Question
Choose a real company that you know. Research the macro-environment, industry's operating environment, the competitors and the customer groups of the company. Based on your
Choose a real company that you know. Research the macro-environment, industry's operating environment, the competitors and the customer groups of the company. Based on your research findings and your experience as a strategic management accountant, answer the following questions:
1.Discuss customer profitability of two customer groups of the company, assuming one being profitable and another incurs losses for the company for the current year. this should include following particulars: i) loss- incurring customer group for the company ii) income-generating customers for the company. In answering this question, you need to use hypothetical but logical figures. Therefore, analyze the company's operations and its activities with that specific customer groups. For example, based on your research, identify appropriate customer activities across three levels (i.e., order-level, customer-level and market-level), their cost drivers and estimated cost per unit of customer activity driver, and a number of estimated activities for each activity identified. State any assumptions that you make in answering this question. Please attach your tables and calculations as an appendix at the end of the report.
2.provide suggestion to the Chief-Executive Officer of the company identifying the reasons behind loss-incurring product line and customer groups. Provide your suggestions in improving the profitability of loss incurring product line and customer group.
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