Accounting, Behavioral and Control - Q&A

Running head: ACCOUNTING, BEHAVIOURAL AND CONTROL
Accounting, behavioural and control
Name of the student
Name of the university
Author’s name

1ACCOUNTING, BEHAVIOURAL AND CONTROL
Table of Contents
Question 1........................................................................................................................................2
Question 2........................................................................................................................................5
Question 3........................................................................................................................................7
References........................................................................................................................................9

2ACCOUNTING, BEHAVIOURAL AND CONTROL
Question 1
Answer 1-1
The strategic position of the poppy company is the cost reduction approach. Their
internal management is concerned more on cost reduction to improve profit margin.
The strategic position of the Iris is customer satisfaction oriented. Rather than reducing
the cost of operation, they focus on improving customer satisfaction through fast delivery and
better services. The Iris has gained goodwill through its customer-centric approach. Since the
company’s focus on improving customer service, customers will prefer Iris product over Poppy’s
product. The customer-oriented approach is helping Iris to gain a competitive advantage over
Poppy (Asiedu and Elvis 2015).
The strategic position of the company is determined by some of the factors that how it
uses its efficiency in increasing the value of the products. The value can be an increase in two
ways, either decreasing the cost of the product or increasing customer satisfaction by
differentiating the product from its competitors (Hammami et al. 2015). The position of the
Poppy shows that it is only focusing on the reduction of price, but still, it is unsuccessful in
making the availability of the product at a premium price, which is lower than its competitors.
However, Iris's strategic position shows that it is successful in creating value to its product as it
is providing fast delivery with other better services at a similar market price like Poppy (Al-
Zu’bi and Hasan Ali 2014).
Answer 1-2
Adam is talking about some values that the customer gets after buying the product apart
from the reduced prices. The Iris is capable of providing better services than Poppy at equal

3ACCOUNTING, BEHAVIOURAL AND CONTROL
prices. This is because the internal management is continuously focusing on improving the
quality of the product. Strategic planning is on a long term basis (Elbanna, Rhys, and Raili
2016). The source of the value is better service at an equal price like its competitors. The efforts
of the internal cost and maintenance department are the source of value that Adam is talking
about. The cost and maintenance department is very efficient as they are successful in providing
quality service and making it available to its customers at the same price. The high strategic
planning is needed to achieve the molding of two benefits in one product that is quality service at
the same price available in the market (Dibrell et al. 2014).
The efficient physical distribution system is another source of this value. The faster
delivery of the product is one of the features;the customer takes into consideration before buying
the product (Luo et al. 2018).
When customer experience quality service, they always prefer to purchase goods from
the same store means better services helps to create customer loyalty. In addition, the company
can also generate a new customer base. The reputation and goodwill become the source of this
value addition in the customer base (Chen, Zelin, and Zhiyuan 2019).
Answer 1-3
The Poppy company has first analyzed how the customer is deviating to other
competitors' products. The analysis can show that, Iris is giving faster delivery to its customers
and the customers are more satisfied with the quality and after-sale service of Iris (Reyes et al.
2017).
The company addresses the situation wisely, as losing existing customers can be a threat
to company sustainability. Earlier, the time taken by the production process of the company was