Strategic Management Accounting Report: Pumpkin Patch Value Analysis

This report provides a comprehensive strategic management analysis of Pumpkin Patch, a children's clothing company. It begins by outlining value creation and destruction within the company's primary activities at different points in time. The report then delves into an internal analysis, including a SWOT analysis to identify strengths, weaknesses, opportunities, and threats. It further examines the product life cycle of Pumpkin Patch's offerings and utilizes the BCG matrix to assess its portfolio. Finally, the report identifies potential risks faced by the company, offering a holistic view of its strategic position and challenges. The analysis uses various frameworks to evaluate the company's performance and strategic direction.

Strategic Management
Accounting

Table of Contents
INTRODUCTION...........................................................................................................................1
i) Showing "Create Value by" and "Destroy value by" in primary activity at the end of
December 2016...........................................................................................................................1
ii) Showing "Create Value by" and "Destroy value by" in primary activity at the end of
March 2017.................................................................................................................................1
iii) SWOT Analysis.....................................................................................................................2
iv) Internal Analysis product Life Cycle.....................................................................................3
v) Internal Analysis- BCG matrix...............................................................................................4
vi) Determine possible risk.........................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6
Illustration Index
Illustration 1: BCG Growth Matrix..................................................................................................4

INTRODUCTION
Strategic Management is a process in which owners of a company make a plan which is
related to the specific policies and procedure for implementing the activity (Peppard and Ward,
2016). This report, presents the creating and destroying value of Pumpkin Patch. It also analysed
the SWOT and BCG model and product life cycle also explained while analysing the internal
activity of a cited firm.
i) Showing "Create Value by" and "Destroy value by" in primary activity at the end of December
2016
Value Chain Stage
Primary Activity
Create Value By Destroy Value By
Inbound Objectives  Developing new ideas
in children's clothes
 Minimizing the cost of
material
 Failing in competitive
market share
Operations  Increasing production
activities
 Poor managerial
planning
 Lack of decision-
making process
Outbound Logistics  Great market approach  In-appropriate order
and delivery
Marketing and Sales  Development of market
 Increases number of
customers
 Selling unprofitable
products
Service  Education and training  Lack of customer's
need supply
ii) Showing "Create Value by" and "Destroy value by" in primary activity at the end of March
2017
Value Chain Stage Create Value By Destroy Value By
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Primary Activity
Inbound Objectives  Purchasing Intellectual
property
 Reducing negotiation
process with suppliers
Operations  Increasing use of
advance techniques
 Improving product's
quality
 High Cost-based
 Useless products
Outbound Logistics  Delivery on Time
 Eco-friendly packaging
 Improper distribution
system
Marketing and Sales  Increasing market
share
 New product
development
 Eliminate bad pricing
Service  Apply research and
development process
 Delay in responses
iii) SWOT Analysis
Strength
 Company contains experienced
business units.
 It makes great presence in domestic
market.
 Firm also appoint skilled workforce to
performing their work.
 It has high profitability and revenue
which shows the high growth rate of a
business (Bull, Jobstvogt, Böhnke-
Henrichs, Mascarenhas, Sitas,
Baulcomb, Lambini, Rawlins, Baral,
Weakness
 Pumpkin Patch company make heavy
investment in research and
development process by which it can
focus on their growth.
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Zähringer and Carter-Silk, 2016).
Opportunities
 Company has an opportunity to expand
its business in growing economy.
 It also has a chance to develop new
products and services in the
competitive market.
Threats
 Pumpkin Patch also facing the fear with
government regulations.
 Labour cost also increased in last 10
years.
 Competitive situation will also increase
which make negative impact on
profitability (Niederwieser, Baldomero,
Szer, Gratwohl, Aljurf, Atsuta, Bouzas,
Confer, Greinix, Horowitz and Iida,
2016).
iv) Internal Analysis Product Life Cycle
Introduction Phase: In this phase, a new product launched by the cited firm. In 1990,
owner of the company launches its firm as mail order catalogue. It makes most popular while
launching its structure in first time. In this position, company is in position to take high risk.
Growth Phase: In this phase, Pumpkin Patch expand its retail stores and deal in stock at
US department store. In this, company's share price increases with $NZ 1.25 to NZ 2.76. Hence,
in this stage, cited firm create highest level of profits by launching their products in the market
(Gmelin and Seuring, 2014).
Maturity Phase: In this phase, company's sales volume still increased at lower rate. Firm
also acquire its no profit and no loss condition such as owner of firm expands its business in US
and New Zealand and make great market approach.
Decline Phase: In this stage, products will be outdated and sales volume will go down.
Hence, Pumpkin Patch need to stop their production activity and make innovative changes in
their children products (Holzbaur, Ross and Rothrock, 2016).
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v) Internal Analysis- BCG matrix
Illustration 1: BCG Growth Matrix
(Source: Whitehead, 2015. BCG (Growth
Share Matrix)
Star: In this situation, Pumpkin Patch company sold children products into high growth
market so that it can hold its high market share. As a result, owner of company launches its new
products in US and New Zealand and share prices make great changes with $NZ 1.25 to NZ
2.76.
Cash Cows: It is a condition in which cited firm can generate large cash flow with high
market share in a low-growth market. In this condition, Pumpkin Patch expanding its business in
New Zealand and achieve its high growth position but it receive low growth option in case of
expanding their business in Australia.
Questions Marks: It is a situation in which cited firm get low market share in a high
growth market. It can be said that Pumpkin Patch need to make high investment while expanding
its business in Australia.
Dogs: It is a situation in which cited firm will get low market share in a low growth
market. In this case, Pumpkin Patch company eliminate those products which decreases the level
of profit in a competitive market share.
vi) Determine possible risk
From the the presented two cases, it can be analysed that Pumpkin Patch faces various
risk which highly affects its operational activity. These are:
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 Cited firm face the problem to survive in a condition where shares is plunge (Hill, Jones
and Schilling, 2014).
 Pumpkin Patch also estimates the unchanged profit which involved the risks to the
downside.
CONCLUSION
As per the above detailed report, it can be concluded that strategic management plays an
important for the development of any organisation . This report discovered the various model by
which Pumpkin Patch's strength, weakness, product life cycle and internal capability can be
analysed through value chain, SWOT, BCG matrix.
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REFERENCES
Journals and Books
Bull, J. W., Jobstvogt, N., Böhnke-Henrichs, A., Mascarenhas, A., Sitas, N., Baulcomb, C.,
Lambini, C. K., Rawlins, M., Baral, H., Zähringer, J. and Carter-Silk, E., 2016. Strengths,
weaknesses, opportunities and threats: A SWOT analysis of the ecosystem services
framework. Ecosystem services, 17, pp.99-111.
Gmelin, H. and Seuring, S., 2014. Achieving sustainable new product development by
integrating product life-cycle management capabilities. International Journal of Production
Economics, 154, pp.166-177.
Hill, C. W., Jones, G. R. and Schilling, M. A., 2014. Strategic management: theory: an
integrated approach. Cengage Learning.
Holzbaur, E., Ross, J. and Rothrock, T., 2016. Epro Product Life Cycle: Guidance For A
Successful Management Phase. Value in Health, 19(3), p.A109.
Niederwieser, D., Baldomero, H., Szer, J., Gratwohl, M., Aljurf, M., Atsuta, Y., Bouzas, L. F.,
Confer, D., Greinix, H., Horowitz, M. and Iida, M., 2016. Hematopoietic stem cell
transplantation activity worldwide in 2012 and a SWOT analysis of the Worldwide
Network for Blood and Marrow Transplantation Group including the global survey. Bone
marrow transplantation, 51(6), pp.778-786.
Peppard, J. and Ward, J., 2016. The strategic management of information systems: Building a
digital strategy. John Wiley & Sons.
Shanbhag, M., Dutt, M. L. and Bagwe, S., 2016. Strategic Talent Management: A Conceptual
Analysis of BCG Model. Imperial Journal of Interdisciplinary Research, 2(7).
Whitehead, J., 2015. BCG (Growth Share) Matrix. Wiley Encyclopedia of Management.
Online
SWOT Analysis, Discover New Opportunities, Manage and Eliminate Threats. 2017. [Online].
Available through <https://www.mindtools.com/pages/article/newTMC_05.htm> [Accessed on
19 August 2017]
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