Managerial Accounting Report: PWC Framework and Akzonobel

This report provides an analysis of Akzonobel, a Dutch multinational company, utilizing the PWC Value Framework. The framework, encompassing 17 elements, is used to evaluate Akzonobel's organizational health and performance across various aspects, including strategy, business model, governance, risk management, remuneration, and resources. The report examines the comprehensiveness and accessibility of information related to these elements, drawing on the company's annual reports. It assesses Akzonobel's strategic objectives, business model sustainability, corporate governance structure, risk management framework, and remuneration policies. Additionally, the report investigates the company's financial and physical assets, customer relationships, people and culture, innovation, brands, and operational performance. The analysis reveals both strengths and weaknesses in terms of information accessibility within Akzonobel's reporting, offering insights into the company's overall health and performance based on the PWC model. The report concludes with an overview of the nature of materiality within the company and provides a comprehensive reference list.

Running head: MANAGERIAL ACCOUNTING
Managerial Accounting
Name of the Student:
Name of the University:
Author Note:

2MANAGERIAL ACCOUNTING
Executive Summary
The main aim of the assignment is to explain the elements that are present in PWC Value
Framework and link with the company named as Akzonobel. The PWC Model helps in gathering
facts about the strategy, resources, relationships as well as performance of Akzonobel. The
company in this study is based in Netherlands for detailed analysis purpose. In accordance to the
model, the organizational health as well as performance can be properly studied. There are 17
elements present in the PWC Value Framework where each element signifies about
comprehensiveness and accessibility for better analysis purpose.

3MANAGERIAL ACCOUNTING
Table of Contents
Introduction......................................................................................................................................3
Company Background.....................................................................................................................3
Comprehensiveness for 17 elements- The PWC Value Framework...............................................4
Organizational Health......................................................................................................................4
Strategy:...........................................................................................................................................4
Objectives........................................................................................................................................4
Comprehensiveness.....................................................................................................................4
Accessibility................................................................................................................................4
Business Model................................................................................................................................5
Comprehensive............................................................................................................................5
Accessibility................................................................................................................................5
Governance......................................................................................................................................6
Comprehensiveness.....................................................................................................................6
Accessibility................................................................................................................................7
Risk..................................................................................................................................................8
Comprehensiveness.....................................................................................................................8
Accessibility................................................................................................................................9
Remuneration...................................................................................................................................9
Comprehensiveness.....................................................................................................................9

4MANAGERIAL ACCOUNTING
Accessibility..............................................................................................................................11
Resources and relationships...........................................................................................................12
Financial assets..............................................................................................................................12
Comprehensiveness...................................................................................................................12
Accessibility..............................................................................................................................12
Physical assets...............................................................................................................................13
Comprehensiveness...................................................................................................................13
Accessibility..............................................................................................................................14
Customers......................................................................................................................................14
Comprehensiveness...................................................................................................................14
Accessibility..............................................................................................................................15
People and culture..........................................................................................................................15
Comprehensive..........................................................................................................................15
Accessibility..............................................................................................................................15
Innovation- G & S.........................................................................................................................16
Comprehensive..........................................................................................................................16
Accessibility..............................................................................................................................16
Brands and IA................................................................................................................................17
Comprehensiveness...................................................................................................................17
Accessibility..............................................................................................................................17

5MANAGERIAL ACCOUNTING
Process and Supply chain..............................................................................................................18
Comprehensive..........................................................................................................................18
Accessibility..............................................................................................................................18
Organizational Performance..........................................................................................................18
Operational....................................................................................................................................18
Comprehensiveness...................................................................................................................18
Accessibility..............................................................................................................................19
Economic.......................................................................................................................................19
Comprehensiveness...................................................................................................................19
Accessibility..............................................................................................................................20
Social.............................................................................................................................................20
Comprehensiveness...................................................................................................................20
Accessibility..............................................................................................................................21
Environmental................................................................................................................................21
Comprehensiveness...................................................................................................................21
Accessibility..............................................................................................................................21
Segmental......................................................................................................................................22
Comprehensiveness...................................................................................................................22
Accessibility..............................................................................................................................23
Nature of materiality......................................................................................................................23

6MANAGERIAL ACCOUNTING
Conclusion.....................................................................................................................................23
Reference List................................................................................................................................25

7MANAGERIAL ACCOUNTING
Introduction
This study deals with four type of information that every company need for competing
with other companies (Williams, 2014). This information includes external drivers, strategy,
performance as well as resources and relationships. Each of the information is composed of
different specific elements in the PWC Value Framework that guides management for analyzing
the organizational health as well as organizational performance. In addition, each of the 17
elements had been evaluated in terms of comprehensiveness as well as accessibility for finding
organizational health and organizational performance of Akzonobel in Netherlands
(Akzonobel.com, 2017).
Company Background
Akzonobel is one of the Dutch Multinational Company that helps in creating everyday
essentials (Akzonobel.com, 2017). This particular company operates in the chemicals industry
and leads as a global paints as well as performance Coatings Company that supplies essential
ingredients, essential color to industries and consumers in and across the world. Akzonobel was
founded in the year 1994 and headquartered in Netherlands. Akzonobel operates in three main
business areas and corporate functions that have equal business responsibility and autonomy in
action.

8MANAGERIAL ACCOUNTING
Comprehensiveness for 17 elements- The PWC Value Framework
Organizational Health
Strategy:
Objectives
Comprehensiveness
On analysis, it is found out that the major strategic objective of Akzonobel is to carry the
supportable progress in form of earnings that takes place from expanded selection as it is
comprised by layouts and products. The company had set out list of comprehensive targets that
will be achieved by the year 2030 as it covers main three areas such as economic, environmental
as well as social that complies with sustainable development. The main goals of Akzonobel is to
achieve strategic advantages by taking into account the capabilities or in other term production of
the business for developing good business residency in a challenging, safe and pleasing setting
for their personnel as well as enhancing the valuation of stakeholders of business enterprise
(Wild, Shaw and Chiappetta, 2012).
Accessibility
It is important to understand the fact that the strategic objectives of the company named
as Akzonobel can be easily accessed by looking at the integrated report of the business for the
year 2016. Here, the main objectives are already mentioned in the form of list that aligns with the
objectives where the company has to face any risks or challenges for attainment of future
objectives of the firm. However, the strategic objectives of Akzonobel can be easily accessed for

9MANAGERIAL ACCOUNTING
analyzing the organizational health. It is understood that the quality of organizational health
information for the element named as tactical objectives that are mention in the PWC Value
Framework is considered to be good and simply accessible in the integrated report that is well-
formatted and easy for considerate purpose (Wild and Shaw, 2012).
Business Model
Comprehensive
At Akzonobel, future sustainability developments are already planned by the World
Business Council where they will attain sustainability development by the year 2050. This can be
attained where customer durables are predictable to last longer as well as reprocessing of packing
will be done that are clearly mentioned in the business models (Whitecotton, Libby and Phillips,
2012). By the year 2050, the World Business Council had forecasted that people will only use
five tons of non-renewable materials down as compared to today that is 85 tons. Akzonobel build
on strong chemical platforms that aim at delivering profitable growth in some of the selected
markets. There are several challenges present in the Brazilian economy that Akzonobel had to
face. The Unique Chemical Island business model aims at delivering a healthy presentation from
both costs as well as sustainability perspective. Most of the innovative companies of today are
acceptance ever-evolving business models that aim at offering a clear link to longer-term
financial achievement as a whole.
Accessibility
The business model of Akzonobel can be easily retrieved from the annual report of the
business for the year 2016. There is clear mention of the business models in the annual report of
Akzonobel and this help in understanding the business model in easier way. It is important to

10MANAGERIAL ACCOUNTING
highlight the fact that information relating to business model can be easily manageable from the
annual report of Akzonobel where it is clearly formatted and easy accessible (Weygandt,
Kimmel & Kieso, 2015). However, it can be decided by saying that quality of the society health
for the element business model in the PWV Value Framework is good.
Governance
Comprehensiveness
At Akzonobel, they believe in performing business inherently that involves risk-taking
activities. They believe in seeking help from balanced risks where the company strive to become
successful as well as respectful company. Here, risk management is one of the essential element
in the corporate governance as well as strategy development activities.
Figure: Corporate Governance Structure of Akzonobel
(Source: Warren et al., 2012)

11MANAGERIAL ACCOUNTING
At Akzonobel, they aspire to be become highest standards of corporate governance as
well as seek to constantly improve and improving corporate governance enactment that
emphasizes transparency and surrounding a maintainable philosophy of long-standing worth
formation (Warren, Reeve & Duchac, 2013).
Accessibility
The corporate governance of Akzonobel can be easily retrieved from the annual report of
the company. The data is certainly accessible from the annual report of Akzonobel and it is well-
formatted and easy to understand as well. It is thereby noted that the data about the element
Corporate Governance has been mentioned and concise properly under different sub headings.
There is clear representation of governance in the report and determined that the quality of the
organization health for the element governance in the Value Framework is good.

12MANAGERIAL ACCOUNTING
Risk
Comprehensiveness
The risk management framework of Akzonobel seeks to deliver sensible declaration
where the corporate objectives can be attained in accordance to the customer obligations
(Sowmya & Mounika, 2016). The framework is aligned with the Enterprise Risk Management
that controls the systems as well as major business risks that is constantly reviewed by the Audit
Committee as well as Supervisory Board. Akzonobel constantly attempt to nurture a high
awareness of corporate risks as well as internal regulator that gears up towards presenting risk
appetite and rendering a transparency in the business processes as a whole. Furthermore, the
Executive Committee of Akzonobel are mainly accountable for managing the associated risks
with the activities and establishes satisfactory operational of suitable risk administration as well
as regulator schemes.