Search results

– It is related to managerial accounting including style of management, evaluation method, risk management, responsibility accounting and reporting.

– It is suitable for both Bachelor's degree and Master's degree students to apply their comprehensive knowledge of managerial accounting on the case with relevance for the courses including managerial accounting, cost accounting, cost analysis and managerial accounting seminars.

– Information given by the case informs about the decentralized management structure and style of a data communication company, Data Communication Company Limited. The delegation of authorization is used as the main control of the company to monitor the performance of each department. The case study describes the company's specific methods as well as the monitoring procedures and the reports. In addition, it also addresses the management's concerns regarding risks as it relates to the current market situation.

– To study managerial accounting courses by using this case, it certainly enhances effectiveness and efficiency of accounting curriculum. This case specifically provides a realistic perspective, comprehensive information and solution capability relevant to real world challenges, which can be applied to managerial accounting.

– Teaching note.

The cases describe the demise of Arthur Andersen, a firm that had long set the industry standard for professionalism in accounting and auditing. Once an example of strong corporate culture with a commitment to public service and independent integrity, Andersen saw its culture and standards weaken as it grew explosively and changed its mode of governance. The (A) case describes a crisis precipitated by the admission of Waste Management, a major Andersen client, that it overstated its pretax earnings by $1.43 billion from 1992 to 1996. The resulting Securities and Exchange Commission (SEC) investigation ended with Andersen paying a $7 million fine, the largest ever levied against an accounting firm, and agreeing to an injunction that effectively placed the accounting giant on probation. Students analyze the causes of Andersen's problems and advise Andersen leadership. The (B) case covers Arthur Andersen's relationship with Enron, one of the great success stories of the “new economy” boom. When Enron's aggressive use of off-balance sheet partnerships became impossible to hide in autumn 2001, news reports stated that Andersen auditors had engaged in extensive shredding of draft documents and associated communications with Enron. Students are asked to act as crisis management consultants to Andersen CEO Joe Berardino. The (C) case details Andersen's collapse following its indictment and conviction on criminal charges of obstructing justice in the Enron case. Its conviction was later overturned by the U.S. Supreme Court on narrow technical grounds, but by then Andersen had ceased to exist, eighty-nine years after Arthur E. Andersen had taken over a small accounting firm in Chicago. Students can focus on the impact of media on a reputational crisis.

Students will: Identify the teachable moment in a crisis that leaders can leverage as an opportunity to improve a firm's reputation or core identity, to reinforce values, and to drive change, Understand the impact on crisis management of the media landscape and regulatory decision-making, Realize the fragility of corporate cultures and the need to actively maintain them, especially during difficult times,

Integrated Case Study, Advanced Management Accounting, Environmental Management Accounting (EMA), Human Resource Management.

This case is designed for undergraduate students in accounting, business or human resource management programmes.

The case is about Irfan, a former Production Manager in Omicron, a small and medium-sized enterprise in Selangor, Malaysia, manufacturing automotive metal parts. Irfan is truly enthusiastic for environmental and cost-reduction tools and wishes to pursue it further to his best possible. The case presents Irfan facing the dilemma of how to align his passion for these tools to his future career choice. He is faced with three options – to remain in Omicron, to accept a job offer in another company or to establish his own consultancy firm. The case highlights the heavy involvement of Irfan in the implementation of a new environmental tool, Material Flow Cost Accounting (MFCA) in Omicron, and all the tasks, activities, benefits and challenges encountered. Being at the ground with the implementation and outputs achieved, Irfan is excited about MFCA and wants to continue with it, due to the rich and valuable experience gained from its implementation and its potential for future savings. However, he does not seem to observe a similar excitement among the higher management. The case details an example of the implementation of MFCA for one of Omicron’s products and other relevant information that could serve as a guidance to any future implementation either in Omicron, the new company or even his own company. The case also provides details about Omicron and how Irfan regard Omicron as his second family to hint a strong pulling factor for Irfan to remain in Omicron, hence providing the extra weight on the dilemma he faces.

In the process of assessing a career choice dilemma for a middle-level manager, students are expected to analyse the three career options available to this middle manager, whose dilemma also relates to his passion of pursuing environment-related and cost-reduction tools. Where the environment is concerned, some parties need extra persuasion to pursue it and this also triggers the middle-manager’s dilemma. This case is intended to provide a tool to enable students to review and discuss matters, such as overcoming obstacles of pursuing environmental-related initiatives and progressing a mid-life career that provides self-fulfilment financially, emotionally and mentally. Among the theories and concepts referred include diffusion of innovations theory, EMA concepts and Hofstede’s cultural dimensions.

Teaching Notes are available for educators only.

CSS 1: Accounting and Finance.

The focused case is a “disguised case” developed based on a real-life apparel company in Sri Lanka. The authors have disguised the company name and have not revealed the identity of the key respondents and any data, which makes the firm obvious. However, the processes and practices reported represent the actual scenario of the company (gathered through interviews done mainly with the case protagonist, General Manager (GM) – Risk and Controls) and the authors have not fabricated any data.

Having established itself as a pioneer in the apparel industry in Sri Lanka, Dots & Lines reached the pinnacle of its performance in 2019. Following the outbreak of COVID-19, the situation turned unfavorable: global customers canceled orders by the end of the first quarter of 2020. It experienced settlement delays, increased freight charges and supply chain barriers. The virus spread among the operational staff, leading to health and safety issues and absenteeism. On April 2020, the executive committee gathered and decided to form a position titled “General Manager (GM) – Risk and Controls” and a team to turn around the company. Dots & Lines witnessed the harvest of the risk management turnaround measures pioneered by GM – Risk and Controls, from the first quarter of 2021 with impressive revenue and profit figures. It developed a pool of key strategic customers, while key performance indicators dashboards and the risk matrix provided vital insights in moving forward.

The case, Dots & Lines is written for use in undergraduate and graduate-level classes in business administration and management degree programs. The focus aligns with discussions on industry competition, controls and risk management. Of further importance, the case is applicable to discussions on topics in strategic management accounting courses.

The primary objectives of the case study are to get the participants exposed to the issues of working capital which even profitable companies face on a day-to-day basis; give the participants an understanding of how to balance the, at times, conflicting objectives of increasing profits and sales through favorable credit terms; and expose them to the impact of increase in inventory levels and average collection period on margins in a period of slow growth. They will also learn about the concept of factoring and its uses.

The case study is about a group of companies engaged in education, steel fabrication and oil businesses owned by a single proprietor. The company was based in Fatehnagar which was part of Hyderabad district in the state of Telangana, India, and the case study traces the origins of the group from 1960s to 2021. The group was invested the surplus cash flows from the oil business to initiate and expand other businesses during this period. The economic downturn due to the COVID-19 pandemic had hit the company, particularly its oldest business – Noble Chemical Agency. The oil business was facing issues related to its growth and profitability, and the uncertainty around COVID-19-related restrictions had only augmented the fears of the management. The case study looks at issues and the dilemma which the owner of the company faced. The case study highlights various issues related to working capital management, especially related to receivables management and inventory levels faced by businesses during the slow-growth phase. It demonstrates how working capital management issues, if not resolved in time, can lead to insolvency of even a successful company with a sound business model.

The case study is meant for teaching in postgraduate management programs (Master of Business Administration and Postgraduate Diploma in Management) in the following courses: corporate finance/financial management course in the first year (the case study should be taught towards the end of the course); and management accounting courses in first year (the case study should be positioned in the middle of these courses). The case study can also be used to highlight issues related to working capital and small business management in a Management Development Programme (MDP) course for “Finance fundamentals for non-finance executives”.

Teaching notes are available for educators only.

CSS 1: Accounting and finance.

At the end of the case discussion, students would be able to: design key account selection criteria for the organization’s vast clients; analyse the application of key account management (KAM) strategies in a business-to-business (B2B) segment for revenue growth for a medium-scale enterprise; recognize the significance of KAM in a B2B space for a scale enterprise; and assess the proficiency of Univ Manufacturers (UM) for KAM in addressing the existing challenges and managing business growth.

Tarun, the proprietor of UM, has recently received two big orders, one from Ram Enterprise, a long-standing client since 2011 of INR 2m (10% profit margin) and another order from a new client based in Chennai, a growing pharmaceutical products company, of order size of INR 2.3m (15% profit margin). Both the orders were required to be completed within 15 days. The new client with higher value and better returns could help UM enter the south India market, whereas business from the existing client was also profitable. Despite both orders being necessary for business survival and expansion, fulfilling them on schedule posed a huge challenge. Tarun wanted to fulfil both orders. He knew similar situations might arise in future. He advocated prioritizing customers, which made him contemplate KAM. On what basis he should categorize his customers was a big question. Tarun felt that it was time for UM to strategize relationship management with his customers. He wanted to optimize the partnerships. Tarun knew he wanted to introduce KAM, but was firm-level internal capabilities were enough for key account execution. What would be the feasible outcomes if KAM is applied at UM? What must he do to prevent such situations in the future?

This case can be used in B2B marketing and sales management courses. The dilemma can be explained as part of a marketing course for postgraduate and executive programs.

Teaching notes are available for educators only.

CSS 8: Marketing.

Critical analysis of observed practice.

Field study.

To expose accounting and MBA students to Lean management and the performance measures that support Lean management by presenting a case of a comprehensive and very successful Lean transformation; to give accounting and MBA students the opportunity to construct a strategy map and a balanced scorecard based on a rich case description; and to critically assess the suitability of balanced scorecards for a company that embraces Lean management.

The case describes a comprehensive transformation from conventional management to Lean management and business practices, with an emphasis on the largely non-financial performance measures used to support the transformation. Around the time of the Lean transformation, the balanced scorecard, a multi-dimensional measurement approach, was introduced to address the problems of excessive reliance on financial performance measures. Students are asked to compare and contrast Wiremold’s approach to the balanced scorecard.

Graduate or upper level undergraduate courses in cost accounting, managerial accounting and strategic management.

Through the discussion of this case, students will have a better understanding of the managerial dilemma associated with the implementation of management control in an early-stage firm. Students will provide proposals to improving current management control. Finally, this case encourages students to think about the costs and benefits of implementing formal management control systems.

As the company grows, it becomes difficult to keep control of the organization. The organizational structure of Majid Al Futtaim (MAF) Carrefour Jordan is too centralized, and the top management is confronted with information overload, which inhibits their ability to pursue strategic goals. The department managers are also confronted with communication problems, and they are evaluated based on the indicators that were out of their control. Processes and rules do not permit managers sufficient autonomy, and neither do these motivate employees towards organizational strategic goals. It is obvious that many control issues needed to be addressed in MAF Carrefour Jordan. However, given the limited budgets, MAF Carrefour Jordan managers need to decide which control systems to implement first.

This case can be used in an introductory cost accounting and management control course at the undergraduate or postgraduate level. The case should be introduced after students attained a baseline understanding of management control system fundamental concepts. However, this case is equally effective in introducing concepts to students who are new to management control systems.

Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

CSS 1: Accounting and Finance

In the (A) case, Jason Phillips, Chief Financial Officer of a soup manufacturing business, is given the task of maximizing the value of the firm twelve months after the case is set. Although he does not want to break any legal rules, Jason is interested to see whether accounting and real action choices can be used to enhance the company's financial position and increase its perceived value to investors. The case permits him to select from a menu of options, including decisions on product pricing, inventory levels, accounts receivables, leasing or purchasing a new machine and valuation or sale of securities. These choices are fed into an Excel spreadsheet which adjusts financial projections and accounting disclosures accordingly.

In the (B) case, Ben Kerr, Chief Investment Officer at one of Dragon's main competitors, considers the financial statements produced by Dragon to unravel any earnings management behavior and establish a true value for the company. Although the case can be focused on the accounting consequences of real decisions, a richer discussion is obtained when considering the ethical angles of the decision process. In particular, how much “earnings management” should be pursued and what types of behaviors are simply going to be unraveled by investors?

Students will explore: the concepts of “legal” earnings management as compared to true value optimization; whether sophisticated investors misled by such behaviors; and the management of information flows to investors.

The interviews were conducted with the respondents (the founder and Manager of De Cyber Hotel). Other data were obtained through the websites of the relevant businesses.

Siti Alia and her friends established De Cyber Hotel in January 2019. It was incorporated as a Malaysian private limited company in Cyberjaya, Selangor. Siti Alia was appointed as the hotel manager and was responsible for managing the hotel’s day-to-day operations and financial matters. Being a new budget hotel, competing with other established hotels was quite difficult. De Cyber Hotel used brochures and word-of-mouth for its promotion activities and mainly depended on walk-in guests. Siti Alia knew she had to take immediate action to ensure the hotel’s survival and could no longer rely on walk-in guests. Hence, to increase the occupancy and revenue rate, on 27 March 2019, De Cyber Hotel management decided to accept an offer from ABC Digital Booking to implement a digital booking mechanism and form a partnership for at least a year. ABC Digital Booking provided an online system to enable the listing and booking of budget accommodations and partnered with hotels to provide similar guest experiences across countries. After working and collaborating for 10 months with ABC Digital Booking, Siti Alia had to decide whether De Cyber Hotel should continue its alliance with ABC Digital Booking. Hence, she had to think thoroughly and consider the advantages and disadvantages, as well as the impact of her decision on the business.

Undergraduate Integrated Case Studies, Seminar in Management, Risk Management and Corporate Governance, Management Accounting, Financial Accounting, Strategic Management. Postgraduate Organizational Behaviour, Management Accounting and Controls, Strategic Management Accounting, Marketing Management, Hospitality Strategic Management, Entrepreneurship Development.