Using Political Economy and Managerial Stakeholder Theories to Analyze JB Hi-Fi's Reporting Decisions

ACCT20074 Final Assignment
Term 1, 2018
Student ID:..................................... Student name..............................................................
Marker’s overall comments: The markers may include any
final comments here.
Overall Mark (Total) out of 50:
0

Question 1: Use Classical Political Economy Theory to explain JB Hi-Fi’s decision to release its profit downgrade
in the way it did. Make sure you explain what Institutional Theory is, and support your observations with evidence
from the case study.
Answer: Your answer is written here. Evaluating the decision made by JB Hi-Fi under the lens of Classical Political
Economy Theory directly indicates the viable option conducted by the company. The Classical Political Economy
Theory directly indicates the minimum involvement of government regulation on operations of the company.
After evaluating the case study, it could be understood that JB Fi-Hi has used adequate announcement to declare
their profit downgrade, where all the relevant rule was being maintained and followed by the organisation.
Therefore, the announcement release made by JB Hi Fi was in accordance with the Classical Political Economy
Theory.( Frieden, 2018)
The institutional Theory mainly indicates that organisations should maintain and follow all the relevant regulations
for supporting their social activities. Therefore, companies need to comply with the rules and regulations laid
down by exchange and regularities. The announcement made by JB Hi Fi is under the rules and regulation made
by ASX, where the material misstatement more than 5% needs a separate announcement. Hence, the
announcement made by JB Hi Fi is adequate and under the rules and regulation made by ASX, while it is
supported by the institutional theory. The statement given by Bruce Smith also indicated the viable measure used
by JB Hi Fi in announcing their profit downgrade (Lamb & Weiner, 2018).
References:
Insert your references here, for example:
Frieden, J. A. (2018). Modern political economy and Latin America: theory and policy. Routledge.
Lamb, A. J., & Weiner, J. M. (2018). Extending the Research on 1: 1 Technology Integration in Middle Schools: A Call for

Using Institutional Theory in Educational Technology Research. Middle Grades Review, 4(1), 3.
Marker’s Comments: The marker will provide feedback here. Mark (10):
0
Exceeds Expectations
(High Distinction) 85-100%
Exceeds Expectations
(Distinction) 75 - 84%
Meets Expectations
(Credit) 65 – 74%
Meets Expectations
(Pass) 50 – 64%
Below Expectations
(Fail) below 50%
Demonstrates a balanced and very
high level of detailed knowledge of
core concepts by providing a very
high level of analysis. Utilises
current, appropriate and credible
sources.
Demonstrates a balanced and high
level of knowledge of core
concepts by providing a high level
of analysis. Utilises mostly current,
appropriate and credible sources.
Demonstrates a good level of
knowledge of some of the core
concepts by providing some level
of analysis. Utilises some current,
appropriate and credible sources.
Demonstrates limited knowledge of
core concepts by providing a
limited level of analysis. Utilises
few current, appropriate and
credible sources.
Demonstrates little, if any,
knowledge of the core concepts
with extremely limited, if any,
analysis. Utilises little, if any,
current, appropriate and credible
sources.
Quality of writing at a very high
standard. Paragraphs are
coherently connected to each
other. Correct grammar, spelling
and punctuation.
Quality of writing is of a high
standard. Paragraphs are mostly
well structured. Few grammar,
spelling and punctuation mistakes.
Quality of writing is of a good
standard. Few grammar, spelling
and punctuation mistakes.
Some problems with sentence
structure and presentation
Frequent grammar, punctuation
and spelling mistakes. Use of
inappropriate language.
Quality of writing is at a very poor
standard so barely
understandable. Many spelling
mistakes. Little or no evidence of
proof reading.
The assessment presents a
detailed and focused summary of
the ideas presented; drawing clear
and well thought-out conclusions.
The assessment presents a fairly
detailed and focused summary of
the ideas presented; drawing fairly
clear and well thought-out
conclusions.
The assessment presents a
somewhat detailed and focused
summary of the ideas presented;
providing some evidence of
conclusions.
The assessment provides limited
detail with no clear summary of the
ideas presented; drawing limited
conclusions.
The assessment fails to provide
any clear evidence of the ideas
presented; drawing no clear
conclusions.

Question 2: Use the Managerial branch of Stakeholder Theory to explain JB Hi-Fi’s reporting decisions. Make sure
you support your observations with evidence from the case study.
Answer: Your answer is written here. The Managerial Branch of Stakeholder Theory directly indicates that
organisation needs to provide all the relevant information to a particular stakeholder for heling them grow and
obtain sustainable growth. Hence, from the evaluation it could be identified that JB Hi Fi has provided all the
relevant information in the announcement for their shareholders, which helped in portraying their future
prospects and income during the fiscal year. In accordance with Managerial Branch of Stakeholder Theory, JB Hi Fi
has adequately provided all the relevant information to their shareholder regarding it current financial position.
The positive delivery of information to the adequate stakeholders was the main reason behind the rapid decline in
share value of JB HI Fi after the announcement. This relevantly indicates that JB Hi Fi adequately takes the
measure in delivering all the relevant information regarding its current and future performance to its
shareholders, as per the Managerial Branch of Stakeholder Theory. In this context, Hussain, Rigoni & Orij (2018)
stated that companies with the help of announcements are able to deliver the adequate information regarding
their progress and decision, as per the ASX regulations. Therefore, the decision made by JB Hi fi in disclosing the
relevant information of profit downgrade is adequate, which helps ion delivering adequate information to the
shareholders.
References:
Insert your references here, for example:
Hussain, N., Rigoni, U., & Orij, R. P. (2018). Corporate governance and sustainability performance: Analysis of triple
bottom line performance. Journal of Business Ethics, 149(2), 411-432.