ACCT2060 2018 A2 - 22.5/30 PDF

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22.5/30...

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Accountin g Assessme Tutorial Time: 2018 Semester 2 Lecturer: WONG KENG JEOW, SUNNY

Contents Stakeholder Groups................................................................................................................2 Broad Decisions of Stakeholders...........................................................................................2 Externalities...........................................................................................................................3 Types of Accounts..................................................................................................................3 Balanced Scorecard................................................................................................................4 Balanced Scorecard (2)..........................................................................................................4 Performance Metrics..............................................................................................................5 Reference...............................................................................................................................6

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Stakeholder Groups Stakeholders are people who have an impact on the entity. There are internal stakeholders and external stakeholders. The stakeholders I have identified are government, charitable organizations, local communities, employees and customers. The government is a stakeholder because of rules & regulation, taxation, legalities or other reasons. The government has to ensure that Go Lite abide by the rules in terms of law, does not commit any offence in terms of law or taxation matters, therefore they are external stakeholders of Go Lite. Charitable Organizations are stakeholders because Go Lite has to collaborate with the charitable organizations in order to help the Uganda workers to design and make their uniforms. They require the organizations to also distribute the uniforms. Local community are stakeholders because they are located near Go Lite. Go Lite could open up job offers to them and they could also be concerned with their hygiene practices since Go Lite is using recycled materials. - Employees Employees are also essential in every company. In order for a company to grow and sustain, they require more employees to handle different types of issues. With more employees, they are able to brainstorm, provide ideas, suggest strategies and solve internal or external problems in relation with the company. It is important for Go Lite to have employees that are hard-working and have the same mission and vision in order to succeed. - Customer Ultimately, Go Lite’s efforts and sustainability is dependent on their customer. Customers are external stakeholders. Customers play a crucial role in all business. Without customers, there is no way for a company to sustain. For Go Lite, they need to attract customers through various ways of marketing for their business to survive.

Broad Decisions of Stakeholders Go Lite is required to pay tax annually to the government. This is compulsory by law therefore the government has to collect taxes from Go Lite. The government could also force Go Lite to shut down if Go Lite did not abide by the laws. Charitable Organizations may decide to organise events to encourage people to make an impact to the needy communities. The charitable organizations may also invite companies that contributed before to contribute again if there is any disaster causes huge impact in certain locations. In such scenario, they may contact Go Lite for clothing donations to help the people that are affected by the disasters. The local community may approach Go Lite for employment purposes. Since Go Lite is a developing company, they may require to hire more staff. Such objective would attract the Page 2 of 7

local communities as they might share the same mission and vision. Local communities may also like to volunteer by keeping items that could be recycled aside and sell it to Go Lite. Employees may make decisions such as quit or work harder in order to get a pay raise or promotion. Employees contributes to the company’s efficiency and sometimes holds a crucial role in the survival of the company. Customers may decide to purchase the brand’s clothing in small quantity or huge quantity. It depends on the marketing effort, quality of the clothing and variety.

Externalities Externalities are impact on the stakeholders external to the company where parties did not agree to, take part in the activity causing the externalities. There are positive externalities and negative externalities. One of the positive externalities created by Go Lite is to decrease the amount of environmental pollution. Environmental pollution is caused by accumulated of waste that is unable to decompose in time as well as human behaviours. Go Lite is an environmental conscious company. It uses unwanted green bottles and make it into beautiful jackets. Such actions reduced the number of waste and also recycled waste into items that can be used. This will first impact the customers when customers are satisfied with Go Lite for making an impact to their home and environment. With the increased number of happy customers, this will affect the potential customers to convert to Go Lite’s customers. The increased number of Go Lite’s customer will eventually lead to the employees as they contributed to the number of sales. This may then led to their increased of salary. Such increased number of customers may also led to the company’s expansion, opening up job offers. Local communities will then be impacted by the company as they will get to have jobs. With jobs, the government does not need to be worried about the poverty due to no jobs. The charitable organisations will then benefit from this chain of impact as Go Lite will then have more disposable profit for charity purposes. Another externality created by Go Lite is helping the less-developed country citizen to stand on their feet. Go Lite helps them by designing uniforms for global health workers. This protects them which in turns allow them to focus on helping people in Uganda to get better healthcare and stand on their feet. This could impact the government as Go Lite contributes to other countries, representing Go Lite’s country of origin. The government will then appreciate Go Lite’s contribution to society. Local communities may be inspired by Go Lite’s actions and then be inspired to help and contribute to the citizens in lessdeveloped country. Go Lite can then influence their employees as well as customers to make a difference and do their part to contribute by donations or volunteering. This impact the most on charitable organisations as they are able to partner with Go Lite to help the people that requires help.

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Types of Accounts The government would require the accounts related to financial report such as Revenues, Expenditures, Liabilities and Cash. These are important as the government would check the company’s accounts and collect annual taxation. Charitable Organisations may require accounts such as inventory. This is so that the company is able to donate the amount of supplies when the charitable organisations require events such as disasters. Local communities may require accounts such as environmental costs and social costs. This is because local communities would be interested to know if the company is doing any damage to their home or making a contribution to the environment and social. Employees may require accounts such as salary payable, salary receivable, liabilities. This is because employees work for a living, they would be afraid if the company does not pay them on time or have a huge debt therefore affect their salary. Customers would be interested to know accounts such as inventory. This is because they may be interested in items that are out of stock or be interested to purchase more.

Balanced Scorecard Balanced Scorecard is a performance measurement framework which looks at four basic perspective of performance. Financial Eg. Revenue, Expenses, Profit, Liabilities

Customer Eg. Number of customers, number of returns

Business Processes

Innovation & Learning

It can be used for many purposes such as day-to-day work, keeping things on track, managing business strategies. The balanced scorecard helps to make the company’s mission, vision or goals into practical measures or strategies. One of the benefits of balanced scorecard is better strategy planning structure. Balanced scorecard includes all strategy which aligns with the company’s mission and vision. It is a powerful framework for communication as well as carrying out the strategies. Having a balanced scorecard allows easy-to-understand strategies to be carried out in the most efficient way as it keeps the goals at the centre and progression of strategies to be tracked. Since this is Go Lite’s second attempt to succeed in the market, it is important for Go Lite to have good understanding of the business. However, without good strategy planning structure, they would be unable to carry out their strategy to succeed in the market.

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Balanced Scorecard (2) Ethnical is also one of Go Lite’s social responsibility focus. It is very important for a company to have ethnics. Since Go Lite focus on recycling, they make use of products that has been used. Go Lite has to ensure that the materials for their products are safe for usage and processed accordingly. They have to be responsible for their products and not cause any harm or damage due to cutting of costs and neglected the importance of ensuring products are harmful to consumers. Environmental perspective is another perspective that Go Lite focus on. Go Lite’s focus on using recycled materials to produce their products and using low energy production methods which reduces pollution to the physical environment as well as making an impact on environment due to low energy consumption. With low energy consumption to produce their products, it causes less harm to the environment in terms of emission of harmful gases.

Performance Metrics Go Lite can use performance metrics such as profit and liabilities to monitor their financial perspective. For customer perspective, Go Lite could use number of new customer and number of return customer to track their marketing performance and impact on customer as well as customer’s satisfaction. For business processes perspective, Go Lite could use performance metrics such as number of failed product and number of machine breakdown. Such measures could reduce the waste of time and provide effective solution for efficiency. For innovation & learning perspective, Go Lite could measure rate of new products and number of completion of targeted goals to check if there is any innovation of products as well as any development of progress. For ethnical perspective, Go Lite can measure number of race and number of religion in Go Lite to ensure that Go Lite has no bias and racism towards as race or religion. For environmental perspective, Go Lite could measure amount of waste produced in terms of kilograms and amount of cardon dioxide produced to minimise any environmental pollution.

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Reference Ariella Gintzler. 2018. GoLite, Thru-Hikers' Favorite Brand, Is Back. Sorta. | Outside Online. [ONLINE] Available at: https://www.outsideonline.com/2304596/return-golite. [Accessed 06 September 2018]. SNEWS. 2018. GoLite® Relaunches with Purpose-filled Blend of Social and Environmental Initiatives and Earth-Friendly “Outletics™” Apparel Collection - SNEWS. [ONLINE] Available at: https://www.snewsnet.com/press-release/golite-relaunches-withpurpose-filled-blend-of-social-and-environmental-initiatives-and-earth-friendly-outleticsapparel-collection. [Accessed 06 September 2018]. SNEWS. 2018. The Rebirth of Golite | Golite is Back in Business - SNEWS. [ONLINE] Available at: https://www.snewsnet.com/gear/rebirth-golite. [Accessed 06 September 2018]. Go Lite 2009 sustainability report. Available at https://www.accountabilitycentral.com/fileadmin/SHQ/Industry_Dashboards/Apparel/GoLite%20LLC%20(2009).pdf [Accessed 06 September 2018] Bernard Marr. 2018. Balanced Scorecard: what are the benefits?. [ONLINE] Available at: https://www.bernardmarr.com/default.asp?contentID=1478. [Accessed 06 September 2018]. Bernard Marr. 2018. The 7 Key Benefits of Using a Balanced Scorecard. [ONLINE] Available at: https://www.bernardmarr.com/default.asp?contentID=972. [Accessed 06 September 2018]. ClearPoint Strategy. 2018. A Thorough List Of Balanced Scorecard Advantages & Disadvantages. [ONLINE] Available at: https://www.clearpointstrategy.com/thorough-listof-balanced-scorecard-advantages-disadvantages/. [Accessed 06 September 2018].

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