. We may consider a circumstance an issue since it requires activity, yet it isn't the sort of issue that expects us to make sense of what to do except if we likewise are hindered, baffled, or stuck. The most key target of the problem solving process is to lessen uncertainty with respect to activity. Uncertainty is diminished by data. It is consequently that problem solving is said to be a data based inquiry activity. (Sundstrom,1990).

There are different manners of reasoning or thinking. One is how much a circumstance is a piece of a related arrangement of problem or circumstances – how 'bounded' an issue is. While it is most likely best never to think about a problem or circumstance as being detached, routine everyday challenges will in general be bounded and regularly have restricted ramifications. The attributes of bounded problems like the rate problem that face the frank in this case are: I recognize what the problem is (rate problem in the case of poor frank) ; I realize what should be known such as I know  the high costs that increased because of moving to expensive facilities and reduction in the working hours. I know a conceivable arrangement and solutions such as recruit low expensive temporary staff in order to minimize the costs and support the rate to increase by 20% in the next year , Priorities are obvious, there are constrained ramifications or implications. The problem can be treated in detachment from different problems, low set of individuals are included as the frank as the operation manager is considered the person who responsible for treat this problem with the top managers in order to satisfy the 50 internal customers, and the timescale is constrained as they operation manager in this case must get solution in short term to stratify the internal customers . In associations where there are vigorous frameworks for routine work and built up guidelines and strategies for managing circumstances, problems may be bounded with few dangers and vulnerabilities or uncertainties encompassing them. At the opposite end of the range are unbounded issues. Here, there appear to be question marks all over. On the other side, there are many different features to unbounded problems are the inverse of those of bounded problem or the problem of poor frank: I don't know what the problem is, I don't have the foggiest idea what should be known, I don't have the foggiest idea what an answer may be, Priorities are raised doubt about, the issue can't be segregated from different issues . The suggestions are dubious, might be incredible, and are stressing. Various individuals are included, There is a more drawn out and unsure timescale.

I can say that the frank is skilled manager in dealing with this problem through collection the available information and make the accurate decision. Frank   knows all in all that the loss of work and the expanded space charges are adding to his problem yet he doesn't know of the general impacts of each.Checking on the model and the information, Frank notes quickly that the assignments classification is the hardest hit. This is the place the space energizes appear – and in the load dollars used to decide the load rate, Frank requests that his budget   analyst contrast genuine charges of the projects with the fixed budget   plan arranged toward the start of the year. The outcomes are spotty. Most projects are at or under budget   plan, with a couple of fundamentally under budget   plan and a couple essentially finished. Meeting with his two chiefs uncovers that the four projects over budget   plan have had increments in volumes that, rate shrewd, far surpass the expansion in expenses. A many of Frank's clients have recommended that he lessen staff as a method for diminishing costs. Notwithstanding, Frank definitely realizes this won't work. Amid the main portion of the monetary year, a few retirements and postings to different divisions empowered Frank to impact a 19 percent decrease in customary staff. He would not give any of the empty positions a chance to be filled and guided the directors and chiefs to make utilization of organization or brief work force. Therefore, there is no "abundance limit," in a manner of speaking. Diminishing staff would just have the entirely bothersome impact of making it difficult to play out the rest of crafted by the division. The solved state of the frank is minimizing the fixed expenses of the company through reducing the size of his division to be 15000 square feet instead of 20,000 square feet and this leaded to reduce about $225,000.00 from its fixed costs. There is problem face frank as the huge productivity that have been raised because of reduce the staff size, this will push the company to raise the price to cover the costs of the division. (Sundstrom,1990).

Q2

Executives create different decisions in order to develop the performance of the business in daily basis according to the collected information and the condition in the market. The managers can take many styles of decisions such as soft and routine decisions which are made as normal habit, for instance, whether to make communication with specific a supplier or some employees in the company. Occasionally, the decisions may impact on the whole firm. The kinds of decision person create as a manager will rely on his company and his phase of accountability. Routine decisions are considered as quickly decisions  that need to careful thinking, it assists to have a system to make comparison and deciding among alternatives. A decision must be tended to make some commitments through taking the different options that enable the company to solve their problems  or the problem of rate  that face the frank  through his processes  . I will explain the basic phases in decision-process to assist me select the best option from the different alternatives  in order to develop the performance and productivity  of the company that start from setting the targets through determining what I need to fulfill ; then putting the decision criteria through building realistic  standard for prosperous output , make certain  the standard is smart , specific , and  measurable with people who w2ill be impacted by these decisions ; I will compare the options or alternatives in the next phase through   evaluating every alternative against the criteria designed in the phase  2,  the next phase is  selecting the preferred option and creating the decision is depending  on the phase 3 , the last phase  is planning the implementation through preparing the action plan which is smart . A key component of any administrative procedure is the capacity to complete viable problem solving regularly through perfect power to make high competitive solution for the problems that face the company such as frank case. The terminology utilized is regularly in showing something negative; notwithstanding, this isn't generally the situation as an issue or problem can be taken emphatically. For instance, the desires for an association's clients may have changed and the issue confronted is the manner by which to build up its items or administrations in conquering any hindrance currently made in the market to fulfill their requirements. This may prompt expansion in an association's item or service, as on account of frank company. This procedure can likewise cause a negative impact, for example, unforeseen ramifications which had not been anticipated in the process in of taking care of the problem. (Wilson,1996).

 

Set objectives are considered the first step that I will execute as I’m manager. The most necessary item in putting targets is to be making certain that, if I determine the wanted outcomes, they really determine the condition. The query ‘What are we attempting to fulfill in this problem?’ is a helpful one to inquire! The chance, situation or problem which the decision is outlined to specify could require investigation. The most normal wellspring of oversights in the management decisions  is the accentuation on finding the correct answer as opposed to the correct inquiry. It is savvy, as well, to recognize which results are basic and which are alluring. It is additionally critical to state what might be unsuitable. Other individuals may help when setting targets – and in fact all through the procedure. The amount I include others will rely upon the significance of the decision to be made and the sensitivities of those included. The objectives in this case that must be considered  are many such as l adjust the rate in order to satisfy the customers , make many changes in the structure of the company , work on supporting the staff to increase the performance.

Put the decision criteria Here, I have to indicate the criteria, or necessities, for the ideal circumstance or result as obviously as would be prudent. Ensure the criteria are SMART. For instance, if the decision is between various scanners: Specific: 2,000 duplicates every day; two-sided replicating office Measurable: proof from suppliers and their clients Agreed: satisfactory to the individuals who must utilize it Realistic: can be purchased inside the monetary allowance Timed: can be conveyed inside seven days of requesting. The decision criteria that has been used by frank is reducing the fixed costs of the operation division to reduce  the total costs and this can enable to fix the rate problem. (Wilson,1996).

Compare the alternatives or options; I’m currently prepared to think about the decisions. Every decision ought to be evaluated against the goals I set in Step 1 and the decision criteria I set in Step 2. It ought to be a generally straightforward issue to dispose of decisions which neglect to coordinate the destinations and the criteria. While choosing alternatives, I should assess monetary ramifications and the level of hazard, obviously. It will hence for the most part be important to assess the expense and asset ramifications of various alternatives, for instance, extra staff expenses or reserve funds, extra gear. I ought to likewise recognize the primary vulnerabilities included, and know about the dimension of hazard that I’m taking. This should assist me with estimating the likelihood of the decision process result occurring as anticipated. Past experience can assist; generally a best supposition may get the job done. Explanatory or Analytical instruments are accessible for complex investigation yet these regularly require information which are once in a while accessible – and just a few decisions  can be supported along these lines. For example; frank make comparison between the various alternatives such as reduce the fixed costs, reduce the staff size , increase the productivity , raise the rate , reduce the production costs ,etc . (Wilson,1996).

Select the favored decision; this finishes Step 3, however is recorded independently to stress the correlation of alternatives! The decision ought to be conveyed to the individuals who need to think about it, including anybody influenced by it. In the event that there is any probability that the decision will be rejected, at that point it's ideal to know at this stage. Once more, matters are convoluted if difference has been predicted. No doubt that frank in this case has selected the hardest option through reducing the staff size and this negatively affected on the company and reduces the performance. The failure that faced frank has occurred because of low set of   scenarios that has been considered by him through solving as he focused only on the structure of financial variables through minimizing the staff size and reducing the size of the operation division to reduce the fixed costs and he must focus on the other problems that may affect  on his core problem .

Plan and control the execution of the decision relies on the idea of the alternatives and the circumstance they were to address, the usage might be as basic as requesting something or as mind boggling as arranging the execution of a task. The more intricate the decision, the more definite the usage plan should be. Ensure the arrangement is SMART. As the arrangement or plan is being executed, I should screen advance, utilizing the SMART goals, and I should survey that the general target is accomplished – regardless of whether the decision was viable. In the end , we can say that the success of frank is low because of  luck , timing and first-hand knowledge have not effective part in his solving strategy .

 

References

Change’, International Review of Industrial and Organizational Psychology, vol. 8, C.L. Cooper & I.T. Robertson (eds), John Wiley &Sons, New York.

Carr, C. 1992, ‘Planning Priorities for Empowered Teams’, Journal of Business Strategy, vol. 13, no. 5, p. 43,ISBN;391456-295

Dianna (2006) Teams: Teamwork and Teambuilding, Prentice Hall,New York.

Sundstrom, E., De Meuse, K.P. &Futrell, D. 1990, ‘Work Teams: Applications and Effectiveness’, American Psychologist, vol. 45, no. 2, pp. 120-133

Wageman, R., 1997, ‘Critical Success Factors for Creating Superb Self-managing Teams, Organizational Dynamics, vol. 26, no. 1, pp. 49-,ISBN: 63974-311288281

Wilson, F. 1996, ‘Great Teams Build Themselves’, Team Performance Management: An International Journal, vol. 2, No. 2, pp. 27-31.

B205B Corporate culture in McDonalds/Innovation and competitiveness in McDonalds

 Corporate culture in McDonalds

The culture of the business refers to the different beliefs and behaviors in an organization. This draws the loyalty of human resources towards their organization. Good culture is good for creating strong climate. This relies on shared visions, motivations, belonging matters in work, and even system of rewards in the business. McDonalds is a strong and famous name in the market. It cares about having strong and supportive climate of work. This is vital for keeping human resources motivated and so loyal to the company.

Having skilled and loyal labor in the company is vital for ensuring the brand reputation. This is vital for a huge company like McDonald. It owns about 25,000 of restaurants all over the world. Based on this, the company cares about its culture for keeping its stakeholders satisfied. This includes clients, human resources, suppliers, and even the managers. The culture plays a good role in supporting the supply chain of the business. Effective work climate is needed here for decreasing conflict issues. This is good for helping the company to support its success and competitiveness. The local labors are considered as a basic asset for the company, and so working under good climate is needed here for decreasing their turnover from the company.

The company cares about achieving a welcoming environment for its clients. This is applied in the project of McCafe. To provide comfort for clients, the company provides good services to its clients. In addition, the business provides clients with good quality of coffee at a value for the money price. Such good cultural practices help the company to achieve great relations with the clients in the market.

The culture plays a vital role in making the organizational change. The company depends on its loyal employees for having good training and learning courses. This is needed for the company to face the different risks in the market. The hard competition in the market enforces McDonald to make a kind of change. This includes the other fast food rivals copy the innovative business ideas of McDonald. Based on this, applying of strong learning courses is an important issue for the company here to achieve a kind of competitive gap with the workers.

McDonald Company gives special care to the habits and customs of its customers and clients. Accordingly, satisfying the people is a main goal for the company. This is needed for enhancing efficiency of McDonald brand name in different markets all over the world. The strong culture of the company depends on providing fast food products, and the new issues of organic food. Based on this, McDonald Company tries to satisfy clients with food varity, healthier eating, and reasonable prices. 

Innovation and competitiveness in McDonalds

McDonald Company is a great global brand in the market. It relies on innovation for enhancing the business rivalry and competitiveness. The hard competition is a main risk for any organization. Based on this, the business depends on developing its capabilities in order to support its rivalry, and so to hunt opportunities in the market.

The company is affected by the industry and technology context. Here, the company is suffering from hard competition in its markets. The rivals and competitors became a problem for McDonald. This matter of hard competition could be a big risk as this may lead to decrease the market share of the business. The rivals in the market started to copy the innovative ideas and innovative process of McDonald. In addition, the fast food outlets promoted new ideas in petrol stations and urban supermarkets. This matter of hard rivalry can make a decrease of the business market share.

McDonald is affected by the temporal context. This enforced the company to change its marketing strategy various times. This is vital for achieving survival. Developing strong marketing strategies is vital for McDonald for achieving differentiation and competitive advantage. Based on this McDonald performed strong efforts of adding value through innovation, and even the matter of decreasing routines in the business outlets. In addition, McDonald works hard for enhancing overall in-house experience.

Considering of the social context is vital issue for McDonald. This is considered as the basic context that affected McDonald business. Knowing about consumer tastes and lifestyle is vital for making strong marketing strategies in McDonald. This is important after the fall in Quick Service Restaurants sector. The consumers started to consume organic foods, white meats, and other healthy foods. All of these matters played a main role of change in McDonald. This was a vital issue for saving the brand image and awareness in all global markets.

McDonald depended on its innovative efficiency for finding effective solutions. This included the matter of offering fruits and sugar free drinks for children. In addition, the company issued an innovative idea of McChoice Menu which offers flexible combination of sandwiches, drinks, and others. Furthermore, the company issued the right prices for suitable products. The company selects the work in convenient locations to attract consumers. Application of Promotions is a vital issue to support McDonald brand. The company spends huge money on advertising of its offers more than the all rivals.

The issuance of McCafe Concept is one of the main innovative ideas for recalling brand awareness of McDonald. This relies on making strong market research to study the market and consumer needs. Here, the project of McCafe targets consumers who know coffee quality. Accordingly, the company provides them with high quality coffee. Such concept achieved strong success in areas of New Zealand, Australia, and even in Europe/. This new project cares about conditions of consumers as they are busy who are searching for quick break. This way of high efficiency in answering clients’ needs gives strong support to McDonald to stay strong in the market.

STMA-ACC302 Auditor Services

 

Q1

Assurance services are material services that auditors can make before agreeing to audit different final statements. They are representing professional services that can raise information quality for decision makers. Attestation is a kind of assurance services. Assurance services can be used for showing enhancement of information domain provided by certified public accountants. The independence is a feature that is found in auditor for such services' performing. I am responsible for making assessment for that engagements of assurance pre to accepting decisions. 

Attestation services are parts of the assurance services. They are styles of assurance services as reports are made by the CPA company related to the assertion reliabiltoy that another party is doing. These services can be found by many types including audit related to financial statements that are historical, attestation services in relation to IT and others which a wide subject matter domain can do as well as the control that is made over Financial Reporting.

 

Q2

Auditor independence is that independence which can be performed by an auditor with no impact from other different parties in the company and no control or interference is set by any part on it as these parties can't exist at any of the audit financial interest. There are two types of that independence which are independence in mental and independence in appearance. In dependence of mental is that mind state when view provision is allowed without any effects from anyone that may alter the judgment accuracy as this makes individuals to have conduct with professional skepticism, objectivity and integrity. There is a relation between independence in appearance to avert realities as well as the conditions of others that could have data that suspect compromising of the audit.

Independence has threats which are the affecting conditions on independence. According to AICPA, seven styles are found of threats which are advocacy, self-review, adverse interest, undue influence, management participations and financial self-interest. Examples are making the undue influence threat as a hazard that can affect the capability of an auditor for creating judgments that are objectives and independent. The company may in need for hiding that actual loss so as not to lead to investors' escape.

 

Q3

AICPA auditing standards  were applied  by  The PCAOB in April 16, 2003, being its temporary criterions . Ad respect should be followed by different auditors. They are adopted standards that are existing within auditing process. 

PCAOB Auditing Standards are considered as  auditing standards that are generally accepted and classified into three main categories; Standards of Fieldwork, Standards of Reporting and General Standards ,

General Standards

1. The audit must  be made through one person  or persons who maintain technical training and proficiency for being an efficient auditor.

2. There are some issues relevant to the assignment where the auditor should get an mental attitude independence.

 3. the auditors  are in need for professional care  during that  process of auditing  and  during preparing the auditor report. 

 Standards of Fieldwork

1. Complete overseen should be done if the process is having suitability coordinated. 2. Internal control should be realized and coordinated the audit so as to is to specify checks' nature, extent and timing

3. There should be suitable evidential issue for getting into making processes for example, inspection, confirmations, observation and inquiries for giving a rational and plausible   basis that a view point needs for considering  the financial statements under audit.

Standards of Reporting

1. The report should decide if the financial statements are prepared  with high relation to generally accepted accounting principles (GAAP).

2. The report should decide the conditions that these principles that systems couldn't observe in the current period related to the preceding period.

3. They need to have records' disclosures relevant to financial statements that are enough or if they are either contained within the report.

4.The report must include opinion showing that consider the financial statements, or that can be comprehensive, or that can assure the impact which is not shown by the view.

In case that it is difficult to show comprehensive opinion, it is necessary to determine the causes then. In all cases,  if  auditor's name  is connected to financial statements, there should be showing of the obvious-cut significance related to feature of the auditor's process  , if any, accountability rate should be taken by the auditor.

The ten generally accepted auditing standards are for sure, having a great part for auditors as they can guide auditors towards the means of auditing process making on bases that are scientific. This is because the ten standards are able to present a summary for auditors' accountabilities that other standards of PCAOB can present later. Fieldwork three standards can get close to audit organization and then collect evidence that is useful for making audits able to get financial statements' view. 

 

Q4

There is no doubt that the auditors bear the responsibility of material misstatement detection within the auditing process for the financial statements that are consolidated by the company through making the statements' values matched within the statements and then to make definition for the differences because this can make them able to recognize the different existed frauds and errors. They also have the responsibility of achieving communication on all its levels within teams through the engagement process. The auditors are also in responsibility for using the processional skepticism they maintain for making the assessment that is accurate and effective on the evidence of the audit during audit process as this can help in making the report via opinion declaring and then to make the decisions related to financial statements to suggest they have errors or fraud material misstatements. Based on that assumption, auditors are detectors for the material misstatements which are made by managers in Toshiba as they could make changes for the statements' values for purposes of stakeholders' delude as they achieved the goals and the profits that were desired. Auditors' role here can be an informative role as they give information about the material misstatements in relation to errors or fraud in the reports of the auditors, financial statements' presentation by Toshiba were not to be presented fairly in the different aspect.   

Q5

i.

Users or stakeholders of the company's financial statement who may include the suppliers, clients, investors, employees, the public or the government can ask for external organization independent report that is relevant to material misstatements in the firm so as to let them be able to make the right decisions in future time. They need to have exact data about all the issues relevant to the decisions related to the real financial situation of the company and that should be given to them as in accurate values for helping them make clear decisions such as the investors for example, and here auditors are responsible for issuing the reports and all Toshiba material misstatements in the financial statements of the company and not to present all values as here investors can be careful in taking steps and decisions after their assessments of the company's statements. Audits can give the stakeholders accurate information about the factual financial position of the company and this will help stakeholders have the optimal decisions according to that information.

 

ii.

Professional skepticism can work as having a material role in audit, this can also build an essential part of the auditor's skill group. It can make the professional judgment an easy process and in particular, the decisions related to the course of action, nature and timing of the decisions related to the audit process as this can reduce the hazard to an accepted level and can help in determination of the needed audit evidence or to tell if there should be more requirements to be fulfilled for assurance criterions including the administration judgments' assessment and the financial reporting system of the organization based on the yearly audit system and the conclusions design with connection to the maintained audit evidence.

Professional skepticism usage can help the audit efficacy and reduce potential of choosing audit that is not suitable or effective or even to misuse an audit that is suitable as a procedure or have misunderstanding for the outcomes and results of the audit.

 

 

 

B207B Corporate Social Responsibility that Improves Sustainability AOU

 

Corporate Social Responsibility has a main aim that is attracting business entities to consider their activities effect on the community members including the company's shareholders and other stakeholders. The triple bottom line explains that three goals exist for corporations to achieve which are the social, economic and environmental goals.

Corporate social responsibility is an approach that tries to improve the business sustainability through adding advantage to the society related to the environment, economy and society.  Managers focus on many aspects that are relevant to applying CSR including health, safety, people, education, rights, environmental issues, work environment and others that can help in improving the economic status in a community. Corporate social responsibility is the firm's responsibility towards the community and the society and this is base3d upon three types, the environmental responsibility, economic responsibility and social responsibility. Long term sustainability of the business organization depends on CSR and applying the three aspects related to it. The three aspects have to be applied in a balance that ensures reaching long term sustainability which helps the company strengthen its market business and reputation and profits as a result.  The triple bottom line that has been issued by John Elkington tells that the company should have three basic bottom lines which can include main three Ps which are profit, people and planet. (Elkington ,1998). Profit is the first in the bottom line and it is related to the company's revenues and profits, the second is people who are related within the company's stakeholders and the third is planet that account for the company’s activities related to its corporate social responsibility and how far the business is applying it throughout time.  

Kuwait Oil Company is one of the biggest oil companies in Kuwait and the Gulf area as it was established in Kuwait in 1934. The company has a plan for ensuring long term sustainability through its corporate social responsibility development. The company has many activities related to the three basic areas related to CSR and there are many proofs on that on the social, environmental and economic levels and this is included within the 2030 strategic plan of the company. KOC studies the present and future needs related to environmental and social matters in the society of Kuwait and then it tries to face any problems that are found in Kuwait in that regard.

Economic responsibility has a very important role that relates to the company's stakeholders which makes the company's management able to make more profits and to improve the business market position and ranking. In KOC 2030 strategy, the company has many items that can add too much to the economy including using petrol to improve the strategic value, improving the business performance to raise profits and minimize the flaring of the gas to reach one % instead of 17 % in the past which is a great responsibility that helps the company decrease its costs to improve the economy. On the environmental level, this is another responsibility as it helps the company share in pollution reduction in Kuwait. Efforts done by KOC are asserted by the world bank related to gas flaring as the company had set a specific plan for maximizing the home usage of gas and this helps in imprisoning the associated gas and stop gas wasting and emission which helps the environment greatly. The KOC annual report, among the most important goals of KOC, there is cost saving that uses both innovation and technology in different business areas to reduce costs and at the same time help in the heavy petrol reservoirs improvement and development. The company has also made good contracts for offshore drilling in order to support its financial position in the market. (KOC, 2017).

Environmental responsibility is the second type of responsibility applied by KOC management and it is based on main activities that help keep the environment clean and protect it from harmful elements in addition to keeping its resources healthy. The company also tends to manufacture in a way that ensures health and safety related to the environment with low pollution levels and less costs of production in order to reach competitiveness of the company in the global market. KOC policy is based on using resources wisely and reducing wasting materials that may be additional cost to the business. The company tended to build Ahmadi Hospital in 1960 to be an opportunity for offering medical care for the company's workers and others working in the oil production field and their families. The company has other services that include public campaigns, training courses, students' assistance and holding medical conferences that are important for people's health and medication. KOC is a very important organization that is interested in blood donation and the company has a home agenda that puts it on its most important activities. Another area of interest considered by the company is safety which is ensured through many ways such as applying international safing measures as ISO 14001-2004 and the Occupational Health and Safety Management 18001-2007 certificate. The company also helped in reducing the problem of traffic through supporting the Traffic General Directorate degree and help find innovative solutions for traffic problems. The company was also regarded as the first oil company that added in the marine colony improvement in 2007. The company helped in gas reduction and it also helped in waste water disposing which helps in the environment protection. (KOC, 2017)      

Social responsibility is the third area of the company's CSR as managers of the company puts the issues of the Kuwait society in consideration and tries to match the needs of that society regarding issues of health, human well-being, respect and cleanliness and other areas. In KOC, the company tries to invest in its human resources and workers as being member of the Kuwaiti society and community. Labor force of the company are considered main target of interest and respect and the company spends much on their development and support. The company has cooperation programs with international universities that provide different training sessions for workers of the company and provide Master and PHD opportunities for the company's engineers in the field of Petroleum and engineering study. The company help in presenting many employment opportunities for people of the Kuwaiti society which reduces unemployment problems and satisfy the social need of employment, this helps the society feel more satisfied about the company and its CSR activities. (KOC, 2017)    

References

Books

Carroll, Archie, B. and Schwartz, Mark, S. (2003). “Corporate Social Responsibility: A ThreeDomain Approach”. Business Ethics Quarterly, Vol. 13, No. 4, pp. 503-530

Crowther, D. (2008). 'Corporate Social Responsibility.' Bookboon. P120-140.

Rasche, A. Morsing, M. Moon, J. (2017). 'Corporate Social Responsibility.' Cambridge University Press.

Website

KOC, 2017, annual report of KOC , visited in 9-3-2019, available  ;

https://www.kockw.com/sites/EN/Annual%20Reports/2017-2018%20English.pdf

KOC, 2016, CSR of KOC , visited in 9-3-2019, available  ;

https://www.kockw.com/sites/EN/Other%20Publications/Corporate%20Social%20Responsibility.pdf

KOC, 2019, Corporate Social Responsibility, visited in 9-3-2019, available  ;

https://www.kockw.com/sites/EN/Pages/We%20Care/Social%20Responsibility/Introduction.aspx

KOC, 2019,World Bank Praises KOC’s Gas Flaring Reduction Efforts, visited in 9-3-2019, available  ;

https://www.kockw.com/sites/EN/Pages/Media%20Center/News%20And%20Events/WorldBankPraisesKOC%E2%80%99sGasFlaringReductionEfforts.aspx

E-library

Baden, D. (2016). ' A reconstruction of Carroll’s pyramid of corporate social responsibility for the 21st century.' International Journal of Corporate Social Responsibility20161:8

Cavalic, A. (2017). ' The pyramid of corporate social responsibility in the companies of Bosnia and Herzegovina.' 5th International Scientific Conference “Economy of Integration” – ICEI 2017, At Tuzla