3 5 assignment 2: team assignment
3 5
Assignment 2: Team assignment
https://swinburneonline.instructure.com/courses/109/assignments/548 1/11
ACC20014: Management Decision Making
Assignment 2: Team assignment
Word limit: 4000 words (+/ 10%)
Weighting: 35%
Due date: 5pm AEDT Monday 22 January 2018 (Week 10)
After you have read this information, head over to the Assignment 2 Q&A discussion board to ask any
questions and see what your peers are saying about this assignment.
Assignment overview
The purpose of this assignment is to demonstrate your ability to work within a team and to present
your team’s knowledge and understanding of the balanced scorecard as a strategic planning and
management system and how to adopt it within a business environment.
You will work within a group of three (3) students to produce a team report for the manager, John
Clarkson, of ‘The Business’.
Related learning outcomes
This assignment assesses the following unit learning outcomes:
1. describe and explain the major practical and theoretical issues impacting management’s use of
management accounting
2. critically appraise the information required for effective and efficient planning, control and
decision making
4. work in diverse groups to reflect on and analyse behavioural influences on the decisionmaking
processes and outcomes in various organisational contexts.
Assignment details
Introducƭon
Your group is asked by a consulting firm – ‘We will make your business great again’ to design a
strategic management system for a business specialising in retailing home improvement and
outdoor living products called – ‘The Business’.24/12/2017 Assignment 2: Team assignment
https://swinburneonline.instructure.com/courses/109/assignments/548 2/11
‘The Business’ was recently acquired by a grocery and liquor retail chain, traded on the Australian
Stock Exchange. You were told that though ‘The Business’ made A$1 billion in sales last year, its
operating income was nil, and the new manager, John Clarkson, was given five years to improve
the operation of ‘The Business’. The 5year goals for ‘The Business’ are:
1. increase sales every year to reach at least A$5 billion in five years or sooner
2. achieve positive operating income with a Return on Sales of 15%
3. increase market share to at least 11% in five years or sooner.
Currently, the business owns 23 stores, mainly in Victoria, New South Wales and Queensland,
however, the parent company will make a financial commitment of $1 billion to improve existing
stores and to open 5 more new stores in the next 2 years. Part of the group, ‘The Business’ will
operate as a separate company and its management will be responsible for all decisions in
relation to the types of products being sold, the expansion and other activities of carrying on the
business.
Background to ‘The Business’ and to the ‘Hardware and building
supplies retailers’ industry
Like most of the hardware and home improvement companies, ‘The Business’ is exposed to a
range of factors such as price, product range, consumer sentiment, discretionary income, and
residential construction activity which all affect demand for hardware and building supplies.
‘The Business’ operates in a highly competitive market. National chain stores such as Bunnings,
Mitre 10 and Home Timber & Hardware dominate the market. However, the industry is still
fragmented. Most businesses are relatively small, privately operated, employ fewer than 20 staff,
and have annual revenue of less than $2 million. The majority of hardware stores are located in
New South Wales, Victoria and Queensland, accounting for an estimated 77.2% of industry
enterprises. Tasmania, the Northern Territory and the Australian Capital Territory account for only
3.9% of the industry’s hardware stores.
It is forecast that over the next five years, the industry will be growing and that growth will be due
to increased residential and commercial construction.
Some key financial data:
Operating revenue (A $m) 1,000
Earnings before Interest and tax (A $m) 0
Current Assets (A $m) 540
Total Assets (A $m) 1,70024/12/2017 Assignment 2: Team assignment
https://swinburneonline.instructure.com/courses/109/assignments/548 3/11
Current Liabilities (A $m) 364
Total Liabilities (A $m) 372
Return on Investment 0
Required Rate of Return 12%
Please note: You can find more information about the Hardware and building supplies retailers’
industry on the IBISWorld – Database
(http://clients1.ibisworld.com.au.ezproxy.lib.swin.edu.au/reports/au/industry/default.aspx?entid=1877)
available from Swinburne Library website.
The hardware stores operaƭons
After a quick visit to a number of stores owned by ‘The Business’ you concluded that stores are
located rather inconveniently, or next to busy shopping centres, where customers need to compete
for car parking with other shoppers. You found the stores offered a poor range, old or out of
season and often inappropriate products. You wondered why it is the stores have hundreds of light
fittings, but none you would want to install in your own house.
You were disappointed to find out that the advertised 20% discounting applied to very few
products, which were otherwise unsaleable, whilst the products you could have been interested in
were offered at full price or discounted by 5%. You felt that it was misleading advertising.
Furthermore, prices of many products were higher than those of competitors.
The stores themselves were rather dark and lacking an appropriate signage resulting in wasting a
lot of time just to find a product. It was challenging to find a product but even more frustrating to
learn was that the particular product had its price tag missing.
The floor staffs were very scarce so it was difficult to find a staff member to help and if there was
someone available, they usually had very little knowledge about the products. You had to wait for
half an hour for someone to mix your paint, and when finally an employee appeared, he did not
know how to read the mixing instruction.
One of the staff members said to you that she never learned about the products they sell and
neither of the staff had any training about customer service. She also was quite dismissive about
her boss, stating that the floor managers or even top management did not know how to deal with
their employees and with customers.
Though, there were not many people in the shop, you observed long queues at the checkouts. A
number of people were complaining about being overcharged.24/12/2017 Assignment 2: Team assignment
https://swinburneonline.instructure.com/courses/109/assignments/548 4/11
On the way to the car park you’ve noticed that there was no one to help an elderly lady to carry a
plant to her car.
The balanced scorecard
After assessing the financial situation of ‘The Business’ and its operations, you realised that ‘The
Business’ needs a total overhaul of its management system. You decided that the balance
scorecard with its measures that drive performance will be a perfect strategic planning and
management system for ‘The Business’.
Steps to compleƭng this assignment
1. Perform a SWOT analysis of ‘The Business’
you need to list at least four issues for each element of SWOT analysis – Strengths,
Weaknesses, Opportunities and Threats; and
you also need to elaborate why you considered these particular issues in your analysis.
Tip: Strengths and Weaknesses relate to internal matters of a company, whereas Opportunities
and Threats relate to external issues such as competitive advantage
2. Formulate a vision, mission and overall strategy/s for ‘The Business’.
3. Design a balanced scorecard for ‘The Business’.
In particular you need to:
Draw a strategy map based on the objectives that you develop for ‘The Business’. Tip: you
should utilise your SWOT analysis in developing the objectives for ‘The Business’.
Briefly define the objectives included in the strategy map and explain why these particular
objectives are important for ‘The Business’. Tip: you can describe and explain the objectives in
the strategy map
Prepare a scorecard with measures, targets and initiatives (action plan) that you need to
develop for ‘The Business’
Explain how your balanced scorecard will help to achieve the overall strategy/s of ‘The
Business’. You need to support your discussion with appropriate literature.
Evaluate how your balanced scorecard will promote goal congruence for ‘The Business’.
Again, you need to support your discussion with appropriate literature. Tip: an appropriate
reward system will be useful in promoting goal congruence.
Write a memorandum to John Clarkson summarising your report and outlining what you
believe to be the strengths of your balanced scorecard. Tip: write a memorandum instead of an
executive summary.
Format
This assignment must be written in the form of a report
(https://portal.swinburneonline.edu.au/studyresources/reportwriting) . However, instead of an
executive summary, please write a memorandum to John Clarkson.
The assignment should contain appropriate referencing using the Swinburne Harvard
(http://www.swinburne.edu.au/library/referencing/harvardstyleguide/) . References to online24/12/2017 Assignment 2: Team assignment
https://swinburneonline.instructure.com/courses/109/assignments/548 5/11
sources should provide direct links to the source.
The body of the assignment should be 4000 words (plus/minus 10 percent) including tables
and graphs and diagrams.
Submission details overview
Each team member will be required to submit a copy of the team assignment.
This assignment will be submitted via Turnitin. You will find the relevant submission point below.
Please allow a 24hour turnaround for an originality report to be generated. See the Turnitin
originality reportLinks to an external site. (https://portal.swinburneonline.edu.au/study
resources/turnitinoriginalityreport0) area of Study Resources for several guides to assist with
the submission process.
Assignment support
Don’t forget that in addition to your eLAs who provide disciplinespecific content advice, you can
access the 24/7 draft writing service from Studiosity.
If you need assistance with academic feedback on a draft of your assignment task
see Assignment support: Studiosity or get in touch with your eLA.
Assignment criteria
1. Executive summary memorandum.
2. SWOT.
3. Vision, mission and overall strategy.
4. Strategy map.
5. Scorecard.
6. Evaluation of the effectiveness of your balanced scorecard in achieving the overall strategy of
‘The Business’.
7. Evaluation of the effectiveness of your Balanced Scorecard in promoting the goal congruence
in ‘The Business’.
Your work will be assessed using the following marking guide:
Criteria No Pass Pass
5059%
Credit
6069%
Distinction
7079%
High
Distinction
80100%24/12/2017 Assignment 2: Team assignment
https://swinburneonline.instructure.com/courses/109/assignments/548 6/11
Criteria No Pass Pass
5059%
Credit
6069%
Distinction
7079%
High
Distinction
80100%
Executive
summary
memorandum
(8%)
Did not
meet
criterion.
A summary of
the report is
missing or little
background
information is
provided.
Knowledge
and
understanding
of related
concepts is not
apparent.
A summary
and key
background
details are
provided.
Knowledge
and
understanding
of related
concepts is
apparent.
A summary
and key
background
details are
provided.
Advanced
knowledge
and
understanding
of related
concepts is
apparent.
A coherent
summary of
the report and
comprehensive
background
information is
provided.
Extensive
knowledge and
understanding
of related
concepts is
apparent.
SWOT (20%)
Did not
meet
criterion.
Little
understanding
of components
and
application.
The reasoning
for the
selection of
issues is not
provided.
Strengths,
weaknesses,
opportunities
and threats
are identified
and
discussed but
there is no
flow of the
identified
issues into
the design of
the balanced
scorecard
and/or the
reasoning
behind the
selection
criteria is not
clear.
Strengths,
weaknesses,
opportunities
and threats
are identified
and discussed
with a flow
connecting
the identified
issues into the
design of the
balanced
scorecard.
Provides a
reasonably
clear
discussion
about the
reasoning for
the selection
of the issues.
Shows a
logical and
cohesive
identification of
the most
important
strengths,
weaknesses,
opportunities
and threats,
providing a
solid
foundation for
the design of
the balanced
scorecard.
Provides a
clear
discussion
about the
reasoning for
the selection of
the issues.24/12/2017 Assignment 2: Team assignment
https://swinburneonline.instructure.com/courses/109/assignments/548 7/11
Criteria No Pass Pass
5059%
Credit
6069%
Distinction
7079%
High
Distinction
80100%
Vision,
mission and
overall
strategy (8%)
Did not
meet
criterion.
A vision,
mission and
overall
strategy/s for
‘The Business’
are missing.
A vision,
mission and
overall
strategy/s for
‘The
Business’ are
formulated
but rather
vaguely, with
no link
between them
and/or the
balanced
scorecard.
A clear vision,
mission and
overall
strategy/s for
‘The Business’
are formulated
with some link
between them
and/or the
balanced
scorecard.
A clear and
purposeful
vision, mission
and overall
strategy/s are
enunciated
that underpin
the design of
the balanced
scorecard.
Strategy map
(20%)
Did not
meet
criterion.
The strategy
map is not
planned well.
No causeand
effect
relationships
are identified.
The objectives
are not defined
or defined
inappropriately.
No explanation
is given why
these
particular
objectives are
important for
‘The Business’.
The strategy
map is
constructed in
a cohesive
way but does
not align
some of the
strategic
objectives to
the vison,
mission and
overall
strategy of
‘The
Business’.
The
objectives are
defined but
the
explanation
as to why
these
particular
objectives are
important for
‘The
Business’ is
not given or is
not clear.
The strategy
map is
constructed in
a cohesive
way and aligns
some of the
strategic
objectives to
the vison,
mission and
overall
strategy of
‘The
Business’. The
objectives are
defined with
the
explanation as
to why these
particular
objectives are
important for
‘The Business’
is
relatively clear.
Shows a
skilfully
planned
strategy map
that accurately
depicts the
causeand
effect
relationships.
Accurately and
in an original
way translates
the mission,
vision and
overall
strategy/s of
‘The Business’.
Definitions and
why these
particular
objectives are
important for
‘The Business’
are thoroughly
discussed.24/12/2017 Assignment 2: Team assignment
https://swinburneonline.instructure.com/courses/109/assignments/548 8/11
Criteria No Pass Pass
5059%
Credit
6069%
Distinction
7079%
High
Distinction
80100%
Scorecard
(12%)
Did not
meet
criterion.
The scorecard
identifies some
elements that
are accurate
along with
some that are
not accurate. It
omits the most
significant
measures and
targets. An
action plan is
not developed.
The
scorecard
identifies the
most
important
elements but
lacks
cohesiveness
with the
strategic
objectives,
mission,
vision and
overall
strategy/s of
‘The
Business’. An
action plan is
developed but
it is unclear
how the
initiatives will
help achieve
the strategic
objectives.
The scorecard
identifies the
most important
elements that
links to the
strategic
objectives,
mission, vision
and overall
strategy/s of
‘The
Business’. An
action plan is
developed
with an
explanation of
how the
initiatives will
help achieve
the strategic
objectives.
The scorecard
depicts a well
devised set of
measures,
targets and
initiatives
aligned with
the strategic
objectives,
vision, mission
and overall
strategy/s of
‘The Business’.
The flow
between
measures,
targets and
initiatives is
clear.24/12/2017 Assignment 2: Team assignment
https://swinburneonline.instructure.com/courses/109/assignments/548 9/11
Criteria No Pass Pass
5059%
Credit
6069%
Distinction
7079%
High
Distinction
80100%
Evaluation
of the
effectiveness
of your
balanced
scorecard in
achieving the
overall
strategy of
‘The
Business’
(16%)
Did not
meet
criterion.
Unclear,
ambiguous
evaluation of
the measures,
targets and
initiatives in
relation to the
strategy of
‘The Business’.
Knowledge
and
understanding
of the related
concepts is not
apparent.
Describes the
process that
led to the
selection of
the measures,
targets and
initiatives.
The
description
does not
provide a
clear rationale
for the
selection,
and/or not all
the measures,
targets and
initiatives are
discussed.
Discussions
are supported
by
appropriate
literature.
Describes the
process that
led to the
selection of
the measures,
targets and
initiatives. The
description
provides a
clear rationale
for the
selection with
most
measures,
targets and
initiatives
discussed.
Discussions
are supported
by appropriate
literature.
Provides a
clear and
comprehensive
reasoning that
led to the
selection of the
measures in
order to
achieve the
overall strategy
outcomes of
‘The Business’
extensively
supported by
appropriate
literature. 24/12/2017 Assignment 2: Team assignment
https://swinburneonline.instructure.com/courses/109/assignments/548 10/11
By submitting my assessments below I declare that:
This is an original piece of work and no part has been completed by any other person than signed
below.
I have read and understood the guidelines on How to avoid plagiarism
(https://portal.swinburneonline.edu.au/studyresources/howavoidplagiarism0) and no part of this
work has been copied or paraphrased from any other source except where this has been clearly
acknowledged in the body of the assignment and included in the reference list.
I have retained a copy of this assessment in the event of it becoming lost or damaged.
I agree and acknowledge that:
I have read and understood the Swinburne Assessment Declaration.
I accept that use of my Swinburne account to electronically submit this assessment constitutes my
agreement to the Swinburne Assessment Declaration.
If I do not agree to the Swinburne Assessment Declaration in this context, the assessment outcome
may not be valid for assessment purposes and may not be included in my aggregate score for this
unit.
Further information relating to the penalties for plagiarism, which range from a formal caution to
expulsion from the University, is contained in the Student Academic Misconduct Regulations 2012 and
at the Assessment declaration (http://www.swinburne.edu.au/currentstudents/manage
course/examsresultsassessment/submitwork/assessmentdeclaration/) page.
Criteria No Pass Pass
5059%
Credit
6069%
Distinction
7079%
High
Distinction
80100%
Evaluation
of the
effectiveness
of your
Balanced
Scorecard in
promoting the
goal
congruence
in ‘The
Business’
(16%).
Did not
meet
criterion.
Narrow focus,
ambiguous
and lacks
specificity.
Knowledge
and
understanding
of the concepts
is not
apparent.
Clearly
presents
arguments
but some
issues are not
discussed.
Discussions
are supported
by
appropriate
literature.
Clearly
presents
arguments.
Discussions
are supported
by appropriate
literature.
Identifies
creative and
plausible
solutions
supported
extensively by
appropriate
literature. The
solutions
address key
difficulties in
achieving goal
congruence in
‘The Business’,
or an
organisation in
general.24/12/2017 Assignment 2: Team assignment
https://swinburneonline.instructure.com/courses/109/assignments/548 11/11
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