Role for activity-based cost systems in implementing strategy Consider the case of the Cott Corporation, a Canadian
Question:
Role for activity-based cost systems in implementing strategy Consider the case of the Cott Corporation, a Canadian private label producer of high- quality cola beverages. Cott is attempting to get grocery retailers to stock its cola beverages, as a lower price alternative to the international brands. Coca-Cola and Pepsi Cola. The international brands (Coke and Pepsi) deliver directly to the re¬ tailers store and stock their product on the retailer's shelves. Cott, in contrast, delivers to the retailer's warehouse or distribution center, leaving the retailer to move the product to the shelves of its various retail outlets. Cott offers substan¬ tially lower prices to the retailers, and, in addition, is willing to work with the grocery retailer to customize the cola beverage to the retailer's specification, develop special packaging for the retailer including labeling the beverage with the retailer's name (a practice known as "retailer branding"; e.g., "Safeway Se¬ lect Cola ), offer a full variety of carbonated beverages (diet, caffeine free, mul¬ tiple flavors, multiple sizes, and packaging options), and develop a marketing and merchandising strategy for the retailer for the private-label beverage.
REQUIRED How can Cott build cost systems to help it implement its strategy successfully? Consider how Cott might measure and manage activities and processes, and re¬ lationships with suppliers and customers.(LO 4, 5)
Step by Step Answer:
Management Accounting
ISBN: 9780130101952
3rd Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, S. Mark Young, Rajiv D. Banker, Pajiv D. Banker