Case Studies - Examples

Question 1

Divisions

Answer 1

General Motors

Question 2

What were General Motors Issues

Answer 2

GM had Transfer pricing issues.

• Transfer pricing disputes leading to;

. Sub optimization
. Distrust
. Slower Product Development
. Outsourcing engines

Question 3

TQM

Answer 3

Toyota’s Kaizen.

• Incremental Improvements
• JIT Logistics
• Lean Ops

Question 4

Internal Audit

Answer 4

Unilever

• Sees Internal auditors as business advisors. (Value add)

Question 5

Good Controls

Answer 5

HSBC

• Considered one of the best in terms of internal controls, from a patchy past. (Money laundering)
• It has internal audit functions
• Robust transaction monitoring controls
• Has a compliance and risk management team.

Question 6

Poor Controls

Answer 6

Barings Bank

Nick Leesons’ speculative spending.
Lack of oversight
Hidden losses through false records.

Question 7

BPR - Business Process Re-engineering Success

Answer 7

IBM and Their Credit Approvals Process

• Re-engineered from several lines of controls, to one specialist team.
• Reduction from 14 days to 4 hours.
• Resulting in greater customer satisfaction

Question 8

BPR - Business Process Re-engineering Failure

Answer 8

Chrysler-Daimler Merger

Chrysler tried to re-engineer the firm wide processes within Daimler, but ignored cultural and contingent differences in the firm, creating integration resistance to change on part of Daimler.

Resulting in a failed merger

Question 9

Budget Demotivation

Answer 9

Wells Fargo.

Were set unrealistic sales goals, that lead to staff loss, and remaining staff faking account set ups to meet budget demands.

Question 10

Management Accountants Role past and Present

Answer 10

Lever (Soap manufacturing) Past
- Cost accounting
- Budget Management
- Report Production

Lever post merger (Unilever)
- Cost management and Efficiency
- Financial Planning - Budgeting
- Performance Evaluation and Strategy

Question 11

Balance Scorecard Success

Answer 11

South West Airlines. BSC Perspective compliment and overall objective

Financial
- Fewer planes, more customers. Profit

Customer
- Low prices, Timely flights

Internal
- Faster ground teams and turnaround

Learning
- Training for alignment.

Question 12

Big Data

Answer 12

Google.

Google uses big data to target their advertising, using search analytics.

Facilitating greater customer satisfaction due to targeted ads.

It also reduces wasted costs on general marketing.

They use AI too.

All feeding into retention.

Question 13

Detriment of Nil Budget

Answer 13

in 2018, the US Government borrowed significant amounts in loans without a budget in place. It now spends more on interest repayment to China and other economic rivals, than it does on any value add sectors such as Education or defence