Managerial Accounting Report: PWC Model Analysis of BillerudKorsnas

This report provides a managerial accounting analysis of BillerudKorsnas, a Swedish pulp and paper manufacturer, established in 2012. The analysis employs the PwC value framework, examining the company's organizational health through 17 components. The report delves into strategic goals, business models, governance, risk management, remuneration, and various resources and relationships, including financial and physical assets, people and culture, innovation, brands, and processes. It evaluates operational, economic, social, environmental, and segmental performance, concluding with an assessment of materiality. The report finds the company's strategic goals are easily accessible and well-formatted, with an overall quality of 'good' in the value framework. The business model is accessible, though presented textually, and governance is deemed good, with clear structures. Risk management is integrated, and remuneration strategies are competitive. The report assesses financial assets and concludes with an analysis of the overall health of the organization.

Running head: MANAGERIAL ACCOUNTING
Managerial Accounting
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Executive Summary
PWC model aids in the process of comprehending strategy, firm resources and relationships and
the performance of an organization. Here, the organization BILLERUDKORSNAS of Sweden is
a manufacturer of pulp as well as paper. The company was instituted during the period 2012 as a
result of a merger of different competing corporations Billerud AB and Korsnäs AB. In
accordance with PwC model, health as well as performance of business firms has been examined
in detail. There are 17 different components that are recognized for comprehensiveness as well
as accessibility of the each of the components separately discussed for comprehensive analysis.
Finally, inference is presented hereby in this report for better comprehension.

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Table of Contents
Introduction......................................................................................................................................5
Background Information of the company........................................................................................6
Comprehensiveness for 17 Components - Framework of Value PWC...........................................6
Health of Organization...............................................................................................................6
Strategic Goals.........................................................................................................................6
Model of Business...................................................................................................................7
Level of Governance................................................................................................................8
Level of Risk..........................................................................................................................11
Remuneration.........................................................................................................................13
Resources and Relationships:....................................................................................................15
BillerudKorsnäs’ Financial Assets.......................................................................................15
Physical Assets......................................................................................................................17
People and Culture.................................................................................................................21
Innovation..............................................................................................................................23
Brands....................................................................................................................................24
Processes and Supply Chain..................................................................................................24
Organizational Performance......................................................................................................26
Operational performance.......................................................................................................26
Economic...............................................................................................................................27
Social.....................................................................................................................................28
Environmental........................................................................................................................29
Segmental..............................................................................................................................30
Nature of Materiality.....................................................................................................................33
Conclusion.....................................................................................................................................33

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Introduction
There are essentially four different categories of information that a particular corporation
can cut up with other business concerns. There are different external drivers, associations and
firm resources, strategy as well as performance. Furthermore, each and every kind of information
consists of diverse components that aid the administration to evaluate health as well as
performance of business enterprise. In this case, each and every components has been evaluated
from the perspective of comprehensiveness along with accessibility in a bid to review financial
conditions along with performance of the firm BILLERUDKORSNAS.

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Background Information of the company
The organization BillerudKorsnäs of Sweden is a well-known manufacturer of pulp as
well as paper that was instituted during the period 2012 as a result of a merger of different
competing corporations Billerud AB and Korsnäs AB. BillerudKorsnäs concentrates on
delivering packaging sustainable materials (world-most important paper as well as board
material) and provides solutions that enhance profitability of customers’ whilst all at
once augmenting overall environmental influence.
Comprehensiveness for 17 Components - PWC Value Framework
Organizational Health
Strategic Objectives
Strategic objectives of the firm BillerudKorsnäs take account of –
Comprehensiveness:
The overall objective of BillerudKorsnäs’ is attainment of sustainable as well as
profitable growth. In essence, the target of the firm is to develop by approximately 3% to 4%
every year (Billerudkorsnas.com 2018). The primary strategy of the firm BillerudKorsnäs is
founded on five diverse areas that work together, namely, situation, and degree of innovation,
efficacy, sustainability and workforces. Management of the firm has the objective of attaining
continued rate of growth and augmented presence in specific markets, optimize supply chain
(counting clients, products and segments), generation of business opportunities by persistently
working to replace superfluous plastics. In addition to this, the firm also has the strategic

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objective of harnessing market potency for particularly paper founded sacks of cement (Berk and
DeMarzo 2011)
Accessibility:
Strategic objectives of the business enterprise BillerudKorsnäs’ have been accessed
effortlessly from Year End Report published by the company for the year 2017. In essence, the
objectives of the firm are delivered in a structured manner along with risks and threats that the
firm has to encounter for attaining each objective presented. Thus, it can be hereby mentioned
that the strategic goals of the business concern can effortlessly accessed in a bid to evaluate
overall organizational health. In this connection, it can be hereby mentioned that overall quality
of financial condition of the firm from the perspective of strategic objectives in the Value
Framework can be said to be “Good” since it was effortlessly discovered from the integrated
year-end report that is well-formatted and easily comprehensible.
Business Model
Comprehensiveness
The business model of the firm BillerudKorsnäs’ is primarily based on materials of
superior performance from particularly forests situated in the north, counsel, suggestion, service,
collective know-how held by a worldwide network of different machine suppliers, packaging
manufacturers, researchers along with design agencies. In essence, innovative packaging
solutions are necessarily devised in close collaboration with clients all over the world that
demand superior standards of quality, performance along with
sustainability(Billerudkorsnas.com 2018). The business model of the enterprise generates value
for different stakeholders by means of executing higher levels of advanced procedures and

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know-how under the framework of corporation’s value to optimize returns earned on
intangible/tangible resources of the firm, exclusive assets and human capital (Borys and Solarz
2013).
Accessibility:
The business model of the firm BillerudKorsnäs’ can be accessed from yearly report of
the firm without any difficulty. However, the business model of the enterprise is elucidated in a
paragraph and textual format in the year-end report but has no schematic diagram supporting the
textual content on business model. The year-end report of the firm aids in comprehending
business model pursued by the firm. Also, it can be hereby mentioned that the information as
regards business model of the corporation that can be accessed from the yearly pronouncement
of the corporation is presented in a proper format and is therefore easily comprehensible (Braun
and Tietz 2013). Thus, based on information provided in the year-end report it can be hereby
inferred that overall quality of health of the corporation from the perspective of “business model”
mentioned in the value framework can be considered to be good.
Governance
Comprehensiveness:
Corporate governance in the firm BillerudKorsnäs ‘is affected by external as well as
internal regulations. The report declared by the firm on corporate governance specifies about
external regulations that affect governance of the firm BillerudKorsnäs’ include “The Swedish
Act”, legislations counting Swedish Annual Accounts Act as well as IFRS, Nasdaq Stockholm’s
Rulebook along with the Swedish Code of Corporate Governance(Billerudkorsnas.com 2018). In
addition to this, the report at hand also mentions about internal regulations that affect governance

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namely Articles of association, descriptions of Process for every business segment and for all
functions of the group, internal policy regulations of BillerudKorsnäs, Code of Conduct of
BillerudKorsnäs and instruction as well as rules of processes of board of directors. The
governance also stretches beyond regulatory conformity and legislative processes (Breuer 2013).
Also, management of the business concern also endeavors to institute a high-quality enterprise-
wide governance culture with the intention to make sure that different decisions of the enterprise
have to be undertaken in a transparent as well as reasonable way that follows an ethical structure.
Principally, this supports accountability of stakeholders’ and it can thus be mentioned that
decision-makers are to certain extent accountable (Billerudkorsnas.com 2018).The corporate
governance framework of the firm BillerudKorsnäs’ can be properly comprehended from the
chart presented below:

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Figure 2: Corporate Governance Structure of BillerudKorsnäs’
(Source: Billerudkorsnas.com 2018)
Accessibility:
The corporate governance of the corporation BillerudKorsnäs’ can be accessed without
any difficulty from the year end declaration of the business enterprise. The information regarding
corporate governance of the corporation can be accessed from the annual year end assertion of
the firm. Essentially, the information can be comprehended with no trouble as it is properly
formatted and presented in a summarized manner categorized under different headings (Brewer
et al. 2013). Therefore, information on corporate governance can be said to be properly

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presented in the assertion. As a result, it can be hereby inferred that overall quality of health of
the enterprise for the component “governance” presented in the Value Framework can be said to
be “Good”.
Risk
Comprehensiveness:
The process of management of risk can be considered to be a factor that is rooted in the
corporate culture of the business concern BillerudKorsnäs’. In essence, risk management is said
to be inherent in all decisions regarding operations undertaken by the enterprise. Review of year-
end report reveals that risk management is a pre-requisite in the process of maintenance of
sustainability of the firm BillerudKorsnäs’. As per reports, risk evaluation entails recognizing
risks that might perhaps stem in case if the core necessities of financial reporting in the firm are
not satisfied (Cherneva 2012). Management of risk in the firm BillerudKorsnäs’ can be
considered to be a day-to-day procedure. According to reports presented by the firm, the firm has
a system of Group Risk Management that takes the accountability for Enterprise Risk
Management (also reflected as ERM), prevention of loss and insurance programs throughout the
group (Billerudkorsnas.com 2018).

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Figure 3: Risk Management Model
(Source: Billerudkorsnas.com 2018)
Accessibility:
Risk management framework along with internal controls of the corporation can be
seamlessly accessed from the year-end report of the firm for the period 2017. In essence, the risk
management procedure in the firm has been elucidated illustratively and in a succinct manner. In
this way, it aids in the process of comprehending overall risk management framework for the
enterprise. Seeing that the requisite information regarding model of risk management can be
accessed without difficulty from the year-end account of the corporation of the period 2017 and
can be properly comprehended without problems, it can hereby be inferred that overall quality of
the health of the firm from the standpoint of “risk” mentioned in the Value Framework is
undoubtedly good.

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Remuneration
Comprehensiveness:
The company BillerudKorsnäs ‘has a remuneration committee that has both a regulatory,
preparatory as well as administrative role. In essence, the issues regarding remuneration are
minuted and at the same time declared at respective board meetings. Remuneration Committee
of the firm BillerudKorsnäs helps in the process of arriving at decision of the board on specific
issues related to principles of remuneration, total amounts of remuneration as well as other terms
of employment for different members of the team of senior management of the firm (Clark and
Baker 2011). Also, the remuneration committee also helps in monitoring and analyzing programs
for particularly variable compensation to essentially the senior management
(Billerudkorsnas.com 2018). In addition to this, the committee of the firm also monitors and
analyses process of execution of directives for remuneration for different senior officials,
framework of remuneration together with other terms of employment. Analysis of the report also
reflects the fact that the firm’s committee also presents proposals to the members of the board
that necessarily comes to a decision regarding salary as well as other aspects of remuneration for
particularly CEO.
The year end report of the firm BillerudKorsnäs states that the firm strives to attract, keep
and build up the brightest talent by means of delivering competitive remuneration that is
evidently associated to performance. There are both short as well as long-term plans for
incentive for the firm BillerudKorsnäs that are again closely associated to strategic plus financial
targets of the Group’s. These are developed to present sustainable worth for shareholders and
uphold the realization of the strategy of the company (Davis and Davis 2012).