MBS669 Management accounting ASSIGNMENT Five-Star company manufactures a line of electric fans. It has experienced sales growth over the last 7 years. The company has implemented several automated...

MANAGEMENT ACCOUNTING
Table of Contents
Brief introduction    2
Background    2
Findings    2
Analysis and recommendations    5
References    7
Brief introduction
The purpose of the task is to understand how the COVID-19 affected the company. The analysis will help to understand what areas the company should work on. It will also help to highlight how the teams can contribute to the cost and recovery analysis. The team should also highlight the elements of the product value chain for the electric fans that can be changed and ensure that it is improved and work for the post COVID-19 era. It should also understand whether the management account information is integral to the company and whether this need is due to the COVID-19 lockdown.
Background
Five-Star Company is a company that manufactures a line of electric fans. The company has experienced a growth of sales over the last 7 years. The company like most other companies had a dislocation of its operations due to the COVID-19 pandemic. The company has issues with their production disruption. Owing to which they had lower profit margins and saw a decline in sales. The company has recently automated several systems[footnoteRef:1]. The systems were to help automate the assembly plan. It had also employed sales, technical specialists, cost managers, production managers and engineering managers. The analysis will help to improve the company. [1: Alfonso, Viviana, Codruta Boar, Jon Frost, Leonardo Gambacorta, and Jing Liu. "E-commerce in the pandemic and beyond." BIS Bulletin 36 (2021): 12.
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The company needs to understand the business strategies that they have to employ to go back to their growth. The company has experienced a steady growth in the past seven years. This pandemic has seen a decrease in the sales growth so it is important to understand the management account information. Management Account Information enables the organisation to make well informed business decisions[footnoteRef:2]. The supply chain should also be changed in order to make the process more efficient and increase the value the different stages add to the organisation. This is important as the organisation needs to re-launch in a way that ensures the company success. [2: Dannenberg, Peter, Martina Fuchs, Tim Riedler, and Cathrin Wiedemann. "Digital transition by COVID‐19 pandemic? The German food online retail." Tijdschrift voor economische en sociale geografie 111, no. 3 (2020): 543-560.
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Findings
First focus of the research analysis is the sales. The sales strategy in place should be evaluated in context with the post pandemic era. The ways to understand the business strategy currently employed and come up with a new strategy will need the following- reevaluate the offering, communicate with customers, start to make a plan, evaluate the market strategy and understand the online presence. The pandemic has reshaped how the consumers shop and it also has reshaped how the production and sales occurs. The strategy that is currently employed should be evaluated according to the COVID pandemic changes that occurred[footnoteRef:3]. The first analysis would be to understand if the product is still relevant. Electric fans are a necessity in many countries so that is not a problem. The product is still relevant[footnoteRef:4]. Whether the business has an online presence, the pandemic has made in-person sales to be non-existent. The regular lockdowns across the world, it is no longer possible to have manual sales. The ecommerce space is starting to dominate and the company and therefore, in order to stay relevant will have to be in the same space. [3: Dannenberg, Peter, Martina Fuchs, Tim Riedler, and Cathrin Wiedemann. "Digital transition by COVID‐19 pandemic? The German food online retail." Tijdschrift voor economische en sociale geografie 111, no. 3 (2020): 543-560.
] [4: Abdullah, Mokhtar, Nor Azilah Husin, and Ameer Haider. "Development of post-pandemic COVID19 higher education resilience framework in Malaysia." Archives of Business Review–Vol 8, no. 5 (2020).
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Services should be changed in order to accommodate the new way the sales process occurs. Consumers need to know what the process is and how the company is going to change. This constant communication with the company will help to bring more clarity to the strategy and how to improve it. The customers should be the first priority. Their expectations and their needs should be kept in check. This can form the basis of the change that strategy will require and how the delivery and production will act to ensure the consumers are satisfied. Planning should also be done in order to accommodate the change the analysis will bring. The plan should have multiple...