The Industry the Organisation - Assignment Example

1.0. Introduction Michael Hill International owns the brand name “Michael Hill” and manages a retail jewellery series of 252 warehouses in Australia, New Zealand, Canada and the United States. The business started in the year 1979 when Michael and Christine Hill introduced their first retail in the New Zealand town of Whangarei. An exclusive retail jewellery procedure that entailed radically diverse store plan a merchandise variety dedicated completely to jewellery and high impact promotion, elevated the business to nationwide reputation. The business listed on the New Zealand Stock Exchange in 1987, the equivalent year it prolonged into Australia. 2.0. The organization; Core business The business deals with the production and sales of jewellery of any type across Australia and globally. The company has been realizing an increasing the level of sales over the last financial periods. 2.1.0. Mission and vision The company’s mission statement is to become the largest part of customer’s focal point in supply of jeweler globally. The company/s vision for the 2013-14 financial years is to enhance shareholders wealth by; • driving an enhancement in similar retail proceeds and EBIT particularly in Australia as well as opening 20 latest retail stores transversely the Group • distributing a return on shareholders’ funds in surplus of 20% and also attaining additional profit expansion in Canada • driving sustained sales development in the 9 stores in the US as well as instituting a domestic credit section to sustain our North American businesses • recovering gross margin on inventory employed 2.1.2. Strategic goals The overall strategic goals for the company is to expand shareholder riches over time by way of our attitude of proscribed profitable expansion 3.0. Transaction necessary to achieve the goals 3.1The customer The company currently focuses more attention on customers of the company in ensuring that product that meets customer’s expectation in terms of product quality and price is concerning maintaining the customers of the company, the company will achieve its strategic goals. 3.2. The employees The company currently ensures that its workers are having an ideal working environment with proper safety standards together with ideal remuneration. The net effect of this is that, there will be motivation at place of work hence the production capacity will be continuous in relation to goals of the company 3.3. The business partners The company tries to ensure that their business partners provide the required product at reasonable and agreed prices within the required time. This is important since, the production cycle for the business will be continuous hence goals will be easily attained. 3.4. The community Good corporate governance is important in any business situation and thus the company currently place more emphasize in ensuring that there is warm relationship between the company and the public so as t o sustain its goals objectives. 4.0. Details of the revenue cycle 4.1. Customer Details This is the first stage of accounting for revenue. In this stage, the details of the customer are entered in as well as the quantity of goods to be sold and prices per unit of the commodity. 4.2. Inventory In this step, sales invoice details is entered, the item prescriptions as well as the quantity of goods to be sold. 4.3. Sales invoice The sales invoice contains the item to be sold, the quantity and unit price of the product. This is important in order to ascertain the quantity and value of the product to be sold. 4.4. Sales At this stage, the process of making the sales is executed. The sales invoice is created, the date of selling the product is entered, the person who was selling the product and the customers names. 5.0 The database (SEE the excel file for a detailed report and analysis) 6.0. Report necessary to achieve the goals Enhanced internal control The management should ensure that there is effective internal control in the company since, this will help in ensuring that the transaction cycle is secured and that there is no fraud that might fail the attainment of goal objectives. Skilled workers Effective control cannot be attained where the company does not employ the skilled workers. In this regards, skilled workers will be effective since, they know what are expected of them as well as they will be aware of the company’s goal and objectives. 7.0 tow inherent risk Effect of rival competition The company currently faces with risk of rising rival competition that produces the same product to the customers with low quality. This risk is unavoidable since, it might affect the company’s goals and objectives and might lead to company’s insolvency. High operating cost accompanied with poor production facilities The company is faced with the challenge of maintain low operating and maintenance cost while ensuring that the production facilities process product of highest quality. The risk is inherent since, it might jeopardize the goal attainment of the business hence the company should institute strict control mechanism that will help minimize the risk. The following control matrix is important for the business in order to minimize the inherent risk as well as guarantee on the goal attainment of the business within the stipulated tie frame. Every business is always faced with three types of risk and they are all important in managing it since, they affect business performance in terms of goals achievement as well as the going concern assumption of the company. In this regards, an ideal control matrix must be instituted in the business in order to guarantee on the business continuity and goal achievement. Industry: Michael Hill Risk Analysis Risk Management Threat No Undesired Events (i.e. threats) L C R Controls Residual Risks Goal No 1: Improving shareholders wealth 1.1 The company is facing the challenge from rising competition 3 2 l Focus on producing quality product (a) worldwide monetary catastrophe Opening more warehouse across the globe Opening new production facility to increase production rate   Industry: Michael Hill Risk Analysis Risk Management Threat No Undesired Events (i.e. threats) L C R Controls Residual Risks Goal No 2: Increased profit with low production cost 2.1 Poor production facilities with high maintenance and operation cost 3 3 m Plans on installing new technological production machines (a) competition from high quality production companies   Reward high output employees Tracking the underperforming performing workers   8. Writen communication skills An ideal communication skills must instituted in the business in order to ensure that the above control matrix is a cleared put into practice. The best approach to effective communication skills is by ensuring that the employees clearly understand the company’s goals and objectives. This is achieved by ensuring that the company’s mission statement is clearly put in a comprehensible and secure place that every employee can undoubtedly access and read the mission and policy for the business as far as goals achievement is concerned. The company should remind workers frequently of what is expected of them in the production process as well as the adherence of the new control matrix in order to reduce the consequences of misunderstanding that might jeopardize the whole process of reducing the inherent risk and improving on the goals of the business to be realized within the stipulated time frame. Read More