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3.Beach Foods (Beach) is a family-owned business which has grown strongly over its 100 year history. The objective of the business is to maximise the family’s wealth through their shareholdings. Beach has three divisions. It manufactures a variety of foods in two of the divisions: Beach Baby Foods (Baby) and Beach Chocolate Foods (Chocolate). Each of these divisions knows its own market and sets prices accordingly. The third division (R&D)researches new products on the instructions of the other divisions and is considered to be vital to the survival and growth of Beach. The board of Beach has been considering the impact of using a divisional structure and has come to you as a performance management consultant to ask for your advice. There is disagreement at board level about the correct choice of divisional performance measure to be used in the two manufacturing divisions. Currently, the business uses EVA^TM but two directors have been questioning its value,complaining that it is complicated to understand. These directors have been promoting the use of either residual income (RI) or return on investment (ROI) as alternatives. The board wants to use the same measure for each division.As well as qualitatively evaluating these different measures, the board needs an assessment of the impact of a change in performance measure on their perception of these divisions’ performance. Therefore, as an example, they require you to calculate and discuss the use of ROI and RI at Baby division, given the data in Appendix 1. The chief executive officer (CEO) of Beach has engaged a business analyst to perform a study of the portfolio of manufacturing businesses which make up Beach. This has been completed in Appendix 2. The CEO wants your comments (based on the categorisation given in Appendix 2) on how this work will impact on the performance management of the divisions. Specifically, the CEO has asked for your recommendations on how to control each division; that is, whether each division should be treated as a cost/profit/investment centre and also, the appropriate management style to use for handling staff in each division. The CEO commented to you: ‘I have heard of different approaches to the use of budget information in assessing performance: budget-constrained,profit-conscious and also a non-accounting style. I need to know how these approaches might apply to each division given your other comments.’ All of this work has been partly prompted by complaints from the divisional managers. The Chocolate divisional managers complain that they had to wait for a year to get approval to upgrade their main production line. This production line upgrade has reduced wastage and boosted Chocolate’s profit margin by 10 percentage points. The Baby division has been very successful in using the ideas of the R&D division, although Baby’s managers do complain about the recharging of R&D costs to their division. Head office managers are worried about Chocolate as it has seemed to be drifting recently with a lack of strategic direction. Chocolate’s managers are considered to be good but possibly not sufficiently focused on what benefits Beach as a whole.
Required:(a) Assess the use of EVA ^TM as a divisional performance measure for the manufacturing divisions at Beach.(8 marks)

答案： Economic value added (EVA^TM) as a divisional perf...

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2.Forion Electronics (Forion) manufactures a range of electronic goods. Its business has grown rapidly over the last ten years and is now complex and international. Forion manufactures over 100 different products, selling into 25 different countries. There is a supplier base of over 200 companies from which Forion sources. As the business has become more complex, the board has found it difficult to pull together all the information that they require in order to make decisions. The current information systems are developed in-house and are based in the functional departments (such as purchasing, manufacturing, warehousing and delivery, selling and marketing). The organisation uses the financial system as a means of bringing together information for an overview of corporate performance. There have been a number of examples of problems encountered with information in Forion: – there are inefficiencies arising from ordering the wrong amount of subcomponents; – there are often stock-outs or obsolescence of unsold goods in the warehouses, although the marketing department prepares good sales forecasts; and – sometimes, there are insufficient delivery vehicles available to meet customer deadlines. The board of Forion believes the problems arise from poor information sharing within the company. They are considering the purchase of an enterprise resource planning system (ERPS) to be the single information system for the whole organisation. Also, Forion is planning to launch a smartphone. However, in order to make it competitive they need to have high-visibility, durable screens. As the cost of screen development is considerable, it has been decided to form a strategic alliance with a well-known screen manufacturer to provide this key component for the new smartphone. Bon Accord Screens (BAS) has been chosen as the strategic ally, as they have a strong reputation for their quality of manufacturing and new product development. BAS has been trying to break into the smartphone market for several years. The alliance agreement has stipulated three critical areas of performance for BAS’ supply to Forion: 1. quality of manufacturing, measured by fault rates of screens supplied being within agreed tolerances (so that they fit Forion’s phone-bodies); 2. time of delivery, measured by the number of times a shipment is more than one day overdue; and 3. the ability to provide technical upgrades to the screens as the market demands. The service level agreement (SLA) will be based on these three points and there will be financial penalties built into the agreement if BAS fails to meet these. Required:(a) Discuss the integration of information systems in an ERPS and how the ERPS may impact on performance management issues at Forion. (10 marks)

答案： Enterprise Resource Planning Systems (ERPS) are software sys...

3.Beach Foods (Beach) is a family-owned business which has grown strongly over its 100 year history. The objective of the business is to maximise the family’s wealth through their shareholdings. Beach has three divisions. It manufactures a variety of foods in two of the divisions: Beach Baby Foods (Baby) and Beach Chocolate Foods (Chocolate). Each of these divisions knows its own market and sets prices accordingly. The third division (R&D)researches new products on the instructions of the other divisions and is considered to be vital to the survival and growth of Beach. The board of Beach has been considering the impact of using a divisional structure and has come to you as a performance management consultant to ask for your advice. There is disagreement at board level about the correct choice of divisional performance measure to be used in the two manufacturing divisions. Currently, the business uses EVA^TM but two directors have been questioning its value,complaining that it is complicated to understand. These directors have been promoting the use of either residual income (RI) or return on investment (ROI) as alternatives. The board wants to use the same measure for each division.As well as qualitatively evaluating these different measures, the board needs an assessment of the impact of a change in performance measure on their perception of these divisions’ performance. Therefore, as an example, they require you to calculate and discuss the use of ROI and RI at Baby division, given the data in Appendix 1. The chief executive officer (CEO) of Beach has engaged a business analyst to perform a study of the portfolio of manufacturing businesses which make up Beach. This has been completed in Appendix 2. The CEO wants your comments (based on the categorisation given in Appendix 2) on how this work will impact on the performance management of the divisions. Specifically, the CEO has asked for your recommendations on how to control each division; that is, whether each division should be treated as a cost/profit/investment centre and also, the appropriate management style to use for handling staff in each division. The CEO commented to you: ‘I have heard of different approaches to the use of budget information in assessing performance: budget-constrained,profit-conscious and also a non-accounting style. I need to know how these approaches might apply to each division given your other comments.’ All of this work has been partly prompted by complaints from the divisional managers. The Chocolate divisional managers complain that they had to wait for a year to get approval to upgrade their main production line. This production line upgrade has reduced wastage and boosted Chocolate’s profit margin by 10 percentage points. The Baby division has been very successful in using the ideas of the R&D division, although Baby’s managers do complain about the recharging of R&D costs to their division. Head office managers are worried about Chocolate as it has seemed to be drifting recently with a lack of strategic direction. Chocolate’s managers are considered to be good but possibly not sufficiently focused on what benefits Beach as a whole.
Required:(a) Assess the use of EVA ^TM as a divisional performance measure for the manufacturing divisions at Beach.(8 marks)

答案： Economic value added (EVA^TM) as a divisional perf...

2.Victoria-Yeeland Logistics (Victoria) is a logistics support business, which operates a fleet of lorries to deliver packages of goods on behalf of its customers within the country of Yeeland. Victoria collects packages from its customers’manufacturing sites or from the customers’ port of importation and delivers to the final user of the goods. The lorries are run and maintained from a set of depots spread throughout Yeeland. The overall objective of Victoria is to maximise shareholder wealth. The delivery business in Yeeland is dominated by two international companies and one other domestic business and profit margins are extremely tight. The market is saturated by these large operators and a number of smaller operators. The cost base of Victoria is dominated by staff and fuel, with fuel prices being highly volatile in the last few years. In order to improve performance measurement and management at Victoria, the chief financial officer (CFO) plans to use the balanced scorecard (BSC). However, she has been pulled away from this project in order to deal with an issue with refinancing the business’ principal lending facility. The CFO has already identified some suitable metrics but needs you, as her assistant, to complete her work and address any potential questions which might arise when she makes her presentation on the BSC to the board. The CFO has completed the identification of metrics for three of the perspectives (Appendix 1) but has yet to complete the work on the metrics for the customer perspective. This should be done using the data given in Appendix 2. Additionally, two issues have arisen in the reward management system at Victoria, one in relation to senior management and the other for operational managers. Currently, senior management gets a fixed salary supplemented by an annual bonus awarded by the board. Shareholders have been complaining that these bonuses are not suitable.The operational managers also get bonuses based on their performance as assessed by their management superiors.The operational managers are unhappy with the system. In order to address this, it has been suggested that they should be involved in bonus target setting as otherwise there is a sense of demotivation from such a system. The CFO wants an evaluation of this system of rewards in light of the introduction of the BSC and best practice.
Required:(a) Discuss how Victoria’s success in the customer perspective may impact on the metrics given in the financial perspective. (5 marks)

答案： The success factors in the customer perspective will drive i...

2.Forion Electronics (Forion) manufactures a range of electronic goods. Its business has grown rapidly over the last ten years and is now complex and international. Forion manufactures over 100 different products, selling into 25 different countries. There is a supplier base of over 200 companies from which Forion sources. As the business has become more complex, the board has found it difficult to pull together all the information that they require in order to make decisions. The current information systems are developed in-house and are based in the functional departments (such as purchasing, manufacturing, warehousing and delivery, selling and marketing). The organisation uses the financial system as a means of bringing together information for an overview of corporate performance. There have been a number of examples of problems encountered with information in Forion: – there are inefficiencies arising from ordering the wrong amount of subcomponents; – there are often stock-outs or obsolescence of unsold goods in the warehouses, although the marketing department prepares good sales forecasts; and – sometimes, there are insufficient delivery vehicles available to meet customer deadlines. The board of Forion believes the problems arise from poor information sharing within the company. They are considering the purchase of an enterprise resource planning system (ERPS) to be the single information system for the whole organisation. Also, Forion is planning to launch a smartphone. However, in order to make it competitive they need to have high-visibility, durable screens. As the cost of screen development is considerable, it has been decided to form a strategic alliance with a well-known screen manufacturer to provide this key component for the new smartphone. Bon Accord Screens (BAS) has been chosen as the strategic ally, as they have a strong reputation for their quality of manufacturing and new product development. BAS has been trying to break into the smartphone market for several years. The alliance agreement has stipulated three critical areas of performance for BAS’ supply to Forion: 1. quality of manufacturing, measured by fault rates of screens supplied being within agreed tolerances (so that they fit Forion’s phone-bodies); 2. time of delivery, measured by the number of times a shipment is more than one day overdue; and 3. the ability to provide technical upgrades to the screens as the market demands. The service level agreement (SLA) will be based on these three points and there will be financial penalties built into the agreement if BAS fails to meet these. Required:(b) Evaluate, from Forion’s viewpoint, the usefulness of the three critical areas in the alliance agreement for measuring the performance of BAS. (8 marks)

答案： Considering the points raised overall, it is surprising that...

3.Beach Foods (Beach) is a family-owned business which has grown strongly over its 100 year history. The objective of the business is to maximise the family’s wealth through their shareholdings. Beach has three divisions. It manufactures a variety of foods in two of the divisions: Beach Baby Foods (Baby) and Beach Chocolate Foods (Chocolate). Each of these divisions knows its own market and sets prices accordingly. The third division (R&D)researches new products on the instructions of the other divisions and is considered to be vital to the survival and growth of Beach. The board of Beach has been considering the impact of using a divisional structure and has come to you as a performance management consultant to ask for your advice. There is disagreement at board level about the correct choice of divisional performance measure to be used in the two manufacturing divisions. Currently, the business uses EVA^TM but two directors have been questioning its value,complaining that it is complicated to understand. These directors have been promoting the use of either residual income (RI) or return on investment (ROI) as alternatives. The board wants to use the same measure for each division.As well as qualitatively evaluating these different measures, the board needs an assessment of the impact of a change in performance measure on their perception of these divisions’ performance. Therefore, as an example, they require you to calculate and discuss the use of ROI and RI at Baby division, given the data in Appendix 1. The chief executive officer (CEO) of Beach has engaged a business analyst to perform a study of the portfolio of manufacturing businesses which make up Beach. This has been completed in Appendix 2. The CEO wants your comments (based on the categorisation given in Appendix 2) on how this work will impact on the performance management of the divisions. Specifically, the CEO has asked for your recommendations on how to control each division; that is, whether each division should be treated as a cost/profit/investment centre and also, the appropriate management style to use for handling staff in each division. The CEO commented to you: ‘I have heard of different approaches to the use of budget information in assessing performance: budget-constrained,profit-conscious and also a non-accounting style. I need to know how these approaches might apply to each division given your other comments.’ All of this work has been partly prompted by complaints from the divisional managers. The Chocolate divisional managers complain that they had to wait for a year to get approval to upgrade their main production line. This production line upgrade has reduced wastage and boosted Chocolate’s profit margin by 10 percentage points. The Baby division has been very successful in using the ideas of the R&D division, although Baby’s managers do complain about the recharging of R&D costs to their division. Head office managers are worried about Chocolate as it has seemed to be drifting recently with a lack of strategic direction. Chocolate’s managers are considered to be good but possibly not sufficiently focused on what benefits Beach as a whole.
Required:(b) Using Appendix 1, calculate the ROI and RI for Baby and assess the impact of the assumptions made when calculating these metrics on the evaluation of the performance of this division and its management.(7 marks)

答案：
The key assumption in the calculation of both metrics ...

2.Victoria-Yeeland Logistics (Victoria) is a logistics support business, which operates a fleet of lorries to deliver packages of goods on behalf of its customers within the country of Yeeland. Victoria collects packages from its customers’manufacturing sites or from the customers’ port of importation and delivers to the final user of the goods. The lorries are run and maintained from a set of depots spread throughout Yeeland. The overall objective of Victoria is to maximise shareholder wealth. The delivery business in Yeeland is dominated by two international companies and one other domestic business and profit margins are extremely tight. The market is saturated by these large operators and a number of smaller operators. The cost base of Victoria is dominated by staff and fuel, with fuel prices being highly volatile in the last few years. In order to improve performance measurement and management at Victoria, the chief financial officer (CFO) plans to use the balanced scorecard (BSC). However, she has been pulled away from this project in order to deal with an issue with refinancing the business’ principal lending facility. The CFO has already identified some suitable metrics but needs you, as her assistant, to complete her work and address any potential questions which might arise when she makes her presentation on the BSC to the board. The CFO has completed the identification of metrics for three of the perspectives (Appendix 1) but has yet to complete the work on the metrics for the customer perspective. This should be done using the data given in Appendix 2. Additionally, two issues have arisen in the reward management system at Victoria, one in relation to senior management and the other for operational managers. Currently, senior management gets a fixed salary supplemented by an annual bonus awarded by the board. Shareholders have been complaining that these bonuses are not suitable.The operational managers also get bonuses based on their performance as assessed by their management superiors.The operational managers are unhappy with the system. In order to address this, it has been suggested that they should be involved in bonus target setting as otherwise there is a sense of demotivation from such a system. The CFO wants an evaluation of this system of rewards in light of the introduction of the BSC and best practice.
Required:(b) Recommend, with justification, and calculate a suitable performance metric for each customer perspective success factor. Comment on the problems of using customer complaints to measure whether packages are delivered safely and on time. (11 marks)

答案： Ability to meet customers’ transport needsThis is a measure ...

2.Forion Electronics (Forion) manufactures a range of electronic goods. Its business has grown rapidly over the last ten years and is now complex and international. Forion manufactures over 100 different products, selling into 25 different countries. There is a supplier base of over 200 companies from which Forion sources. As the business has become more complex, the board has found it difficult to pull together all the information that they require in order to make decisions. The current information systems are developed in-house and are based in the functional departments (such as purchasing, manufacturing, warehousing and delivery, selling and marketing). The organisation uses the financial system as a means of bringing together information for an overview of corporate performance. There have been a number of examples of problems encountered with information in Forion: – there are inefficiencies arising from ordering the wrong amount of subcomponents; – there are often stock-outs or obsolescence of unsold goods in the warehouses, although the marketing department prepares good sales forecasts; and – sometimes, there are insufficient delivery vehicles available to meet customer deadlines. The board of Forion believes the problems arise from poor information sharing within the company. They are considering the purchase of an enterprise resource planning system (ERPS) to be the single information system for the whole organisation. Also, Forion is planning to launch a smartphone. However, in order to make it competitive they need to have high-visibility, durable screens. As the cost of screen development is considerable, it has been decided to form a strategic alliance with a well-known screen manufacturer to provide this key component for the new smartphone. Bon Accord Screens (BAS) has been chosen as the strategic ally, as they have a strong reputation for their quality of manufacturing and new product development. BAS has been trying to break into the smartphone market for several years. The alliance agreement has stipulated three critical areas of performance for BAS’ supply to Forion: 1. quality of manufacturing, measured by fault rates of screens supplied being within agreed tolerances (so that they fit Forion’s phone-bodies); 2. time of delivery, measured by the number of times a shipment is more than one day overdue; and 3. the ability to provide technical upgrades to the screens as the market demands. The service level agreement (SLA) will be based on these three points and there will be financial penalties built into the agreement if BAS fails to meet these. Required:(c) Evaluate the relative reliability of financial and non-financial data from internal and external sources in the context of the alliance between Forion and BAS. (7 marks)

答案： Financial and non-financial dataFinancial data has the advan...

3.Beach Foods (Beach) is a family-owned business which has grown strongly over its 100 year history. The objective of the business is to maximise the family’s wealth through their shareholdings. Beach has three divisions. It manufactures a variety of foods in two of the divisions: Beach Baby Foods (Baby) and Beach Chocolate Foods (Chocolate). Each of these divisions knows its own market and sets prices accordingly. The third division (R&D)researches new products on the instructions of the other divisions and is considered to be vital to the survival and growth of Beach. The board of Beach has been considering the impact of using a divisional structure and has come to you as a performance management consultant to ask for your advice. There is disagreement at board level about the correct choice of divisional performance measure to be used in the two manufacturing divisions. Currently, the business uses EVA^TM but two directors have been questioning its value,complaining that it is complicated to understand. These directors have been promoting the use of either residual income (RI) or return on investment (ROI) as alternatives. The board wants to use the same measure for each division.As well as qualitatively evaluating these different measures, the board needs an assessment of the impact of a change in performance measure on their perception of these divisions’ performance. Therefore, as an example, they require you to calculate and discuss the use of ROI and RI at Baby division, given the data in Appendix 1. The chief executive officer (CEO) of Beach has engaged a business analyst to perform a study of the portfolio of manufacturing businesses which make up Beach. This has been completed in Appendix 2. The CEO wants your comments (based on the categorisation given in Appendix 2) on how this work will impact on the performance management of the divisions. Specifically, the CEO has asked for your recommendations on how to control each division; that is, whether each division should be treated as a cost/profit/investment centre and also, the appropriate management style to use for handling staff in each division. The CEO commented to you: ‘I have heard of different approaches to the use of budget information in assessing performance: budget-constrained,profit-conscious and also a non-accounting style. I need to know how these approaches might apply to each division given your other comments.’ All of this work has been partly prompted by complaints from the divisional managers. The Chocolate divisional managers complain that they had to wait for a year to get approval to upgrade their main production line. This production line upgrade has reduced wastage and boosted Chocolate’s profit margin by 10 percentage points. The Baby division has been very successful in using the ideas of the R&D division, although Baby’s managers do complain about the recharging of R&D costs to their division. Head office managers are worried about Chocolate as it has seemed to be drifting recently with a lack of strategic direction. Chocolate’s managers are considered to be good but possibly not sufficiently focused on what benefits Beach as a whole.
Required:(c) Provide justified recommendations for each division’s control and management style as requested by the CEO. (10 marks)

答案： Baby divisionAs the star of the Beach portfolio and with new...

2.Victoria-Yeeland Logistics (Victoria) is a logistics support business, which operates a fleet of lorries to deliver packages of goods on behalf of its customers within the country of Yeeland. Victoria collects packages from its customers’manufacturing sites or from the customers’ port of importation and delivers to the final user of the goods. The lorries are run and maintained from a set of depots spread throughout Yeeland. The overall objective of Victoria is to maximise shareholder wealth. The delivery business in Yeeland is dominated by two international companies and one other domestic business and profit margins are extremely tight. The market is saturated by these large operators and a number of smaller operators. The cost base of Victoria is dominated by staff and fuel, with fuel prices being highly volatile in the last few years. In order to improve performance measurement and management at Victoria, the chief financial officer (CFO) plans to use the balanced scorecard (BSC). However, she has been pulled away from this project in order to deal with an issue with refinancing the business’ principal lending facility. The CFO has already identified some suitable metrics but needs you, as her assistant, to complete her work and address any potential questions which might arise when she makes her presentation on the BSC to the board. The CFO has completed the identification of metrics for three of the perspectives (Appendix 1) but has yet to complete the work on the metrics for the customer perspective. This should be done using the data given in Appendix 2. Additionally, two issues have arisen in the reward management system at Victoria, one in relation to senior management and the other for operational managers. Currently, senior management gets a fixed salary supplemented by an annual bonus awarded by the board. Shareholders have been complaining that these bonuses are not suitable.The operational managers also get bonuses based on their performance as assessed by their management superiors.The operational managers are unhappy with the system. In order to address this, it has been suggested that they should be involved in bonus target setting as otherwise there is a sense of demotivation from such a system. The CFO wants an evaluation of this system of rewards in light of the introduction of the BSC and best practice.
Required:(c) Advise Victoria on the reward management issues outlined by the CFO. (9 marks)

答案： The senior management rewards system appears open to manipul...