15 pages work in topic Strategic Management in course Business analysis(repost)

Home examination in course "Business analysis" in topic "Strategic Management". TASK This home examination consists of two problems, both have to be answered. Start answering each problem on a new page. The assignment is limited to 15 pages including references for both problems, font 12, with 1,5 interval. Calculation can be put in appendix. FROM STUDENT This paper is very important for my course evaluation mark. Absolute requirement: to state in detail all sources utilized (Internet, periodical, books etc.) If direct transcript, you must mark the sentences concerned with e.g. paragraph indentation, italic script or in similar way, and you must also reveal your sources and page references. This home examination consists of two problems: one is theoretical, one is practical. The assignment has to be not larger than 15 pages. ## Deliverables ENGLISH VERSION HOME EXAMINATION Delivery deadline: December 15th, 18:00 TASK This home examination consists of two problems, both have to be answered. Start answering each problem on a new page. The assignment is limited to 15 pages including references for both problems, font 12, with 1,5 interval. Calculation can be put in appendix. FROM STUDENT This paper is very important for my course evaluation mark. Absolute requirement: to state in detail all sources utilized (Internet, periodical, books etc.) If direct transcript, you must mark the sentences concerned with e.g. paragraph indentation, italic script or in similar way, and you must also reveal your sources and page references. This home examination consists of two problems: one is theoretical, one is practical. The assignment has to be not larger than 15 pages. Answers in problem 1 should have been based on specific articles. Question a) and c): • Anthony, R. and Govindarajan, V. (2004) Management Control Systems; (ch.2, p..51-92) • Otley, D. (1995) “Management Control, Organizational Design and Accounting Information Systems??, Issues in Management Accounting, Prentice Hall , London, p.45-63 Question b) and d): • Hauser and Clausing (1988) “The house of quality??, Harvard Business Review, May-June,s.63-73 • Kaplan and Atkinson (1998) Advanced Management Accounting, Prentice Hall (ch.6, p. 222-237) In relation to answer on question c),d), e) it is necessary to have some degree of understanding in respect to TINE company. Its useful to read company`s annual reports and other documents for year 2004 and for several years back: [login to view URL] IMPORTANT: its enough to identify and describe some important points of the company`s development with respect to STRATEGY, QUALITY and PROFITABILITY. In prblems c), d) e) is important to show that you can use theory from the articles to highlight problems in practice. PROBLEM 1 (Weight 2/3) ---------------------- a) Strategic cost management is one of the important topics which in increasing degree is presented and discussed in business studies literature. Based on the course literature, discuss whether the design of management control systems and presentation of management accounting information can have effects on strategic management in a company. b) The topic of much controversy during past years has been in what degree it is profitable to be committed to quality. It is argued in the literature that different types of quality can influence profitability in different ways. Based on the course literature about quality and profitability; discuss what relations are there when it comes to quality and profitability. How different tools of management control can contribute to enhancing quality and profitability? TINE BA is parent company in a TINE Company Group. The company's primary focus is production, distribution and export of dairy products. c) Discuss base on the course literature how TINE's strategic positioning can be explained base on factors in the company's environment. d) Discuss based on your answers in part b) what possible relations between quality and profitability can exist in case of TINE. e) Discuss to what degree introduction of balanced scorecard can increase insight how different central factors can improve profitability in TINE. PROBLEM 2 (Weight 1/3) ---------------------- The new bridge over Oresund between cities of Malmo and Copenhagen was opened on July 1st 2001. The bridge was built by the international consortium of well-known enterprises, and cost 18 billion of Swedish crones. 75 % of the investment value was finance by loan. The consortium has sole right of introducing fees for the car traffic over the bridge up to year 2040. After that, the bridge will be transferred to the Swedish and Danish state without any economic conditions. There are no local alternatives to the transportation over the bridge, but 50 kilometers from the bridge it is possible to take a ferry line between Helsingborg and Helsing0r. Special quality requirements were set to the bridge, and this led to increasing maintenance expenses of the bridge in the period 2001 - 2040. In 2001 interest rate on loan was 8 % and inflation was 4 %. The debate about the fee is followed with great interest in both Sweden and Denmark. For instance, three different alternatives have been suggested in this to some degree confusing debate (notice that these alternatives represent separate arguments): 1) The fee should be calculated in the way that the consortium covers its costs in terms of linear depreciation on the investment over 40 years. In addition, the opportunity cost of capital for the consortium of 16 % on the investment should be covered, followed by present day annual maintenance expenses of 135 millions. 2) Because the bridge lifetime is very long, we should look away from depreciations. On the side of imputed interest cost it is enough to calculate a real rate of interest of 4 %, plus necessary premium to the consortium for risk which should be 5 %. In addition to that, annual maintenance expenses of 135 millions should be covered by the fee. 3) Because the investment is a sunk cost (irreversible) we can look away from both depreciation and imputed interest rates. However, the main focus should be placed on long-term marginal cost of having traffic over the bridge. This cost is calculated to 26 crones for each trip for the personal cars and 156 crones on average for tracks. With present day traffic situation of around 7.000 personal cars and 500 tracks per day, the cost will be around 95 millions a year. The traffic is expected to be increasing in the future, therefore it will compensate for increasing maintenance costs. a) Supported by calculations of relevant costs, comment each of three suggestions which are described above. What can be problematic with each of these three alternatives? Specify all assumptions you made here. b) What is your suggestion to the approach how the fee should be calculated? Argue for your approach. Important! When presenting the answer to the problem, it is not necessary to make presentation of all years - it is enough to make presentation of costs for some years, e.g. year 1, 10, 20, 30 and 40. ## Platform Word