Market Analysis of Monoclean Ltd Samples †MyAssignmenthelp.com

Question: Discuss about the Market Analysis of Monoclean Ltd. Answer: Introduction In the given case study we see that the Monoclean Ltd is a big multinational company that is having a huge market presence and its area of operation is also wide spread. In the recent years the company is undergoing certain changes and is considering making certain changes to its overall area of operation and also the functionality of the employees and the managing director is also changed accordingly and new changes to the overall scenario is recommended that will help in improvement of the overall efficiency(Mayntz, 2017). It will also help in better management of the inventory and also will improve the overall scale of operation. But there are certain issues that the management is facing with the changed system of functioning and because of the same there need to be certain changes that will help in solving the below given problems(Goldmann, 2016). Analysis No proper delegation of work: In the given new structure it can be seen that the manufacturing managers are at a very influencing position and can affect the overall functioning of the management of the company. They are the ones who are dealing with the production and sale and the other managers are just supervising and have no say in that matter. This puts the company at a very risky position because the overall management of the system is not up to the mark and is not appropriate. It has led to a lot of obsolete inventory being created and also the overall sales have also been affected because of the same(Tysiac, 2017). The managing director of the company is not having any say in the capital expenditure process and this might affect the overall profit of the company. Previously there were 12 units and each had different managing directors and now we see that there are 5 units and each of them is having different manufacturing directors and none of them are entirely being managed by the managing director. Thus we see that there are no proper delegation of work between the managers of the company and thus the overall allocation and delegation of work is not appropriate and not up to the mark for the efficiency of the company and its functioning(Gartland, 2017). No proper allocation of cost It can be seen that there are not proper cost drivers defined that might be effecting the overall allocation of cost between various departments and this is eventually effecting the overall profit of the company. If the cost is not allocated properly it might lead to undervaluation or overvaluation of the inventories of the company and also end up affecting the profit of the company. Like we see that the cost of the inventory shipping and transportation are not properly managed and not allocated accordingly this has been affecting the overall cost of the inventory of the company. Also the overall absorption of the manufacturing overhead variance is not appropriate as it might be affecting the overall manufacturing cost of the product. Thus we see that in allocation or wrong allocation of the cost by manufacturing managers who are not capable enough to handle the overall cost is affecting the overall cost of the product of the company(Fay Negangard, 2017 ). There are few remedies by which the company can improve the overall system and bring in the required changes, which will help in overall increment of the efficiency and also improve the overall profitability of the company. Proper allocation of work- It is important that there must be proper delegation of work between the managers of the company. For each of the five units along with different manufacturing directors, there must be proper supervision by the management directors so that there can be overall supervision and proper management of the resources is there. It is important that the decisions taken by the manufacturing directors must be supervised by the managing director so that they can take proper decisions that are affecting the overall profitability of the company(kabir, Rahman, Su, 2017). It is also important that there must be proper methods for recruitment of the management of the company so that it is not affecting the company and its efficiency. The overall responsibility of the managers must be properly defined and proper methods must be given for overall management of the inventory of the company and its overall assets. The company should also see to it that proper training is provi ded to the managers so that they can be capable enough to take important decisions with regard to the company. These are the few methods in which by changing the overall recruitment method of the company the managers can improve the efficiency of the company(Tysiac, 2017). Effective allocation of cost Proper methods of activity based costing and transfer pricing must be followed so that there can be proper allocation of cost and there must not be any effect to the profitability of the company. The methods for allocation of the transportation cost and inventory shipping must be allocated after careful scrutiny so that the overall cost of the product is not affected because of the same. Also it must be seen that all the variances must be properly allocated on the basis of the accurate cost drivers so that there is no issue in the overall profitability. This is one of the most important step that the company needs to take to make sure that the company is making the necessary amount of profit so that in the future the company is not incurring losses because of the wrong cost allocation. These are the few ways in which the company can improve its present position and in the future the profitability of the company will increase(Fay Negangard, 2017). Conclusion The company will earn more and in case the company goes for expansion in the future the company will be in a good position with more units coming up in the future. The company can make sure that the work allocation and cost allocation is properly supervised by the management of the company(Laursen Thorlund, 2016). References Fay, R., Negangard, E. (2017). Manual journal entry testing : Data analytics and the risk of fraud. Journal of Accounting Education, 38, 37-49. Gartland, D. (2017). The importance of audit planning. Journal Of Accountancy. Goldmann, K. (2016). Financial Liquidity and Profitability Management in Practice of Polish Business. Financial Environment and Business Development, 4, 103-112. kabir, H., Rahman, A., Su, L. (2017). The Association between Goodwill Impairment Loss and Goodwill Impairment Test-Related Disclosures in Australia. 8th Conference on Financial Markets and Corporate Governance (FMCG) 2017, 1-32. Laursen, G., Thorlund, J. (2016). Business Analytics for Managers: Taking Business Intelligence Beyond Reporting (Second ed.). CANADA: Wiley Publisher. Mayntz, R. (2017). Networked Governance. Springer. Tysiac, K. (2017). Rulemaking gives auditors a chance to provide more insight. Journal of Accountancy.