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ACC - Bakery Case




Question;At a recent meeting, the marketing manager of Bakery Limited, Lotus Wong,indicated that the company should expand its product offering, otherwise there may be no future for the company. Lotus believes that there are untapped markets for gourmet pasties and quiches. The General Manager is uncertain and reluctant to invest in new products. However, Lotus suggested that it is these new items that the customers are asking for, and so it makes sense from astrategic point of view to develop these products. The General Manager isunconvinced and doubtful and has the following concerns:a. Bakery profitability.b. Cash and liquidity issues.c. New strategies and new products are a risky investmen t.Bakery Li mited operates a series of bakeries in Sydney that specializes insupplying a range of cakes and bread to coffee shops, restaurants and bistros.Sales levels have been declining is the last 2 years. Marketing research indicatesthat the styles of cakes are old?.fashioned and customers are resisting buyingthese types of cakes. Customers want tasty and high-quality innovative andnutritional cakes. However, customers enjoy the specialist bread make by thebakery.Lo?us understands why the General Manager is resisting her plea to be moreinnova?ive with products as Bakery Li mited has been producing the same line ofcakes 20 years. Lotus is aware that there has never been any formal planningundertaken within the company, or consideration of 0? ectives or strategies.Please see the Bakery Case and answer the following question:1. What are the options?The general manager has two options. One is, according to the marketing manager?s suggestion, investing in new products. The other is doing nothing and keep making the same productions like what they did in the past 20 years.2. How can management accounting systems assist in motivating owners, managers, employees, etc.3. How can management accountings systems assist and support in implementing procedures, organisational strategies, planning systems, and performance measures.4. What reports are required?5. Do you need daily, weekly,or monthly reports?6. What type of information is required?7. Financial data?8. Non-financial data?9. Ratio analysis?


Paper#41895 | Written in 18-Jul-2015

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