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1 – 2 of 2Bhoomi Ruchit Mehta and Sandip Trada
Through this case, participants will be able to:▪ understand the different approaches to preparing operating budgets;▪ classify the costs based on traceability to its cost…
Abstract
Learning outcomes
Through this case, participants will be able to:
▪ understand the different approaches to preparing operating budgets;
▪ classify the costs based on traceability to its cost centres;
▪ understand the difference in budget preparation and its analysis under different cost centres;
▪ put together the required information, identify the format and prepare major operating budgets; and
▪ evaluate operating budgets and give suggestions to the company based on budget analysis.
Case overview/synopsis
This case is about a manufacturing company that is going to introduce a budgeting system. It highlights the process of information collecting from key employees for budget preparation. This case also deals with various decisions to be made during the implementation of the new system such as the context of budgets, cost units and sequence of budgets.This case will help students to enhance their understanding of the operating budgets. The students will able to visualize the difficulty faced by companies to implement a new system.
Complexity academic level
This case is applicable in the courses such as Master of Business Administration, Master of Commerce or other postgraduate studies. This can also be discussed in professional courses such as Chartered Accountants, Certified Management Accountants, Company Secretaries, Institute of Cost and Works Accountants of India and Chartered Financial Analysts.
Supplementary materials
Teaching Notes are available for educators only.
Subject code
CSS 1: Accounting and Finance.
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Keywords
In 2015, NESTLÉ India underwent a major crisis as the product which contributed to nearly 30% of its sales had to be taken off the shelves. Maggi—the go-to convenience food for…
Abstract
In 2015, NESTLÉ India underwent a major crisis as the product which contributed to nearly 30% of its sales had to be taken off the shelves. Maggi—the go-to convenience food for all generations (especially kids and young adults)—which had entered the market in 1983, was banned. With a market share of 70-80% before the ban, NESTLÉ, which got the ban lifted in November 2015, had to undergo the task of winning back the lost market. Over a period of 8 months after its relaunch, the brand regained about 60% of its market back, but the question is how could such brand disaster be avoided in future? The case revolves around a major brand recovering from a brand disaster, and whether they did it well enough or could the situation have been managed better. It also enquires as to what road should be taken forward from here. It notes the action taken by the government against the brand and leaves it to the judgment of the readers if the actions taken against the brand were a little too harsh, solely because MNCs are usually considered a soft target in India. The readers must also understand and analyse the different brand relaunch strategies that were adopted by NESTLÉ and the next steps that should be taken by it.
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