TASK

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This assessment task, together with Assessment Item 3 (Sustainable, Transfer Price & Investment Decisions), is designed to provide you with an opportunity to apply your understanding of strategic and sustainable management accounting concepts and practices to a real-life business, Peters Ice Cream (Australasian Food Group).

Background

Peters Ice Cream was founded in Sydney by Fred Peters in 1907 (AFG 2022). The firm manufactures various ice cream tub, stick, cone and bar products and controls many recognisable brands. Amongst others, these brands include Drumstick, Connoisseur, Maxibone, Billabong and Skinny Cow. Collectively, these brands account for a significant percentage of the Australian Ice Cream market (IBIS World, 2022).

Question 1 Strategic Management Research Report (50 marks) (Maximum report length: 2,000 words)

You have been commissioned by the senior management of Peters to prepare a research report on the firm's future strategy. As part of your research report, you must select one of Peters' key product lines and provide the following:

1. A brief overview of the nature and current prospects of the firm and your chosen product line (5 marks).

2. A detailed overview of your product line's environment using Porter's Five Forces Model. A clear conclusion regarding the strength of each force must be provided. All conclusions must be backed by thorough research and relevant facts/stats/figures (25 marks).

3. An overview of your own recommended strategy for your chosen product line for the next two years. This recommendation should: (a) be clearly linked to your prior analysis, (b) include examples to illustrate how it could be implemented, and (c) include two strategic objectives and two key performance indicators for each objective (10 marks). As identified below, your objectives should consistent with the S-M-A-R-T objectives criteria and your KPIs should be consistent with the criteria for effective performance measures.

4. An overview and recommendation of how the firm's management can use cost-volume-profit analysis to evaluate the appropriateness of your recommended strategy (5 marks).