As mentioned in Exhibit P-1 of our textbook, managerial accounting helps managers perform three vital activities - planning, controlling, and decision making. Write a brief 2-3 page paper about your employer or a favorite business you personally visit or are a patron (Starbucks, Netflix, Planet Fitness, etc.) and discuss the risks they face in their industry that can influence their planning, controlling, and decision-making activities.

Include specific examples of threats for all three areas and make suggestions for how they can reduce those risks. Use a SWOT analysis approach to your answer (strengths, weaknesses, opportunities, and threats). Are their risks internal, external, or a combination of both? Also include in your paper why you chose this company and evaluate how successful you think they will be, given their current strategic design, to be prepared for such risks. Provide quantitative and qualitative factors to support your opinion.

EXHIBIT P-1 Comparison of Financial and Managerial Accounting Accounting Recording Estimating Organizing Summarizing Financial and Operational Data Financial Accounting Managerial Accounting Reports to those outside the organization: Reports to managers inside the organization for: Owners Planning Controlling Decision making Creditors Tax authorities Regulators Emphasizes financial consequences of past activities. Emphasizes decisions affecting the future Emphasizes objectivity and verlfiability Emphasizes relevance Emphasizes precision Emphasizes timeliness Emphasizes companywide reports Emphasizes segment reports Need not follow GAAP/IFRS. Not mandatory Must follow GAAP/IFRS. Mandatory for external reports