CASE STUDY

In this case study, students will be evaluated on their ability to analyse, interpret, justify, create ideas, propose viable and ethical solutions, and apply the best alternatives in the areas of managerial accounting and finance. Though basic guides are given below, students have the flexibility to be creative in showing their ability to apply the concepts and methods in managerial accounting and finance where students have to identify and elaborate issues, create or estimate numbers or cash flows, propose solutions etc.

THE CASE

Students to refer to Starbucks Case Study How Starbucks Conquered The Coffee Industry?

Based on the information given, prepare a thorough study on Starbucks by following below guides/instructions. Imagine you being a top level of a management of Starbucks, and give your own ideas. You must be specific and relate your answers to your job with Starbucks.

INSTRUCTIONS:

1. CAPITAL BUDGETING - The board also requested you to analyze two new business projects that could return the fastest initial outlay. Propose two new business projects, preferably relating to the same industry and apply Payback Period method. Prepare a table with your estimated 5-yearly expected cash flows as illustrated in the notes given. Recommend the best project for the coming years.

2. SHORT TERM DECISION MAKING - Propose whether the said company need to make or buy the product. Explain why you recommend the decision based on your decision-making analysis.

3. ABC COSTING SYSTEM - Using ABC Costing System, analyse and propose the areas where the system can assist the top management team and benefit the business in the coming years. The recommendation should be in line with the common objectives that are to minimize costs and maximize profits ethically.

4.DIVIDEN POLICY - Study the factors in the said company that may affect the Dividend Policy. List and elaborate types of dividend policy and propose the most relevant dividend policy for the said company. Recommend the best types of dividend ie. cash or stocks for the shareholders and explain why.

5. ISLAMIC ACCOUNTING - Identify some non-Shariah compliant issues in the said company and recommend Shariah compliance solutions for that matters. On non-Shariah compliant issues, you may look into areas such as sources of business financing, types of banking accounts used, types of excess cash investment, financing for staffs, inappropriate advertisement, ingredients for the products, halal certification, zakat etc.

6.INTRODUCTION TO FINANCIAL MANAGEMENT - Identify and elaborate your functions in managing finance in the said company. Relate the functions to your position as a Finance Manager in the said company and industry.

REQUIREMENTS :

1. Each questions must consist of 2 pages of answers
2. Add Flow Charts/Graphs
3. Include calculations
4. Please do on your own intrepretation