The paper “ MiPie Company - the Achievement of the Marketing Budget and Effective Marketing Process Control" is a delightful example of a case study on finance & accounting. The case study is a representation of a company that has considered outsourcing as one of the ways of increasing the profitability of the company in that it enables the costs as well as the expenses to be cut down. The company wanted to outsource the production of pies in order for it to concentrate more on the issue of brand imaging as well as sales development in the territories of the European Union.
The differences as far as the issue of outsourcing came up when the marketing and production directors refused to support the finance manager’ s opinion of going ahead with the issue. The reason as to they were against the idea was different also for the two of them (Mintzberg, 1979). The marketing director was aware that by doing it there was a probability of an increase in terms of five folds especially in the budget of marketing but this meant that after £ 8million increase it will eventually lead to only £ 5million increase in sales as well as a cost of £ 4million even after the outsourcing is done (Finlay, 2000).
Some of the factors that were considered include the expenses that will be incurred, the issue of old employees losing jobs so as to employ new ones who can be able to deal with the operations of the new project. This is also another factor of consideration due to the fact that it will mean new expenses for training them. A profitable proposal was then suggested which was to deal with setting up energy sources that are renewable.
First, it is environmental friendly hence helping in environmental sustainability (Hill, & Jones, 2007). The methane gas being produced is simply due to the reuse of waste and then the wind energy is due to harnessing of the wind hence no purchase of raw materials. It will help the company remain competitive yet reduce its cost of production as well as have a source of energy that is sustainable. Cost of the projects= £ 15million Total Cash outflow for wind turbines= yr1+ yr 2+ yr 3+ yr 4+ yr 5= £ 10.7 Total Cash outflow for waste water lagoon= yr1+ yr 2+ yr 3+ yr 4+ yr 5= £ 5.4 Total Cash outflow in million = Total Cash outflow for wind turbines+ Total Cash outflow for wind waste Water lagoon= £ 10.7+£ 5.4= £ 16.1 Total cash inflow for wind turbines= yr1+ yr 2+ yr 3+ yr 4+ yr 5= £ 15 Total cash inflow for waste water lagoon= yr1+ yr 2+ yr 3+ yr 4+ yr 5=£ 8.06 Total Cash inflow in million = Total cash inflow for wind turbines+ Total cash inflow for waste water Lagoon=£ 15+£ 8.06=£ 23.06 Net cash flow for wind turbines= yr1+ yr 2+ yr 3+ yr 4+ yr 5= £ 24.3 Net cash flow for wastewater lagoon= yr1+ yr 2+ yr 3+ yr 4+ yr 5= £ 12.66 Total Net cash flow= Total cash flow for wind turbines+ Total cash flow for waste water = £ 24.3+£ 12.66= £ 36.96 Cumulative cash flow for wind turbines= yr1+ yr 2+ yr 3+ yr 4+ yr 5= £ 29.6 Cumulative cash flow for waste water lagoon= yr1+ yr 2+ yr 3+ yr 4+ yr 5= £ 16.66 Total Cumulative cash flow = Cumulative cash flow for wind turbines+ Cumulative cash flow for waste water lagoon = £ 29.6+£ 16.66= £ 46.26 Net profit = Total Cumulative cash flow - Total Net cash flow = £ 46.26-£ 36.96= £ 9.3