Management Accounting of Amcor Ltd Samples for Students †MyAssignment

Question: Discuss about the Management Accounting of Amcor Limited. Answer: Introduction The main purpose of the assignment is to analyze a case study on Amcor Limited as the company deals in packaging materials. Amcor Limited is one of the leaders in multinational packaging company that is headquartered in Australia as well as listed in Australian Stock Exchange (Amcor.com. 2017). The company offers packaging solutions through use of flexible and rigid plastics packaging with getting highest quality. Rigid Plastics and Flexibles are the significant packaging broad lines. In addition, the company even manufacturers PET bottles and hard plastic containers. This company is a global packaging leader where the company aims at attaining social responsibility as well as conducting long-term strategy in an effective way. The study highlights the operational aspects of Amcor Limited and its connection with the case study for the company where they had been allegated for several reasons. This study explains the balanced scorecard approach that has four main dimensions from the pe rspective of customer, financial, internal and learning growth. The other approach that was used in the current study is strategy map approach that is an extension of balanced scorecard approach presented in a diagrammatic format (Simons 2013). Case study on Amcor Limited This particular case analysis has been taken from The Sydney Morning Herald where the title of the case is No compensation for Amcor in court case (Butler 2017). The case was related to employment issues that was prevailing in the company named as Amcor Limited. The company receives no compensation as they were caught for breach of duty by the Senior Executives. Here, the Senior Executives of Amcor Limited were accused that they had secretly purchased tow business that mainly belongs to the packaging giant. For this case, it is declared by the Victorian Supreme Court that the company fails to reveal the case as they were caught with the breach of duty performed by the executives as it involve cardboard box. This had eventually damaged the working of Amcor Limited. Trevor Barnes and Craig Holihan , the two Executives of Amcor Limited was accused for the reason as they paid the packaging company half of the profits that was reaped from one of the trade. Proper judgment and evaluation h as been conducted that made it clear that an end long-running litigation had been evolved where the Executives of Amcor Limited involved in running up legal bills where the financial estimations is more than millions of dollars. In addition, Mr. Hodgson had sued Amcor Limited where Executives looks after the company that makes the purchase of two businesses from the knocked down prices from the year 2000. It is important to consider the fact that Executives of Amcor Limited were accused that the company were hiding the interests as it manifested with incompatibility and lack employee relationship in a given serious dimension. Therefore, it was taken into account that the Executives of Amcor Limited was found using the improper information that is generated from the employees of Amcor Limited and the case will again return to court on April 2016 for a directions hearing (Rothaermel 2015). Long-term objectives, key stakeholders and competitors of Amcor Limited Long-term goals or objectives of Amcor Limited Amcor Limited is the leader in the packaging manufacturing sector and need further improvement so that the company can retain its position in the long-run. To retain the position, Amcor Limited had served the major key areas where they aim at achieving the long-term goal as well as objectives so that employees can work in a sustainable workplace. The five main long-term objectives or goals for Amcor Limited are as follows: The first key areas in the long-term objectives that need to be attained by Amcor Limited are Environment where they implement proper environmental management systems and enhancing over the environmental performance. In that case, the company aims at setting proper regulatory measures that will work together over EnviroAction targets (Hill, Jones and Schilling 2014). The second key areas in the long-term objectives that need to be attained by Amcor Limited are Community where they aim at conducting open and constructive dialogue in and against local community. In that case, the company mainly aims at supporting the local community projects and utilizing packaging expertise that identifies the social and environmental requirements (Eden and Ackermann 2013). The third key areas in the long-term objectives that need to be attained by Amcor Limited are Workplace where they work together for maintaining safe workplace and understanding the need of co-workers. The company works together for maintaining diverse workplace as well as rendering equal opportunity to all the co-workers. The forth key areas in the long-term objectives that need to be attained by Amcor Limited are marketplace where the company aims at utilizing life cycle assessment capabilities as it provides customer responsible packaging and supports sustainability objectives of the clientele. In that case, the company aims at promoting the role and benefits of responsible packaging. The fifth key areas in the long-term objectives that need to be attained by Amcor Limited are economy were the company works together for demonstrating good governance, sensible risk taking and business continuity management at the same time. Identification of key stakeholders of Amcor Limited Key Stakeholders of Amcor Limited Investors Co-workers Industry Bodies and government Media Suppliers Customers Supplies of capital Competitors of Amcor Limited Competitors of Amcor Limited Georgia-Pacific LLC Silgan Holdings Inc Balanced Scorecard of Amcor Limited Perspectives Objectives Performance Measures Initiatives Lag Lead Financial Perspective Enhanced value of shareholders Revenue Growth Sales Mix Expansion in the diversified product business units in both activities such as packaging and materials Low-cost operation Production process cost Production and operation expenses Use of new techniques and materials for attainment of production optimization Driving growth in the emerging market Market Diversification Growth in sales Expansion in the market in countries like Brazil and South Africa. Customer Perspective Expansion in the customer base Market Share Number of new customers Differentiated range of products Positive impact on the community and society Environmental collision of packaging Number of sustainable packaged produced Responsible packaging Industry leading customer loyalty Customer Retention Number of retained customers and on-time delivery rate Market Leadership by acquiring expertise and rigid plastics packaging (Barney and Hesterly 2015) Internal Business Perspective Customer Intimacy strategy Previous packaging products Customer support systems High standard and quality management within the stipulated time Operational Excellence Strategy Improved speed in the market Customer interaction Supply chain optimization Product Leadership Strategy Innovation and new product development CRM (customer relationship management) systems Decreased in the operational cost and cycle time Learning and Growth Perspective Organization capital Culture Leadership Alignment as well as teamwork Information capital Systems Databases Networks Human capital Skills Training Knowledge Critical analysis on how to use balanced scorecard and strategy map that will help Senior Management of Amcor Limited It is argued in the study that use of balanced scorecard and strategy map will provide guidance to the Senior Management Team of Amcor Limited so that they can easily monitor or look at the corporate and divisional level of performance. This will directly help in motivating the staff members of Amcor Limited as balanced scorecard and strategy map are significant tools for sustainability improvement in the most appropriate way (Bettis et al. 2014). Conclusion From the above analysis, proper explanation is given on the background of the company named as Amcor Limited. The information is extracted from the annual report of Amcor Limited and news article take from The Sydney Morning Herald. The study presents the approach such as balanced scorecard and strategy map in a diagrammatic approach that clearly defines the lag indicators and lead indicators. References Amcor.com. 2017.Amcor - Home. [online] Available at: https://www.amcor.com [Accessed 18 May 2017]. Barney, J.B. and Hesterly, W., 2015.Strategic management and competitive advantage concepts and cases. Pearson. Bettis, R., Gambardella, A., Helfat, C. and Mitchell, W., 2014. Quantitative empirical analysis in strategic management.Strategic Management Journal,35(7), pp.949-953. Butler, B. 2017.No compensation for Amcor in court case. [online] The Sydney Morning Herald. Available at: https://www.smh.com.au/business/no-compensation-for-amcor-in-court-case-20120320-1vgv4.html [Accessed 18 May 2017]. Eden, C. and Ackermann, F., 2013.Making strategy: The journey of strategic management. Sage. Hill, C.W., Jones, G.R. and Schilling, M.A., 2014.Strategic management: theory: an integrated approach. Cengage Learning. Rothaermel, F.T., 2015.Strategic management. New York, NY: McGraw-Hill. Simons, R., 2013.Performance Measurement and Control Systems for Implementing Strategy Text and Cases: Pearson New International Edition. Pearson Higher Ed.