PART 1
Wholesome Ltd is a natural product retailing company that operates an organic store located in Maida Vale, London. It sells a wide range of organic products such as health and wellbeing, skin care and beauty, and food and drinks. It also serves a selection of freshly prepared lunches at the in-store deli counter. The lunches are prepared on site, in the shop kitchen. Over the past 18 months their profitability has suffered greatly as a result of operating at reduced capacity: sales across all product ranges were down by at least 5%, with ‘food and drinks’ suffering the least decline- this was due to their local customers remaining loyal during the pandemic. After a year and half of uncertainty and financial worry, management is reviewing its business strategy. They recognise the need for technological adaption as this will develop their capacity to reach their target market without a physical presence. As a result, they want to expand their operations and customer base by offering an online sales and delivery service. They are considering developing an online platform (with all management and support tasks dealt with in-house), investing in vans and employing drivers to ensure a robust delivery network. Required:
Assuming the role of the company’s management accountant, you have been invited to write a detailed report on how the company might be able to successfully set up an online sales and delivery service. When writing your report, you should consider the following: o Your report should take both an inward and an outward looking stance and set out key aspects of the planning, decision making and control process to implement the company’s new strategy. o In identifying your targets/objectives, you should include financial and non-financial targets/objectives. o When listing the activities that the company might carry out in each of the stages of planning, and decision making, explain and give specific examples on how management accounting may help in directing attention, keeping the score or solving problems. o You report should propose control systems to be set up to monitor the implementation of the decision and compare actual targets with planned ones.
Note: The more relevant the points you cover, the higher will be the marks awarded. You may find it beneficial to carry out some research on the industry. The better assignments will show a good grasp of the business issues, and will use management accounting tools and concepts effectively to analyse the alternative courses of actions and advise the business. The essential aspects of the framework are the management functions of planning, decision making and control and the management accounting functions of directing attention, keeping the score and solving problems.
(45% of marks, maximum 1,000 words
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