Sunday, December 8, 2019
Management Accounting for Accounting and Management Issues
Question: Discuss about theManagement Accounting for Accounting and Management Issues. Answer: We as a team of graduates are compelled to express concern about the response to our memo regarding how we at Company handle issues related to Accounting and Management issues. We would like to suggest a number of solutions for defined issues in the article. Since there are more athleisure options for women; we would suggest Nike to put forward Product Differentiation theory for consideration in order to attract women towards their brand as by having it there will be more superior quality products, improved customer service and innovative product features. Providing customers with a sales person who has good knowledge about the products will assist the customers to differentiate the products. Innovation can be a key source of Competitive advantage, the sooner an innovative product can be released into the market; the better will be Customers response. Focusing on Customer Relationship Management by collecting and analysing data to understand customers behaviour patterns and needs develops strong relationship with customers. We would recommend company to follow institutional theory in order to imitate competitors good practices to fascinate women who are turning their heads towards other brands. Moreover, to avoid product going out of style following pull system will be a good idea which is to hold inventory and manufacture products according to customer demands, Also they can have safety stock in case if customer demand increases. As Nikes Products came from 900 different material suppliers, company can drive sustainability improvements in materials focusing on value chain over which they have most of the control which is product design. Managers must look for opportunities to reduce the price of products. Value Analysis can be a helpful step in order to identify these opportunities. Deeply analysing the trends of Nike Inc. our team has also identified threat of Market Saturation for this company. As nowadays, Athletic shoe market is full of variety of companies and brands there is only a little space left for new entrants. Also new innovative products and growth of market shares are facing hardships to enter into market. Though Nike is holding a lead for its market share currently, they have just got a little room to expand more. In response to above threat we would like to convey Company to keep focus on Market Share and do not let other competitor companies steal their market share by taking broader market in mind including teenage generation who is interested in sports and extreme sports. There is a need to make sure that company stay active in whole athletic apparel market rather than athletic shoe market. In order to deal with its droping sales Nike has transformed the industry of athletic shoe with technological improvement and innovations. The company has understood that the most important thing is that it need to market its product. The design elements and functional aspects of the product forms the part of the overall marketing process. The company believes that it has to innovate for a specific reason and the reason originates from marketing. The company has been successful in keeping the manufacturing cost down whereas other companies are yet struggling to keep their cost low. Despite the fall in sales the company understood that it was missing core group of consumers. In order to boost up its sales and the core consumer group the company has come with the strategy of meeting up with the consumer wants. To understand the consumer wants the company visit the amateur sports events and spends time with the consumer. This helps Nike in ensuring that product meets the quality and dem and of the consumers. Understand the consumers forms the best forms of marketing for Nike. The entire experience forced the company to rule certain products that did not met the consumer wants. https://www.managementexchange.com/story/nike%E2%80%99s-gameplan-growth-that%E2%80%99s-good-all Reference List: Hollensen, S., 2015.Marketing management: A relationship approach. Pearson Education. Goworek, H. and McGoldrick, P., 2015.Retail Marketing Management: Principles and Practice. Pearson Higher Ed.