Smart Transport Group (STG), a medium-sized business, operates with a broad range of road transport and distribution services for local and interstate customers across Australia. Due to Covid-19 crisis and border restrictions, STG has been facing serious challenges and threats to its survival. During 2020, STG has experienced a massive decline in business volume and revenues. STG plans to eliminate 20 jobs (30% of its workforce) and 40% business costs/expenses in 2021. Using their huge financial and critical abilities, top transport companies have been aggressively competing on prices and costs to push the small/medium-sized transporters out of the market in this crunch time. STG has been struggling to make efficient/timely decisions in the of face market uncertainties due to Covid-19 crisis.

1. What management accounting tools or techniques could STG use to manage its operations, costs and revenue (hint: reduce business size and costs) on more efficient basis?

2. What could be the key characteristics of business strategies for STG to survive during the deepening Covid-19 crisis and market competition?

3. What ethical and behavioral considerations (non-financial issues) would be involved at STG if it cuts 30% of its workforce?

The Target Audience: Your target audience is a senior management team from STG.