The paper 'The Industry the Organisation ' is a perfect example of a Business Assignment. Michael Hill International owns the brand name “ Michael Hill” and manages a retail jewelry 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 jewelry procedure that entailed a radically diverse store plan a merchandise variety dedicated completely to jewelry and high impact promotion, elevated the business to a 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 jewelry of any type across Australia and globally. The company has been realizing an increasing 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 the customer’ s focal point in the supply of jewelers 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 the motivation at the place of work hence the production capacity will be continuous in relation to the goals of the company 3.3.
The business partners The company tries to ensure that its 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 places more emphasis on ensuring that there is a warm relationship between the company and the public so as to 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 number of goods to be sold and prices per unit of the commodity. 4.2. Inventory In this step, sales invoice details are entered, the item prescriptions as well as the number 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 customer's 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 skilled workers.
In this regard, skilled workers will be effective since they know what is expected of them as well as they will be aware of the company’ s goals and objectives. 7.0 tow inherent risk Effect of rival competition The company currently faces the 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 the company’ s insolvency. High operating cost accompanied by poor production facilities The company is faced with the challenge of maintaining low operating and maintenance costs while ensuring that the production facilities process product of the highest quality. The risk is inherent since it might jeopardize the goal attainment of the business hence the company should institute a 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 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 regard, an ideal control matrix must be instituted in the business in order to guarantee 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 a quality product (a) worldwide monetary catastrophe Opening more warehouse across the globe Opening a new production facility to increase the 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 Written communication skills Ideal communication skills must institute 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 goal 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.