Managerial Accounting

In any organization, it is important that the three activities namely (i) partition of decision rights, (ii) measurement of performance, and (iii) reward of performance must be designed in sync to keep the organizational architecture or “three-legged stool” (Zimmerman, 2014) balanced. This will ensure that decision makers within an organisation have the relevant information to maximise firm value, as well as the incentives to use this information productively from the firm’s perspective.

Unfortunately, in reality, this is often not so. Mismatch among these three legs are common occurrences.

Required:
Select a company you are familiar with or one you are currently working in, or one with information publicly available. Using your own words as much as possible, and in not more than 2,000 words (in total):

(a) Describe the industry the chosen company is operating in, and an outline of the background, nature of business, the industry and the environment it is operating in, its products/services, etc. (5 marks)

(b) Choose one (1) functional area and describe what effective organizational architecture has been put in place by the company to maximise firm value. (15 marks)

(c) Describe any weaknesses of these existing systems. (15 marks)

(d) Suggest possible improvements that the company can adopt.(15 marks)