COA7005 Case Study Analysis Questions and Answers
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CASE STUDY ANALYSIS (CLO2,3,4) – Group (20%)
QUESTION
Referring to Kranworth Chair Corporation (KCC)(page 275):
- Identify the most important key recurring decisions that must be made effectively for KCCto be successful. In KCC’s functional organization, who had the authority to make these decisions? Who has the authority to make these decisions in KCC’s new divisional zed organization?
- Did KCC top management go too far in decentralizing the corporation? Did they not go far enough? Or did they get it just right? Why?
- Evaluate KCC’s new performance measurement and incentive system. Assuming that KCC will retain its new divisional zed organization structure, what changes would you recommend, if any? Why?
- Assume that the R&D function is to be decentralized (given to the divisions). Would this necessitate changes to KCC’s performance measurement and incentive system? If so, which and why? If not, why not?
(Total: 20 marks)
GROUP ASSIGNMENT (CLO1) – (30%)
It is asserted that a mechanistic perspective, which has been developed into a predictive mechanism for the design of optimal management accounting and control systems, is misguided (Otley, 2016). Instead, the existence of management control ‘packages’ that are continually changing and developing requires studies that follow these changes over time and seek to explain the mechanisms that are observed to be deployed. Taking this point of view into consideration, please:
Identify and discuss the changing direction of management accounting and management control systems, the factors driving change and the information needs in the design of management accounting control systems (MACS/MCS). Please also provide a table for the systematic review of MACS/MCS. The table should include the name of the articles, author(s), journal (please use ONLY ISI or Scopus), year, theory and variables used (if any), and major findings.
(Total: 30 marks)
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