HAMG 2330 Chapter Notes - Chapter 3: Strategic Planning, Procrastination

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scarletcod466

22 Aug 2017

School

ACC

Department

Hospitality Admin/Mgt

Course

HAMG 2330

Professor

Garner, B

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Document Summary

1. compare and contrast strategic planning to day-by-day planning. Strategic planning moves through various levels of channels such as day-to-day planning by supervisors at operating levels that plans to get the work done in order to achieve those long-goals made by top management. Planning is a special form of decision making: it makes decisions about future courses of action. Therefore, the steps in making a good plan resemble those in making a good decision: defining the goal, purpose or problem is accomplished by formulating the objectives to be achieved in a set time frame. These goals can very between stragetic and day-by-day planning. Collecting and evaluating revelant data is the second step in which involves gathering neccassary data in order to predict the outcome of a plan. The third step is to devlop alternate course of actions in order to still achieve the set goal.

Related Questions

Prepare a Project Proposal that includes the nature of the project, the sources of information you plan to use, and the most important concepts and techniques to be applied.

The outline topics should include the following:

A brief summary of the company you have chosen, such as business lines, and its industry;
Information sources (e.g. industry studies, market share reports, financial statements, etc.);

The analyses you will include in your study. This will likely require a summary review of the material in later sections of the course, such as competitor analysis;

If you have access to, and permission to use, internal company documents, please discuss so in the outline.

You are required to complete a course project that reveals mastery in application of the strategic managerial accounting and performance management concepts emphasised in the course. This involves reporting on a specific organisation within an industry, analysing the firmâs competitive position (e.g., market position, cost competitiveness, market power, innovation, SWOT, etc.), its managerial accounting approach, and the non-financial performance metrics should be used in monitoring firm performance, all aligned with value creation for the chosen firm.

This project should be a formal business report that covers all elements of the strategic management process: mission statement, strategic goals, strategic objectives, actionable plans (if available, analyse the specific budget planning process used by the Firm; if not, search for relevant articles for the subject company and recommend a process that you believe is appropriate for the company), and performance monitoring processes employed by the Firm, including its board of directors. These processes and strategies are to be supported with managerial accounting and performance management concepts.

In selecting a company to analyze, first focus on information availability. If you work for the company, ensure that you can obtain the information required to do a proper job on this assignment. If you choose a company you do not work for, begin your search among larger public companies with ample information available. Company websites are often the best place to begin, in particular the investor relations site. Look for annual reports, quarterly reports, press releases, white papers, and other sources of information (e.g., public filings, such as for the U.S. Securities & Exchange Commission at http://www.sec.gov./

Your tasks are to:

Â· Briefly describe the business of the Firm (i.e. industry segments, geographic service area, market position, and size as measured by revenues, employees, and market capitalisation). Describe the mission statement and strategic objectives of the Firm.
Â· Analyse the behaviour of expenses of the business, distinguishing between variable costs and fixed costs (or estimates thereof), describe the relationships between sales volume, costs, and profit. Estimate a break-even point for the Firm and support with relevant calculations and discussion.

Â· Discuss the level of the Firmâs operating leverage.

Â· Assess the budgeting process and procedures for the Firm, bearing in mind the context of the business and its characteristics. Identify methods employed for budgeting, managerial reporting, and control, and make recommendations for improvement. Justify your recommendations.

Â· Summarise the Firmâs performance over the past five years in terms of sales and earnings growth, return on equity, return for shareholders, and non-financial performance measures (e.g. market share, recognition, customer satisfaction).

Â· Analyse the fixed capital needs (i.e. capital expenditures) of the company, and discuss significant capital projects, how they fit with the strategic goals of the Firm. Evaluate risks associated with major capital projects and suggest risk mitigation strategies. Justify your suggestions.

Â· Briefly profile two or three key competitors and analyse the basis for competition (e.g., is it cost? Innovation? Capital intensity? Branding?). Compare the Firm with these key competitors on key performance metrics (e.g., revenue growth, profit margins, return on equity, financial leverage, receivables turnover, payables turnover, asset turnover, operating costs, market share, market share growth, etc.). Identify areas where the Firm may outperform or underperform the peer group, and suggest improvements for weaknesses.

Â· Design a Balanced Scorecard for the Firm.

This project should follow a structured approach and should be prepared and presented as a professional business report.

lilacmanatee501

A decentralized organization is one in which:

a. each stockholder is given decision-making authority.

b. only top-level management is given decision-makingauthority.

c. each employee in the organization is given permission to makedecisions about their company.

d. managers at various levels throughout the organization aregiven decision-making authority.

A local chain department store grants each of its store managersthe authority to make buying decisions for their stores. Grantingmanagers this kind of authority is found in which type oforganization?

a. Desegmented

b. Centralized

c. Segmented

d. Decentralized

A local chain electronics store does not allow its store ordistrict managers to make important decisions about their stores.The main role of store managers is to supervise employees and makesure day-to-day transactions run smoothly while district managerssupervise store managers and report profitability data back totop-level management. Not allowing store or district managersdecision-making authority is most likely to be found in which typeof organization?

a. Centralized

b. Desegmented

c. Segmented

d. Decentralized

When a few individuals at the top of an organization retaindecision-making authority, the organization is referred to asa(n):

a. investment center.

b. centralized organization.

c. decentralized organization.

d. profit center.

Which of the following statements regarding the structure oforganizations is false?

a. In a decentralized organization, decision-making authority isconfined to top-level management.

b. Decentralization may make it difficult for managers to shareunique and innovative ideas.

c. When decision-making authority is spread among too manymanagers, managers may become so concerned with their own area ofresponsibility that they lose sight of the company's overallfocus.

d. In a decentralized organization, there may be a lack ofcoordination and communication between segments.

Which of the following is an advantage of decentralization?

a. It allows top-level management who normally work at corporateheadquarters to get involved with the day-to-day decisions thatneed to be made at lower levels.

b. It allows managers to focus on their own area ofresponsibility rather than what is best for the company as awhole.

c. It requires very little as far as manager training costs.

d. It allows decisions to be made in a more timely manner.

Which of the following is not an advantage ofdecentralization?

a. It allows lower-level managers to focus on their ownparticular goals and objectives without having to consider theoverall company's goals and objectives.

b. It allows top-level managers more time to devote tolong-range strategic planning.

c. It permits lower-level managers to gain valuable on-the-jobtraining in order to become better managers.

d. It often creates higher job satisfaction for managers.

Which of the following is often not a disadvantage ofdecentralization?

a. Lack of coordination and communication between segments.

b. Higher training costs for lower-level managers.

c. Lack of company focus as lower-level managers may makedecisions that benefit their own particular segment.

d. Decreased job satisfaction for lower-level managers.

Which of the following is a disadvantage ofdecentralization?

a. Lower training costs for lower-level managers.

b. Less timely decisions are able to be made on a day-to-daybasis.

c. Decreased job satisfaction for lower-level managers.

d. Lack of coordination and communication between segments.

"Responsibility accounting" is the concept that says:

a. managers should be responsible for both revenues and costs oftheir particular segment.

b. managers should be held entirely responsible for allinvestment decisions that impact the particular segment in whichthey are in charge.

c. managers should be held responsible for only those thingsunder their control.

d. managers should never be held entirely responsible for thingsthat happen within the particular segment in which they are incharge.

A budget for a single unit of a product or service is called asa:

a. real cost.

b. fixed cost.

c. total cost.

d. standard cost.

Which of the following statements is true regarding the budgetedcost for direct materials?

a. It must be determined after materials are purchased for theyear.

b. It can not be determined if a company uses a just-in-timeinventory system.

c. It would consist of two components - a standard quantity anda standard price.

d. It would be used on a static budget but not a flexiblebudget.

Variance analysis compares:

a. standard costs and actual costs.

b. static budgets and flexible budgets.

c. product costs and period costs.

d. practical standards and ideal standards.

Which of the following statements is false regarding taskanalysis?

a. It uses actual historical data in the determination ofstandard costs.

b. It emphasizes what it should cost to produce a product ratherthan historical costs.

c. It examines the production process in detail.

d. It may involve the use of engineers.

Task analysis:

a. is used to set standard costs.

b. is used to determine the tasks that production employeesshould complete on a daily basis.

c. is used to evaluate employee performance.

d. emphasizes the historical costs of a product.

A(n) ____ is attainable only when near-perfect conditionsexist.

a. static budget

b. ideal standard

c. flexible budget

d. practical standard

In most companies, machines break down occasionally andemployees are often less than perfect. Which type of standardacknowledges these characteristics when determining the standardcost of a product?

a. Practical standard

b. Ideal standard

c. Efficiency standard

d. Budgeted standard

Hathaway Inc. produces and sells golf umbrellas to localresorts. Hathaway anticipates April to be a busy month with thesale of 2,000 umbrellas. The company has prepared the followingstatic budget for April:

Sales revenue (2,000 units)	$60,000
Variable costs:
Direct materials	6,000
Direct labor	8,000
Overhead	2,500
Fixed costs	6,000
Net operating income	$37,500

During April, Hathaway actually produced and sold 2,300 umbrellas.What should be Hathaway's net operating income in April based on aflexible budget?

a. $35,025

b. $43,125

c. $44,025

d. $37,500

Hoppe Inc. manufactures widgets. Management has determined thateach widget has a standard materials cost of $3.50 when 2.5 ouncesof raw material at a cost of $1.40 per ounce are used. The staticbudget for the month of December showed an estimated production of4,000 widgets in December. During December, 4,300 widgets wereactually produced. The actual cost for each widget was $3.60 when2.25 ounces of raw material at a cost of $1.60 per ounce werepurchased and used. What should be the total direct materials costaccording to Hoppe's flexible budget for December?

a. $14,000

b. $15,480

c. $14,400

d. $15,050

Violetta Inc. manufactures plastic storage boxes. Management hasdetermined that each medium-sized box has a standard materials costof $1.20 when 4 pounds of raw material at a cost of $.30 per poundare used. The static budget for the month of March showed anestimated production of 15,000 boxes in March. During March, 17,000boxes were actually produced. The actual cost for each box was$1.56 when 3.9 pounds of raw material at a cost of $.40 per poundwere purchased and used. What should be the total direct materialscost according to Violetta's flexible budget for March?

a. $26,520

b. $23,400

c. $18,000

d. $20,400

Blue County Memorial Hospital (BCMH) is one of the largesthealth care organizations in eastern North
Carolina. It serves the eastern one-third of North Carolina andmaintains a 500-bed facility offering 24/7
acute medical and surgical care. The health care facility has over30,000 patient admissions a year, and
its average length of stay (LOS) is about four days.

The health care facility is organized by specialty and staffedwith qualified MDs, physician assistants
(PAs), nurses, and technicians. BCMH contains 12 operating rooms,all with state-of-the-art equipment,
numerous wards for postoperative care, and related ancillaryservices (rehabilitation, testing labs, etc.).
The operating room department has a large challenge in that it mustmanage and allocate equipment
and staff so that surgeries can be performed effectively but alsoin the most efficient manner possible.
In all, the assignment of equipment and staff is a difficultjob.

State regulations require threshold levels for nurse-patientratios, and not meeting these thresholds
may lead to underutilization of available capacity. In turn, thesize and mix of staff are critical decisions
for the workforce planners. Overstaffing, understaffing, orunbalanced staffing leads to issues with
quality of care and increased patient cost. BCMH meets its staffingrequirements with a mix of
permanent staff and an on-call group of part-time staff availableon short notice. There is also
temporary staffing that occurs for nurses with six-month toone-year contracts. Overall, the hospitalâs
staffing needs have been met by 60 percent permanent staff, 35percent temporary staff, and 5 percent
on-call staff.

BCMH provides services to patients, and in turn those patients,either through insurance or by direct
payments, reimburse BCMH for services provided. Although manyservices are provided, surgery is one
area where BCMH adds value and garners profits. However, surgerydemands numerous resources,
including equipment and staff (surgeons, nurses, technicians,etc.). BCMH is also responsible for
preoperative care and postoperative care. Insufficient capacity inany area (surgery, postoperative
wards, etc.) can lead to surgical procedures being turned away orto higher costs if accepted when over
capacity.

Slotting is used for planning and scheduling purposes. Each areawithin BCMH is broken up in half-day
slots, meaning there are 14 slots per week. Slot planning andscheduling is conducted about once a
quarter (once every three months). A plan is developed inconsultation with surgeons; demand for
surgical procedures varies little from year to year, but the demanddoes have a seasonal component,
making some quarters busier than others. In addition, somespecialties have peak demands whereas
other specialties have very stable demand.

The slotting and planning process also encompasses the staffingof nurses. The labor cost of nurses for
surgery is one of the largest and most controllable operatingcosts. Nursing staffing plans are prepared
each month for a monthâs time frame and two weeks in advance. Thenursing schedule is frozen one day
in advance and then resource requirements are matched based on theupcoming surgeries. This type of
planning is efficient for day-to-day operations but gives limitedflexibility in terms of the permanent
staff, temporary staff, and on-call staff. The nurse scheduler mustmany times rely on temporary staff or
on-call staff when demand changes occur in the short term.Subsequently, BCMH must meet its nursing
needs from outside, and in monetary terms the outside staff costsmore, as higher rates are paid to the
outside staff. In addition, the staffing in preoperative andpostoperative wards is done in a similar
fashion.

Q1: 1) What data items are to be collected, and how they areused in operational management of BCMHâs surgical
unit; Also Labor cost has gotten the attention of BMCH Leadership,and they want your team to come up with

options addressing nurse staffing. The team must come up with atleast three options for nurse staffing
to include outsourcing 100% of the nurses. What are theseoptions?

emeraldpug407

HAMG 2330 Chapter Notes - Chapter 3: Strategic Planning, Procrastination

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