Sustainable and Strategic Accounting - MyAssignmenthelp.com

Questions: 1. Discuss aboutthe Strategic and Knowledge Management. 2. Discuss about the Product Mix. 3. Discuss about the Linear Programming. Answers: Answer 1 This question has tried to recognise and explain the environmental and the social concerns that are in relation to the operational activities of Premier Investment. Premier Investment is a retail organization which concentrates on providing the exclusive garments to their customers in the countries where they operate. Each and every organization has their own strategies and every one of them constructs their social and environmental strategies with respect to the concerns that are associated with them. Premier Investment have identified that environmental concerns has been looking at the environment of the country and eco-system where the organization operates. The other environmental issue has been proper utilisation and incineration of the wastes that have been obtained from the manufacturing process of Premier Investment (Home - Premier Investments 2017). The social concerns that the company has tried to recognise has been gaining knowledge about the changing trends and the tastes and preferences of the consumers. The organization needs to analyse the market from time to time so that the changes in the market can be understood and several strategies can be undertaken in order to mitigate the social concerns. In relation to the operational activities of the company, the three objectives that are associated with the business sustainability commitments of Premier Investment has been to look at the looking at the people associated with the organization. There are a variety of individuals who are related to the operational functions of the company as an employee, stakeholder or as a customer and therefore effective measures can be taken in order keep them satisfied and happy so that they remain associated with the company for a long time (Crane, Matten 2014). The next business sustainability objective has been to understand and look after the communities that are related to Premier Investment organizations. The company tries to look into the communities in order to gain knowledge about their desires and then looks to develop plans and strategies that would be influential for the manufacturing of the products desired by the communities and assisting in the development of the organization and the community (Grob, Benn 2014). The third objective has been looking at the environment of the area where the company thereby understanding the problems that are prevalent so that effective performance measures can be taken in order to rectify the matter. The three objectives that are related to ethical sourcing of Premier Investment has been developing the sourcing framework and models that would be constructed in accordance to the policies and the principles. The next ethical objective has been framing the assurance and promoting them to among the employees and the environment where the company operates so that ethical processes are maintained (Perry et al., 2015). The third objective has been establishment of the ethical raw material procurement so that the products produced and the raw materials used are of ethical and are of good quality so that the customers feel satisfied. The two measures that could be made in order to measure the progress of the organizations for the accomplishment of the objectives has been given below with the help of the table. Dimension Objective Possible Performance Measures Business Sustainability 1.People 1. Initiatives for retention and attraction of the existing and potential employees and customers. 2. Measuring the workplace security and keeping personnel to manage and supervise the workplace environment 2.Community 1.Keeping relationship with the Smiggle Community Partnerships 2.Maintaining relationship with PAW JUSTICE 3.Environment 1.Looking after the waste and recycling of the wastes generated during the process manufacturing 2. Making sure that the energy is used effectively. Ethical Sourcing 1. Constructing sourcing models with the help of policies and principles 1. Assessing the effectiveness of the models with the help of survey from the stakeholders and the customers. 2. Assessing the models and comparing with the ethics constructed internationally. 2. Establishing and promoting the assurance 1.Comparing the assurance with the assurance set by the rival companies 2. Frequent analysis and the review of the assurance so that changes can be undertaken 3. Ethical Raw Material procurement 1.Checking the raw material before purchasing 2. Establishing good relation with the supplier. Answer 2 Particulars Amount Particulars With Spare Capacity Without Spare Capacity Direct Material per kg. $10 Transfer Price $24.70 $40 Direct Labour per kg. $5 Variable Overhead per kg. $3 Fixed Overhead per kg. $1 Total Cost per kg. $19 Add: Mark-Up 30% Transfer Price per kg. $24.70 Answer 3 Period Particulars 0 1 2 3 4 5 6 7 Initial Investment ($1,650,000) Annual Cash Flow: Service Charges per customer $0 $35 $35 $35 $35 $35 $35 $35 Nos. of Customers 0 35000 38500 42350 46585 51244 56368 62005 Service Revenue $0 $1,225,000 $1,347,500 $1,482,250 $1,630,475 $1,793,523 $1,972,875 $2,170,162 Increase in Sales of Jeans $0 $550,000 $616,000 $689,920 $772,710 $865,436 $969,288 $1,085,602 Total Incremental Revenue $0 $1,775,000 $1,963,500 $2,172,170 $2,403,185 $2,658,958 $2,942,163 $3,255,765 Cost of Sales of Jeans $0 ($330,000) ($369,600) ($413,952) ($463,626) ($519,261) ($581,573) ($651,361) Staff Costs $0 ($900,000) ($954,000) ($1,011,240) ($1,071,914) ($1,136,229) ($1,204,403) ($1,276,667) Material Costs $0 ($210,000) ($222,600) ($235,956) ($250,113) ($265,120) ($281,027) ($297,889) Marketing Costs $0 ($46,000) ($48,760) ($51,686) ($54,787) ($58,074) ($61,558) ($65,252) Other Costs $0 ($25,000) ($26,500) ($28,090) ($29,775) ($31,562) ($33,456) ($35,463) Depreciation Expenses $0 ($235,714) ($235,714) ($235,714) ($235,714) ($235,714) ($235,714) ($235,714) Net Profit before Tax $0 $28,286 $106,326 $195,532 $297,255 $412,997 $544,431 $693,418 Less: Tax Expenses $0 ($8,486) ($31,898) ($58,660) ($89,176) ($123,899) ($163,329) ($208,025) Annual after Tax Profit $0 $19,800 $74,428 $136,872 $208,078 $289,098 $381,102 $485,393 Add: Depreciation Expenses $0 $235,714 $235,714 $235,714 $235,714 $235,714 $235,714 $235,714 Annual after Tax Cash Flow $0 $255,514 $310,142 $372,587 $443,793 $524,812 $616,816 $721,107 Net Cash Flow ($1,650,000) $255,514 $310,142 $372,587 $443,793 $524,812 $616,816 $721,107 Cumulative Cash Flow ($1,650,000) ($1,394,486) ($1,084,343) ($711,757) ($267,964) $256,848 $873,665 $1,594,771 Payback Period 4.51 Discount Rate 20% 20% 20% 20% 20% 20% 20% 20% Discounted Cash Flow ($1,650,000) $212,929 $215,377 $215,617 $214,020 $210,910 $206,570 $201,248 Net Present Value ($173,329) IRR 16.729% Average Annual after Tax Profit $463,539 ARR 28.09% Required Rate of Return Particulars 12% 16% 20% NPV $309,102 $42,747 ($173,329) Payback Period 4.51 4.51 4.51 ARR 28.09% 28.09% 28.09% The recommendation that can be given to Just Jeans is that they should go on with the proposal and the new recommendation has various aspects that would reduce the level of sensitivity with respect to the financial impact of the new capital investment. Reference Bocken, N. M. P., Short, S. W., Rana, P., Evans, S. (2014). A literature and practice review to develop sustainable business model archetypes.Journal of cleaner production,65, 42-56. Chen, J. Y., Slotnick, S. A. (2015). Supply chain disclosure and ethical sourcing.International Journal of Production Economics,161, 17-30. Chkanikova, O., Mont, O. (2015). Corporate supply chain responsibility: drivers and barriers for sustainable food retailing.Corporate Social Responsibility and Environmental Management,22(2), 65-82. Crane, A., Matten, D. (2016).Business ethics: Managing corporate citizenship and sustainability in the age of globalization. Oxford University Press. Epstein, M. J., Buhovac, A. R. (2014).Making sustainability work: Best practices in managing and measuring corporate social, environmental, and economic impacts. Berrett-Koehler Publishers. Grob, S., Benn, S. (2014). Conceptualising the adoption of sustainable procurement: an institutional theory perspective.Australasian journal of environmental management,21(1), 11-21. Home - Premier Investments. (2017). Premier Investments. Retrieved 15 September 2017, from https://www.premierinvestments.com.au Kim, S., Colicchia, C., Menachof, D. (2016). Ethical sourcing: An analysis of the literature and implications for future research.Journal of Business Ethics, 1-20. Kolk, A. (2016). The social responsibility of international business: From ethics and the environment to CSR and sustainable development.Journal of World Business,51(1), 23-34. Lund-Thomsen, P., Lindgreen, A. (2014). Corporate social responsibility in global value chains: Where are we now and where are we going?.Journal of Business Ethics,123(1), 11-22. Perry, P., Wood, S., Fernie, J. (2015). Corporate social responsibility in garment sourcing networks: Factory management perspectives on ethical trade in Sri Lanka.Journal of Business Ethics,130(3), 737-752. Quarshie, A. M., Salmi, A., Leuschner, R. (2016). Sustainability and corporate social responsibility in supply chains: The state of research in supply chain management and business ethics journals.Journal of Purchasing and Supply Management,22(2), 82-97. Turker, D., Altuntas, C. (2014). Sustainable supply chain management in the fast fashion industry: An analysis of corporate reports.European Management Journal,32(5), 837-849. Zorzini, M., Hendry, L. C., Huq, F. A., Stevenson, M. (2015). Socially responsible sourcing: reviewing the literature and its use of theory.International Journal of Operations Production Management,35(1), 60-109.