Chapter 1 – Cost Management and Strategy
1-31
The category, technology and data, is also likely to be different for a
manufacturer. While data management is critical for a health insurance
1-32
1-39 Strategy; Service Company (20 min)
1. Full Frame employs the cost leadership strategy by focusing primarily
2. Clyde’s pricing and employee-incentive policies are consistent with
the cost leadership strategy. The fact that the business has grown
from one to five stores in the past seven years is an indication that
the strategy is working.
there might be difficulty in measuring performance at the individual
employee level.
1-33
1-40 Strategy: Auto Tire Manufacturing (15 min)
Michelin’s continued success at selling high-end tires at premium prices is
1-34
1-41 (continued –1)
1-36
1-42 Strategy and the Balanced Scorecard; Customer Service (15
min)
Most of these companies are well-known and the students will likely
The 2009 list shown below had five firms in common with the 2010 list:
USAA, Lexus, The Ritz-Carlton, Publix Super Markets, and Ace Hardware:
1. Amazon.com
2. USAA
3. Jaguar
4. Lexus
5. The Ritz-Carlton
6. Publix Super Markets
7. Zappos.com, online retail
8. Hewlett-Packard
9. T. Rowe Price Brokerage
10.Ace Hardware
The 2007 list shown below had four firms in common with the 2010 list:
1. USAA
2. Four Seasons Hotels
3. Cadillac
4. Nordstrum
5. Wegmans Food Markets
6. Edward Jones, brokerage
7. Lexus
8. UPS
9. Enterprise Rent-a-Car
10.Starbucks
1-37
1-42 (continued – 1)
Source: Jena McGregor, “Customer Service Champs,” Bloomberg
Business Week, March 1, 2010, p 44; Jena McGregor, “Customer Service
Champs,” Business Week, March 5, 2009, pp 32-34.
19, 2006, pp 32-36.
1-38
1-39
12, 2007, pp 82-84. Ellen Byron, “101 Brands, 1 Manufacturer,” The Wall
1-40
1-44 Different Professional Certification Programs (15 min)
The answers will vary depending on the student’s career interests. Below
is listed the summarized content of the two exams taken from the web
sites.
skills needed to apply that knowledge.
1-41
1-44 (continued –1)
The CMA Exam has two parts:
Financial Planning, Performance and Control
Planning, Budgeting, and Forecasting
Performance Management
Cost Management
Internal Controls
Professional Ethics
Financial Decision Making
Financial Statement Analysis
Corporate Finance
Decision Analysis and Risk Management
Investment Decisions
Professional Ethics
The CMA Program has the following objectives, as explained on the IMA
website:
“The CMA program has been designed to meet the evolving needs of
business –today and tomorrow. We look forward to helping you achieve
excellence as a professional. Certification will confirm your proficiency in
your chosen field and your dedication to personal and professional growth.”
1-45 Learning About Different Professional Organizations; Using the
Internet (40 min)
The following sets out a number of key aspects of the different
organizations:
Organization
Publications
Other
Society of
Management
Accounts – Canada
• CMA Management
magazine
• Strategic Leadership
news tabloid
• Management
Accounting Standards
• Certificate program
— the CMA
(Canada)
• Strategic
Leadership
Program (for CMAs)
Chartered Institute of
Management
Accountants
• Financial
Management
magazine
• Programs for
colleges and
universities –
Learning through
partnership;
Accreditation
through partnership
• The Chartered
Management
Accountant program
• recruitment mall
American Institute of
Certified Public
Accountants
• Journal of
Accountancy
magazine
• accounting and
auditing standards
• code of professional
ethics
• CPA certificate
• affinity program
• Center for
Excellence in
Financial
Management
• Web Trust
• Classifieds
• CGMA Certification
(partnership with
CIMA)
Institute of
Management
Accounting
• Strategic Finance
magazine
• Management
Accounting Quarterly
• CMA certificate
• CFM program
(certificate in
financial
management)
Financial Executives
International
• Financial Executive
magazine
• research foundation
• “ask an FEI
researcher”
1-43
1-46 Ethics, Product Quality (15 min)
Though Green Acres is benefiting financially from its consumers’
misperception and has not purposely done anything misleading
(since it has never labeled its products as “organic”), it cannot
1-44