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Management Accounting - Sample Assignment

   

Added on  2021-05-31

17 Pages4160 Words41 Views
Management AccountingNestle

MANAGEMENT ACCOUNTING1Executive SummaryThe aim of this report is to understand the concept of Balanced Scorecard and its adoption inNestle Company. It will also highlight how Balanced Scorecard is suitable for the company.Along with this, a discussion will be done on how balanced scorecard is different fromtraditional performance measurement system.

MANAGEMENT ACCOUNTING2Table of ContentsExecutive Summary...................................................................................................................1Introduction................................................................................................................................3Overview of Nestle................................................................................................................3Balanced Scorecard................................................................................................................5The Four perspectives of balanced scorecard....................................................................5Features of Balanced Scorecard.........................................................................................6Balanced Scorecard for Nestle Company..........................................................................8Ways by which Balanced Scorecard is different from Traditional PerformanceMeasurement System.............................................................................................................8Suitability of Balanced Scorecard for Nestle.......................................................................11Covers Operational Activities..........................................................................................11Allows Performance Analysis..........................................................................................12Refine Measures and Metrics...........................................................................................12Communicates Vision and Mission.................................................................................12Clarifies Strategic Objectives...........................................................................................12Conclusion................................................................................................................................13References................................................................................................................................14

MANAGEMENT ACCOUNTING3IntroductionA system of performance measurement helps in making and handling key performanceindicators which should be at the priority of the company's management. It has to excite themost suitable behaviour (David and Joseph, 2014). Fruitful performance measures cover alogically balanced set of measures of the organization which offers an impartial procedureperformance assessment that results in the 3 Rs of the business that is everyone one performsright things, by doing it right at right time. Performance metrics which are also the part ofperformance measurement system of organization can also result in unwelcome behaviors ifperformed in separation from the total needs of the enterprise (Smarter Solution, 2018). Thisreport is being prepared in order to understand the performance measurement systems andtheir operations that support business organizations to resolve identified issues. The systemwhich will be discussed in this report is Balanced Scorecard system and its implementation inthe Nestle Company to analyze whether it is suitable for the company or not. An overview ofthe Nestle Company will also be provided to know more about the company. Further, adiscussion will be done to know the difference between traditional performance measurementsystem and balanced scorecard system. Overview of NestleNestle is a Swizz drink and food company with headquarter in Vevey, Vaud, Switzerland. Itis the world’s biggest company of food, in terms of revenue, since 2014. In the FortuneGlobal 500 list of biggest public company Nestle was ranked on No. 64 in 2017 and in 2016it was ranked at 33 positions. The product range of the company comprised of medical food,coffee and tea, snacks, bottles water, baby food, ice-cream, dairy products, pet foods,confectionery, breakfast cereals, and frozen food. Around 29 brands of Nestle has yearlysales of US$ 1.1 billion, comprising Kit Kat, Nesquik, Maggi, Nespresso, Vittel, Smarties,

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