Management Accounting Issue- Article
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Added on 2020-02-24
Management Accounting Issue- Article
Added on 2020-02-24
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Management accounting 2ACM 4500
TABLE OF CONTENTSPart 2..........................................................................................................................................3Management accounting issues raised by article...................................................................3SWOT analysis of Dominos...................................................................................................4Part 3..........................................................................................................................................5Recommendations for identified issues.................................................................................5References..................................................................................................................................8
PART 2Management accounting issues raised by articleDomino’s technical problems in France:Recently the issue of data stealing has been acknowledged by Domino’s in France. InFrance, hackers had stolen data from 592,000French customers and 58,000 of Belgiancustomers. The stolen data included all the personal details of customers like full names,addresses, phone numbers, email and their passwords, delivery instructions and also favouritepizza toppings. Hackers demanded a ransom amount of €30,000(£24,000) and same wasposted by them on a site named Pastebin (Letts & Morgan, 2017).Same was admitted bymanagement on their official Twitter account that their encryption data system in France hasbeen hacked by seasoned professional. As hackers were in a position to decode encryptionincluding passwords thus customers were suggested to make quick modification in theirpersonal details (David & David, 2016). This was the major weakness of company as theirreputation was adversely affected due to blunder in online transactions. Further, they have tobear financial loss to prevent legal claim and make changes in their operational activities.Domino’s issues of underpayment to staff in their franchise store: The issue of underpayment has been identified in the audit of various franchises ofDomino’s. By considering management strategies, it can be noticed that company haveconducted programs for focusing on the issues of underpayment to staff members in variousfranchise stores. However, the programs implemented by business were not successful to thefull extent as there is still$770,000 unpaid wages and superannuation in which only 15 storeaudits were finishedand audit of 41 stores are still pending (Letts & Morgan, 2017). Inaddition to that, they recovered $249 million regarding unpaid wages through reviewing 55complaints. This issue is creating a threat to business as it is reducing the morale ofemployees and affecting work environment in an adverse manner.Domino’s slow sales Growth:According to Mr Meiji, growth in the past year is very difficult to match. The company hadattained commendable growth due to various acquisitions and takeovers. These strategies hadexecuted in Germany, Japan and also bought Sprint Pizza (Melnykn et.al, 2014). This
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